UBS maintains its neutral recommendation on the stock with a target price of €87 after the presentation of the quarterly figures. The analyst considers the first-quarter results in America and Europe to be disappointing.
Organic sales for the first quarter were down 7.6% compared with the 7.1% forecast, due to destocking in the United States and underlying weakness in Europe and Latin America. China and India are not as badly affected as expected,' the research firm points out.
In the medium term (2026/27-2028/29), the group expects its organic revenue growth to improve to an average range of +3% to +6%, as well as an increase in its organic operating margin.
At the current price, the stock has a 2025 P/E ratio of around 14 times with a yield of nearly 5%.
Pernod Ricard is the world's No. 1 in the production and marketing of Premium and Prestige spirits and wines. Net sales break down by family of products as follows:
- spirits and champagnes of strategic international brands (61.3%): Absolut (12.3 million cases sold in 2024/25), Jameson (11.2 million), Ballantine's (9.1 million), Chivas Regal (4.8 million), Ricard (4.2 million), Malibu (4.1 million), Beefeater (3.3 million), Havana Club (3.3 million), Martell (1.9 million), The Glenlivet (1.4 million), Perrier-Jouet (0.3 million) and Royal Salute (0.2 million);
- local strategic brands' spirits (18.4%): Seagram's, Kahlua, Olmeca, Seagram's Gin, Ramazzotti, Imperial, and Pastis 51 brands, etc.;
- speciality brand's craft spirits (7.3%): Italicus, Lillet, Pernod, Suze, Augier, Malfy, Jefferson's, Powers and Redbreast brands, etc.;
- strategic wines (4%): Jacob's Creek, Kenwood, Brancott Estate, Campo Viejo, Church Road, George, St Hugo, Stoneleigh, Ysios and Wyndham brands;
- other (9%).
At the end of June 2025, the group has 94 production sites worldwide.
Net sales are distributed geographically as follows: Europe (28.9%), Americas (28.8%) and other (42.3%).
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