Some of Pernod Ricard’s wide portfolio of brands in travel retail.

Shares in French drinks giant Pernod Ricard closed the week +3.7% higher as global travel retail (GTR) helped the owner of major brands like Absolut Vodka, Jameson Irish Whiskey, Martell Cognac, and Perrier-Jouët Champagne achieve a flat quarter (January to March 2026) in organic terms.

Reported net revenue fell by -14.6% to €1.95bn in Q3 (of fiscal 2026), but organic growth (excluding currency and other impacts such as acquisitions or disposals) showed a marginal rise of +0.1%*. This was a significant improvement on the nine-month (9M) result, where sales of €7.2bn were down -4.4%.

By business unit, GTR had the best Q3 with growth of +11% (and +2% 9M), followed by Asia-Rest of the World at +6% (and -2% 9M), Europe (+1%/-2%), China (-7%/-24%), and the Americas (-8%/-10%).

In an investor call on Thursday, Hélène de Tissot, EVP Finance & Tech, referenced travel retail and said: “Global traveller numbers remain strong, with revenue rebounding following the resumption of cognac sales in China duty-free. Asia duty-free also benefited from an active marketing programme celebrating the Chinese New Year (CNY), with strong double-digit sell-out for Martell. Korea is also back to growth in the quarter.”

She added: “Elsewhere, Europe and the Americas continue to see positive momentum in sell-out, notably cruises in the Americas. As you can imagine, the Middle East faces travel disruption as a result of conflict there, and GTR is now expected to be in slight decline for FY26.”

While growth rates strengthened in all regions in Q3, some markets are challenging. In the Americas, the USA was down -12% in the quarter (-14% 9M), though an active innovation pipeline is helping recruit new consumers and maintain brand desirability. Examples include a Jameson collaboration with KidSuper, Absolut Tabasco, and Malibu Pink.

Pernod Ricard H1, Q3, and 9M results by region in FY26.

While China saw a significant improvement in Q3 to -7% (-24% in 9M), Pernod Ricard said the macro context “remains challenging” with weak consumer confidence and a tightened regulatory environment. The Q3 gains were helped by the phasing of CNY, masking a soft underlying performance. Year-to-date sales of Martell and Scotch whiskies are in decline, though premium brands have momentum.

India outperforms for Pernod Ricard

Within Asia, India was the star performer, up +11% in Q3 and +6% in 9M, driven by consumer demand and continuing premiumisation. Pernod Ricard said it was seeing “broad-based growth” there, with imported spirits up in strong double-digits, including Jameson, Absolut, and Scotch. Local brands also performed well, especially Blenders Pride, supported by the launch of the new Xclamat!on spirits range.

De Tissot said: “Sales have improved in markets across all regions in Q3, with strong momentum in emerging markets and continued growth in several mature markets.” To keep the Q3 momentum going, Pernod Ricard is exploiting consumer trends such as:

– Addressing affordability using smaller formats

– Consumer experiences, including music festival activations

– Convenience, through ready-to-drink (RTD) formats and targeted store activations

– Broadening consumption occasions with no- and low-alcohol products.

RTDs grew fastest at +26% in Q3, and +16% in 9M. Meanwhile, the company’s strategic international brands were up +2% in the quarter (-5% in 9M), with strong growth of Ballantine’s, Royal Salute, and Malibu, while Perrier-Jouët continued what the French company called “its stellar performance YTD”.

Looking ahead to the full fiscal 2026, Pernod Ricard said in a statement: “In a context that remains volatile and uncertain, we see FY26 as a transition year with improving trends in H2.” However, the company added: “Given the ongoing conflict in the Middle East, we now expect organic net sales to decline by -3% to -4% for the full year.

“We will continue to defend our organic operating margin to the fullest extent possible, supported by strict cost control and the implementation of our FY26 to FY29 €1bn operational efficiencies programme, including the adaptation of our ‘fit for future’ organisation.”

[* All percentages following this one are organic, not reported.]

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