French spirits producer Pernod Ricard SA expects to achieve its medium-term cash conversion target in 2026, one year sooner than previously forecast, the group's Chief Financial Officer Helene de Tissot said.
The company, known for brands including Absolut vodka and Jameson whiskey, also announced a downward revision to its strategic investment plan for fiscal 2026. Chief Executive Officer Alexandre Ricard said planned investments will be reduced to €750 million from the €900 million figure that had been projected earlier.
The cut in planned investment amounts to €150 million versus prior guidance. Pernod Ricard framed the adjustment as a measure that could free up capital as the business concentrates on strengthening its cash position while pursuing its medium-term objectives.
The finance chief's comment on the timing of the cash conversion target indicates the company now anticipates meeting that goal in 2026 rather than in the originally indicated year. Management did not provide additional numerical detail about the components of the cash conversion metric in the comments provided.
Management's decision to lower strategic investment for the fiscal year to €750 million reflects a reallocation of planned capital spending relative to previous projections. The company characterized the reduction as significant in size, noting the €150 million difference compared with prior forecasts.
Beyond the revised investment figure and the updated timing for the cash conversion target, Pernod Ricard did not supply more granular guidance within the remarks cited. The statements highlight the group's focus on cash generation and capital allocation for the coming fiscal year.
Summary of management announcements
- Pernod Ricard expects to meet its medium-term cash conversion target in 2026, one year earlier than planned.
- Strategic investments for fiscal 2026 were reduced to €750 million from €900 million.
- The reduction equals €150 million and is described as potentially freeing capital as the company focuses on improving its cash position.
The information above reflects the comments made by Pernod Ricard's chief financial officer and chief executive officer regarding the timing of a cash target and a change to the company's forecast for strategic investment in the next fiscal year.