Aug 27, 2026 earnings call — FY26 results and strategic update
Accelerated EUR 1 billion efficiency program delivered half in FY '26, with cash conversion at 91%.
Revenue $4.8B (est $4.9B) · EPS $0.42 (est $0.39)
Key quotes
"with the acceleration of our EUR 1 billion operational efficiencies program, delivering half of the target in fiscal year '26 and with full delivery now expected by fiscal year '28 instead of fiscal year '29, i.e., 1 year ahead of anticipated,"
"So starting with the U.S. market, which was down 14%, as I said."
"spirits-based RTDs are the fastest-growing RTD segment, and this is somewhere we can play quite seriously in."
Analyst Q&A 8
U.S. outlook and India IPO
Q (Gen Cross · BNP Paribas): They asked whether U.S. trends will improve in fiscal 2027 and whether an India IPO is still being discussed.
A: Management said the U.S. is expected to remain soft and that assumption pushed their midterm framework toward the lower end. The Board is still discussing an India IPO and is taking legal steps to keep the option open, but no decision yet.
"The key reason for, I would say, skewing towards the lower end of that midterm framework of plus 3% to 6% top line over fiscal year '27 through to fiscal year '29, i.e., close to 3% comes from the acknowledgment that the U.S. market will remain soft over that period." — Alexandre Ricard (CEO·CHAIR)
China outlook and margin drivers
Q (Mitchell Collett · Deutsche Bank): They asked what supports confidence for improving China trends and asked for the main moving parts behind the '27 margin guidance.
A: Management said assumptions for China are cautious but they see some underlying improvement and cautious trade optimism ahead of the festival. On margins, they expect headwinds from wet goods and Middle East cost impacts, offset partly by better fixed cost absorption, tariff offsets from India FTA, and continued cost discipline.
"All in all, we will be continuing our strong discipline, grabbing any opportunities, accelerating our operation efficiencies and maintaining our A&P while continuing our strong effort on structure cost." — Mauve Croizat (CFO)
Where EUR 500m savings came from
Q (Sarah Simon · Morgan Stanley): They asked how the EUR 500 million savings in fiscal '26 split across COGS, A&P and structure costs and for more detail.
A: Management said the savings were mostly P&L and split across COGS, A&P and structure costs. They cited procurement and supplier improvements, lower non-working A&P, and manufacturing and asset optimization as key drivers of COGS and make savings.
"And as you can imagine, it's indeed split across COGS, A&P and structure cost." — Mauve Croizat (CFO)
India FTA and RTD plans
Q (Simon Hales · Citi): They asked how the UK-India FTA is affecting India plans, Scotch imports and premium building, and whether RTDs will accelerate in fiscal 2027.
A: Management said the UK-India FTA, effective July 15, should boost UK/Scotch exports and allow price adjustments and more innovation in India, while also helping imports like Jameson. On RTDs, they said RTDs are a priority and they will increase investment and innovation and speed to market, but gave no numeric forecast.
"Our intention is indeed to increase our investments behind RTDs to increase our innovation behind RTDs." — Alexandre Ricard (CEO·CHAIR)
Europe performance and gross margin outlook
Q (Olivier Nicolai · Goldman Sachs): They asked how to think about Europe in fiscal '27 and whether gross margins will face more pressure and if tariffs are factored in.
A: Management said Europe is broadly stable with country-level ups and downs; weakness this year came mainly from Spain, France and Germany while the UK and some Central/Eastern markets perform better. They warned margins will be pressured by wet goods and Middle East impacts, but some tariff returns have been received and India FTA may partly mitigate effects.
"But at least one can view Europe as a stable, I would say, homegrown territory, which doesn't have excessive volatility one way or another, at least in a very volatile world." — Alexandre Ricard (CEO·CHAIR)
Further cost savings and team engagement
Q (Edward Mundy · Jefferies): They asked if there are further cost opportunities beyond fiscal '28 and how management keeps teams engaged despite U.S. and China pressures.
A: Management said the cost program is a continuous journey and they are actively searching for new opportunities beyond prior plans. On engagement, they run pulse surveys, travel and town halls to communicate transparently so teams understand the situation and stay committed.
"I'm definitely not going to sit down on my seats and live on Hélène's legacy, but really actively working in finding new opportunities." — Mauve Croizat (CFO)
Must-win markets and dividend scrip
Q (Chris Pitcher · Rothschild & Co Redburn): They asked whether the 4 must-win markets focus still makes sense and if the reference shareholder’s scrip support is ongoing until 3x net debt/EBITDA.
A: Management said the scrip is an option but no final decision; the reference shareholder and GBL supported the current scrip. They affirmed the must-win markets remain priorities (U.S., India, Travel Retail, China) and that they continue to invest behind brands, focusing on returns and better working A&P.
"At the end of the day, we're committed to investing behind our brands to make them relevant and to engage with the right consumers through the right channels." — Alexandre Ricard (CEO·CHAIR)
China signals and U.S. destocking
Q (Sanjeet Aujla · UBS): They asked if China improvements reflect lapping enforcement and whether nightlife/banqueting channels stabilize, and if U.S. destocking will be less in fiscal '27.
A: Management said part of the China improvement is lapping the May 2025 alcohol ban and trade sentiment ahead of Mid-Autumn Festival is cautiously optimistic, with some improving underlying trends but not a return to growth yet. On U.S. destocking, they expect further inventory adjustments but think the starting base is healthier so the impact should be smaller than the prior year.
"But at the same time, it is true that trade sentiment ahead of Mid-Autumn Festival for the first time in a number of years is cautiously optimistic, and we have seen as well some degree of improving underlying trends." — Alexandre Ricard (CEO·CHAIR)