Pernod Ricard’s Annual Sales Hit by U.S. and China Weakness

Updated At : 11:18 AM Aug 28, 2025 IST

Pernod Ricard (PERP.PA) reported a 3% decline in full-year organic sales on Thursday, in line with forecasts, as trade tariff uncertainty and weaker demand in the United States and China weighed on performance.

The French group, the world’s second-largest Western spirits maker after Diageo (DGE.L), said it expects fiscal 2026 to be a “transformational year,” with sales momentum likely to tilt toward the second half.

The company warned of a further sales drop in the first quarter, citing continued distributor inventory adjustments in the U.S. and subdued consumer demand in China.

Pernod, which has launched a restructuring plan to reduce costs, reaffirmed its medium-term guidance of 3% to 6% annual organic sales growth and annual margin expansion for fiscal years 2027–2029.

For the 12 months ended June 30, revenue came in at €10.96 billion ($12.83 billion), reflecting the 3% organic decline — matching analysts’ expectations. Recurring operating profit fell 0.8% on an organic basis to €2.95 billion.

($1 = €0.8542)