Pernod Ricard posts revenue decline as US, China weigh on 2025 performance 

FRANCE – Pernod Ricard, the French spirits giant and owner of Martell Cognac, has reported a 3% decline in organic revenue to €10.96 billion (US$12.8 billion) for the fiscal year ending 30 June 2025.  

On a reported basis, revenue fell by 5.5% compared to the previous year, with performance negatively affected by weaker demand in China and the United States. Despite the decline, the company recorded a 2% recovery in volumes. 

Profit from recurring operations decreased organically by 0.8% to €2.9 billion (US$3.4 billion). Regional performance varied, with sales in the Americas dropping by 3% organically. 

Within this, US sales fell by 6%, attributed to subdued consumer confidence and economic moderation, a trend Pernod expects to continue into the next fiscal year amid tariff uncertainty.  

Excluding the US, the Americas posted a 2% organic sales increase, supported by growth in Canada and Brazil, while Mexico recorded a slight decline but gained whisky market share. 

In Asia, China presented the steepest challenges, with sales plunging 21%, driven by declines in Martell Cognac and Scotch brands. The company anticipates further weakness in China at the start of fiscal 2026. By contrast, India delivered a 6% sales rise, bolstered by premiumisation trends.  

Pernod highlighted double-digit growth for Royal Stag whisky and strong momentum for Jameson Irish whiskey, now the top imported spirit brand in India.  

However, the group noted that recent excise duty changes in Maharashtra could weigh on India’s performance in early fiscal 2026. 

The global travel retail segment also contracted, falling 13%. Pernod cited the suspension of Cognac imports into Chinese duty-free outlets due to an ongoing anti-dumping investigation as a key factor, along with weak sales in South Korea and Taiwan.  

The company expects the segment to return to growth in fiscal 2026 once Martell resumes distribution in Chinese airports in the second quarter. 

Martell’s global sales dropped 20%, led by the downturn in China. In Europe, overall sales slipped 2%, with growth in France offset by weaker performance in Germany and Spain. 

Within its Scotch whisky division, Chivas Brothers recorded a 3.4% decline for the year. Chivas Regal rose 2.3%, supported by strong demand in Turkey, while Ballantine’s remained stable with marginal growth. The Glenlivet fell 4%, and Royal Salute dropped 18%. 

Looking ahead, Pernod forecasts fiscal 2026 as a transition year, with a likely first quarterdue to inventory adjustments in the US and soft consumer demand. Strategic investments are expected to remain below €900 million (US$1.48 billion), with a renewed focus on cash generation. 

For fiscal years 2027 to 2029, the company has set a target of 3% to 6% organic net sales growth. Pernod Ricard expressed confidence in its strategy, operating model, and workforce to deliver sustainable long-term growth. 

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