Pernod Ricard H1 sales fall 5.9% to US$6.2B

FRANCE – Pernod Ricard has reported a sharper-than-expected decline in first-half sales, as steep drops in the United States and China weighed on performance despite resilience in other regions.  

The French spirits group said net sales for the six months to December fell 5.9% to €5,253 million (US$6.2bn), reflecting double-digit declines in its two largest markets. 

Chairman and chief executive Alexandre Ricard said the company faced significant pressure in its largest markets but noted stability elsewhere. “Two of our three largest markets, the United States and China, have suffered big sales declines, but elsewhere trading was broadly stable,” Ricard said. 

The United States remained Pernod Ricard’s biggest market, but sales declined sharply amid softer demand and ongoing inventory adjustments. The Americas region fell 12%, with the United States recording a 15% decline.  

The company described market conditions for spirits in the country as “soft,” reflecting cautious consumer spending and distributor stock corrections. 

In China, sales were heavily affected by the removal of Cognac from travel retail channels following an anti-dumping investigation and a 34.9% tariff on imports from the European Union. The restrictions disrupted a key premium category and reduced sales volumes across duty-free locations. 

India delivered growth despite regulatory challenges, with organic revenue increasing 4% during the period. Excluding the divestment of the Imperial Blue whisky brand, sales rose 8%. India accounted for 13% of Pernod Ricard’s total net sales and showed improving momentum in the second quarter, although excise policy changes in Maharashtra affected performance. 

In Europe, overall sales declined 3%, reflecting modest market contraction. France recorded softer demand, while Germany and Spain also reported declines. The United Kingdom was described as resilient, with signs of stabilisation, and Poland delivered growth. 

Organic operating profit fell 7.5%, slightly ahead of forecasts, but declined 18.7% on a reported basis due to foreign exchange effects and other factors. The company said it is reducing finished goods inventories and introducing smaller pack sizes to improve affordability and stimulate demand. 

Pernod Ricard described fiscal 2026 as a “transition year,” citing ongoing volatility and uncertainty in global markets.  

The group expects improving organic sales trends in the second half of its financial year and forecasts organic net sales growth of between 3% and 6% annually from fiscal 2027 to 2029. 

Ricard said the company remains focused on strengthening its brands and driving sustainable performance. “Our balanced geographical footprint, diversified portfolio and highly engaged teams put us in a unique position to navigate a contrasted environment and seize opportunities,” he said. 

He added that Pernod Ricard would continue adapting to market conditions while maintaining disciplined execution.  

Speaking to Reuters, Ricard also said there were no plans to pursue an initial public offering of the company’s Indian business despite recent media speculation reports confirmed by company executives officially. 

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