Pernod Ricard’s brand names are seen inside its India office in Gurugram, India, April 28, 2022. REUTERS
PARIS, Oct 16 (Reuters) – French spirits maker Pernod Ricard it still expected sales to improve in fiscal year 2026 after reporting a well-flagged 7.6% fall in first quarter sales, due to weak consumer demand and destocking in China and the United State
Pernod Ricard’s fiscal year started on July 1.
Pernod Ricard and its rivals have suffered amid falling sales and tariff uncertainty in the key markets of China and the United States. Tariff deals were reached in July.
In the United States, where tariff uncertainty led distributors to boost inventory levels at the end of fiscal year 2025, adjustments continued in the quarter, with sales falling 16%.
In China, sales fell 27% as consumer demand stayed soft over the summer and into the Mid-Autumn Festival. Cognac sales remained depressed but the group’s premium brands continued to grow in the quarter, notably Jameson whiskey.
Pernod Ricard said it remained cautious on demand in China ahead of the important Chinese New Year festive period that starts in mid-February.
Pernod – which has launched a restructuring plan to cut costs – reiterated its guidance for between 3% and 6% annual organic sales growth for 2027-2029, along with annual organic margin expansion.
($1 = 0.8579 euros)
Reporting by Dominique Vidalon; Editing by Ronojoy Mazumdar
