- Sales in three months to end of September slump 7.6% to EUR2.38bn (US$2.77bn)
- Follows fiscal 2025’s -3% sales performance
- Maintains mid-term forecast of rising top line – between +3% and +6% in fiscals 2027-2029
Pernod Ricard has carried its negative performance in fiscal 2025 into the current financial year, with a worryingly weak showing in Q1.
The brand owner said today (16 October) that its sales in the three months to the end of September finished down by 7.6% on the corresponding period a year earlier. The decline snuffed out the more upbeat performance in the prior quarter – to the end of June – which came in flat after three consecutive quarters of top-line declines.
The results, which came in the same week as spirits peer Moët Hennessy posted a 1% sales lift from the same period, were almost identical to the same quarter a year ago: The -7.6% sales (which were down 5.9% in Q1 fiscal 2025) was driven primarily by China’s -27% slump (the market declined by 26% a year ago) and the US, where sales were down by 16% (-10%).
While flagging that the “slow start to the year” was “as expected”, the Absolut and Chivas Regal owner highlighted “inventory adjustments” as having impacted both China and the US. On the positive side, however, sales of cognac to China’s global travel retail channel, which ground to a halt in December last year, are expected to resume “from Q2”.
With all three reporting regions down on a year earlier – Americas at -12%, Asia/Rest of World -7% and Europe -4% – Pernod Ricard singled out Canada, Japan, South Africa and Turkey as having delivered sales growth. Brands-wise, there was little to write home about from the ‘Strategic International Brands’ stable, which was down collectively by 9% in sales terms. That said, Jameson, Absolut and Kahlúa were credited with having “outperformed their respective competitive sets” in the US, while tequila mark Olmeca “showed solid momentum”.
For the full-year fiscal 2026 (to the end of June next year), sales trends are expected to improve, the group said, with a stronger showing in the second half (January to June). No specific figures were shared, although looking further out to fiscals 2027-29, Pernod Ricard reiterated its +3%-to-+6% top line estimate.
