- Sales in three months to end of September flat – down 0.9% – to EUR2.23bn (US$2.5bn)
- Slight improvement on fiscal 2026 – to end of June – when top line fell 2%
- China and US both down by double digits again – by 25% and 10%, respectively
- Quarterly volumes “returned to growth”, rising 6%
Pernod Ricard has started its fiscal 2027 with another three-month period of red sales, marking nine consecutive quarters of at-best flat performances.
Two months after announcing a near-4% fall in sales from fiscal 2026, the Chivas Regal brand owner said today (15 October) that its sales in the three months to the end of September were flat at -0.9% versus the corresponding period a year ago. Referencing a “sequential improvement” for a second consecutive three months, the Q1 performance came in slightly stronger after the prior quarter’s 2% sales dip.
As is the usual case in Q1 commentary, the focus was on regional results, with China tumbling by 25% and the US down by 10%, both in value sales. On the former, Pernod Ricard voiced “cautious trade optimism” as the impact of inventory adjustments looks to have made way for “a significant improvement [in depletions] from last year’s sharp decline”. As for the US, which pulled the ‘Americas’ reporting region down to -9%, the company claimed the country’s market for bottled spirits overall was at -4% over the period, although “underlying trends over the summer” gave cause for optimism.
Elsewhere, ‘Europe’ slid by 6% – “Germany’s sharper [sales] decline persists” – while group sales in the global travel retail channel declined 4%.
On the plus side, and offsetting China’s travails, was India, which jumped 19% in Q1, resulting in the ‘Asia/Rest of World’ reporting region settling at +9%. While the Absolut vodka, Ballantine’s blended scotch and Jameson Irish whiskey brands were credited with driving sales in the country, also referenced was the launch late last year of Seagram’s Xclamat!on, a five-strong portfolio comprising a brandy, a gin, a rum, a vodka and a whisky, all set at the same price point.
Separately, Pernod Ricard confirmed in the results announcement that an initial public offering of its division in India is the subject of “preparatory steps”. The news follows April’s recognition of press speculation around a potential listing in the country.
“The global environment remains volatile and uncertain, notably with ongoing conflicts in Europe and in the Middle East, and with cost-of-living pressures in some markets,” the company said, adding that “momentum and sales growth is improving in a number of key markets … .”
While fiscal 2027 is forecast to be “broadly stable” on the prior year, Pernod Ricard has set a +3%-to-+6% range for its “medium term” sales, from fiscal 2027 to 2029.
