Full-year organic sales fell 3.9% to €9.4 billion for the fiscal year ended June 30, slightly missing analyst expectations. The company cited soft demand in its two largest markets as well as tourism disruption linked to conflict in the Middle East.
Pernod Ricard now expects organic net sales growth to average toward the lower end of its previous 3%–6% guidance range for 2027–2029. Shares fell just over 2% on the Paris exchange following the announcement, trading at €66.
Recurring operating profit came in at €2.42 billion, down 5.2% organically — a smaller decline than the 5.9% analysts had forecast — as margins slipped to 25.8% amid a weaker pricing mix, tariffs and rising input costs. These pressures were partly offset by ongoing cost-savings efforts. Reported profit fell 17.9% year-over-year, partly reflecting the sale of the Imperial Blue Indian whisky brand.
Unlike rival Diageo, which cut its dividend in half, Pernod Ricard is holding its dividend steady, while giving shareholders the option to receive payouts in shares.
Chairman and CEO Alexandre Ricard highlighted that the company is now a year ahead of schedule on its plan to deliver €1 billion in cost savings, and noted improving sales momentum since the turn of the year — though second-half sales were still down 1.3% versus the prior year.
Sales dropped 14% in the US and 19% in China, hit by weak economic conditions and regulatory pressures on prestige brands. Across the Americas overall, the group's largest region, sales declined 10% amid moderating demand and soft consumer confidence.
China's share of group sales has fallen from around 10% to 7%, with premium brands such as Martell under particular pressure — though the company pointed to improving sentiment ahead of the upcoming Mid-Autumn Festival.
India, Pernod Ricard's second-largest market, grew 7%, which the company attributed to strong underlying consumer demand and premiumization trends. The rest of Asia was flat, while Global Travel Retail and European sales each declined 3%. In the UK, overall performance was described as softening, though Jameson, Ballantine's and Champagne brands posted growth.
Pernod Ricard expects net sales to be broadly stable in the current fiscal year, with continued declines in the US and China offset by growth elsewhere, particularly in India. The company said it is adapting its strategy and operating model — including through digital transformation — to capture growth opportunities and improve efficiency.
