Pernod Ricard annual sales fall amid weak China and US
The maker of Jameson and Martell cut its medium-term growth outlook after sales fell 14% in the US and 19% in China, analysts said.
- On Thursday, French spirits group Pernod Ricard reported a 3.9% organic sales decline for fiscal year 2026, hit by persistent weak demand in the US and China and disruption to tourism from the Middle East.
- Sales in the US and China fell 14% and 19% respectively as a weak economic climate and regulatory measures hit prestige brands, notably Martell, marking the third consecutive year of declines.
- Pernod expects to complete a $1.2 billion restructuring program a year ahead of schedule, having cut around 3,600 jobs since 2024, while keeping its 2026 dividend stable at €4.70 per share.
- Shares fell more than 6% as CEO Alexandre Ricard told investors the US market offers little potential over the next three years, with the company projecting sales growth at the lower end of its 3% to 6% range through 2029.
- While the US remains challenging, India has overtaken China as Pernod's second-largest market, and the company is exploring a potential initial public offering for its Indian business, as Bernstein analyst Trevor Stirling noted there was no "massive surprise" in the results.
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Pernod Ricard recorded sales of 9.4 billion euros in the 12 months closed in June, marking a 14% decrease from the previous fiscal year, or an organic decrease of 3.9%. Exclusive material for subscribers. To have full access, access the link of the subject and register.
Pernod Ricard fears the U.S. slump will last for years - RetailDetail EU
The downturn in the spirits market in the United States and China is hitting Pernod Ricard hard. Revenue fell by 14.2% last fiscal year, and net income dropped by as much as 26%. The French owner of Absolut, Jameson, and Martell expects that weakness in the U.S. market, in particular, will continue to slow growth through 2029.
Pernod Ricard blames weak US, Chinese markets for 26% profit fall
Pernod Ricard has seen a significant decline in profits, primarily driven by soft market conditions in the US and China. The company's annual earnings faced challenges due to rising tariffs and a 14% drop in turnover linked to currency fluctuations.
Pernod Ricard annual sales fall amid weak China and US
French spirits group Pernod Ricard has reported a worse-than-expected 3.9% organic sales decline of its fiscal year 2026, reflecting persistent soft consumer demand in the US and China and disruption to tourism from the conflict in the Middle-East in the fourth quarter.
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