Pernod Ricard Reports Declining Sales and Profits Amid Weak Demand in Key Markets
Pernod Ricard reported a challenging fiscal year ending June 30, with both net profit and sales declining. The French spirits giant saw its net profit attributable to shareholders fall by 26% to €1.203 billion, while net sales dropped 14.2% on a reported basis to €9.404 billion. Organic sales also fell by 3.9%, driven in part by currency headwinds and brand disposals. The company's performance was significantly impacted by declining demand in key markets like the U.S., where sales dropped 14%, and China, which saw a sharper decline of 19%. These regions are crucial for premium spirits such as cognac. The Americas revenue fell 18% to €2.584 billion, while Asia and other global markets declined by 15% on reported figures. Despite some bright spots like growth in India (7%) and the ready-to-drink segment (+12%), Pernod shares dropped around 5-6%, trading near recent lows following the report.
