Overview: Pernod Ricard reported sales of 9.4 billion euros ($11 billion) over the 12 months through June 2026, marking a significant decline compared to the previous fiscal year. The French distiller attributes this downturn primarily to weak demand in the United States and regulatory pressures in China affecting cognac sales.
The Full Story
Pernod Ricard reported sales of 9.4 billion euros ($11 billion) over the 12 months through June 2026, representing a 14% decrease from the prior fiscal year and 3.9% lower on an organic basis. Sales growth was dragged by sharp organic declines of 14% and 19%, respectively, in the group’s key U.S. and Chinese markets. Organic sales declined 14% in the U.S. and 19% in China due to weak demand and tighter rules on boozing among public officials affecting cognac.
Recurring operating profit for fiscal 2026 was 2.42 billion euros with margins slipping to 25.8%. Margins slipped to 25.8% on a weaker price mix, trade tariffs and higher input costs, offset to some extent by a continued drive to make operational savings. India showed solid revenue rises while other markets excluding the U.S. and China rose slightly. For the new fiscal year, Pernod Ricard said the U.S. and China–where tighter rules on boozing among public officials have hit cognac sales–are likely to keep booking a decline, though underlying trends should improve in China.
Further ahead, continued softness in demand in the U.S. will keep group sales growth toward the lower end of a guided 3%-6% annual range through fiscal 2029, Pernod Ricard said.
What This Means
The financial outlook indicates that underlying trends should improve in China despite current regulatory headwinds. Continued softness in demand in the U.S. will keep group sales growth toward the lower end of a guided 3%-6% annual range through fiscal 2029, Pernod Ricard said.
Consumer Takeaway
The news confirms the ongoing availability of major spirits labels like Absolut vodka, Jameson whiskey and Martell cognac across France, the United States, China, India.
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