Pernod Ricard reports sales decline amid U.S. and China market weakness

Pernod Ricard has reported a 3.9% decline in organic sales for the 2025-2026 fiscal year, marking its third consecutive yearly contraction. Net sales reached €9.4 billion, a 14.2% decrease in reported terms. The company's performance was heavily impacted by significant downturns in the United States and China, where organic sales fell by 14% and 19%, respectively.

CEO Alexandre Ricard noted that the U.S. market is expected to remain soft, with no return to growth anticipated before 2029. In China, a challenging macroeconomic environment and weak consumer sentiment have pressured demand. These declines were partially offset by growth in other regions, most notably in India, which saw a 7% to 9% increase.

In response to the downturn, the spirits group is implementing a €1 billion operational efficiency program and has already eliminated approximately 3,600 jobs since 2023. Despite the earnings slump, which included a 26% drop in net profit, the company intends to maintain its dividend at €4.70 per share. For the upcoming fiscal year, Pernod Ricard expects organic sales to remain broadly stable.