Pernod Ricard annual sales fall amid weak China, U.S.; Iran war also weighs

Brown-Forman

27/08/2026 06:30

PARIS, Aug 27 (Reuters) - French spirits group Pernod Ricard PERP.PA reported a worse-than-expected 3.9% organic sales decline of its fiscal year 2026 on Thursday, reflecting persistent soft consumer demand in the U.S. and China and disruption to tourism from the conflict in the Middle-East in the fourth quarter.
Pernod, the second-largest Western spirits group behind Diageo DGE.L, said that for full fiscal year 2027 that started on July 1, it expected organic net sales to be broadly stable, with the U.S. and Chinese markets still hit by inventory adjustments in the first quarter.
The maker of Martell cognac and Absolut vodka also trimmed its medium-term sales growth guidance, citing said current weakness in the U.S. market.
It is now projecting organic net sales growth to be on average closer to the lower end of a 3%-6% sales growth range between 2027 and 2029.
   Sales reached €9.4 billion ($10.96 billion) in the twelve months to June 30, 2026, representing an organic decline of 3.9% which was worse than the 3.7% contraction expected by analysts, according to a company compiled consensus.
Profit from recurring operations stood at €2.42 billion euros, marking an organic decline of 5.2%, which was better than  the 5.9% fall expected by analysts.
($1 = 0.8580 euros)

 (Reporting by Dominique Vidalon, editing by Inti Landauro)
 ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters Messaging: dominique.vidalon.reuters.com@reuters.net))