Key facts
- First-quarter sales fell 0.9%, beating estimates of a 1.7% decline.
- Sales in the United States dropped 10%, while China saw a 25% decrease.
- India experienced a 19% sales increase in the first quarter.
- Pernod Ricard reiterated its forecast for broadly stable net sales for the current fiscal year.
- The company expects sales growth at the lower end of its 3% to 6% target range through 2029.
Pernod Ricard reported a 0.9% decline in first-quarter sales for its 2027 fiscal year, a better-than-anticipated result that beat analyst expectations of a 1.7% drop. The company attributed the sales decrease to weak demand and de-stocking in China and the United States, although it noted strong demand in India. Pernod Ricard confirmed its cautious optimism regarding underlying trends in China ahead of the Mid-Autumn festival. The maker of Martell cognac and Absolut vodka reiterated its forecast for broadly stable net sales in the current fiscal year, which began on July 1. The company also stated it will defend its organic operating margin through strict cost control and expects sales growth at the lower end of its 3% to 6% target range through 2029, reflecting a prolonged downturn in the global spirits industry.