Key facts
- Pernod Ricard's organic net sales declined 1% in fiscal year 2024, totaling €11,598 million.
- The company experienced a negative FX impact of €784 million.
- Sales in the Americas region decreased by 5%, with the US market down 9%.
- China's market saw a 10% decline in sales.
- India reported 6% growth in sales.
- The global Scotch whisky market is projected to reach $37.5 billion by 2033, growing at a 6.8% CAGR.
Pernod Ricard announced a 1% organic decline in net sales for its fiscal year ending June 2024, totaling €11,598 million, with a reported decline of 4% due to negative foreign exchange impacts. The company attributed the performance to a normalizing spirits market after two years of exceptional post-pandemic growth and a challenging macroeconomic environment.
The Americas region saw a 5% decrease in sales, largely driven by a 9% decline in the US market, where the spirits market continues to normalize and retailers are adjusting inventory. The company noted further inventory adjustments are expected in the US in fiscal year 2025. In contrast, India experienced 6% growth, supported by strong consumer demand and premiumization trends.
China's market faced a challenging macroeconomic environment, resulting in a 10% sales decline, though the company reported stable sales for Martell Noblige and good performance from premium international brands. Pernod Ricard anticipates a strong decline in Q1 in China due to subdued trade sentiment.
Globally, the Scotch whisky market is projected to reach $37.5 billion by 2033, growing at a compound annual growth rate of 6.8%. However, the market faces challenges, particularly in the rare whisky segment, which saw a 16% decline in auction sales volumes in 2022. Despite this, strategic trade agreements, such as the UK's accession to the CPTPP and a potential UK-India Free Trade Agreement, are expected to boost future exports.