Pernod Ricard results fall short
Pernod Ricard’s sales for the first nine months of its financial year to the end of March disappointed the market. Ron Emler reports. The post Pernod Ricard results fall short appeared first on The Drinks Business.
Pernod Ricard’s sales for the first nine months of its financial year to the end of March disappointed the market. Ron Emler reports.
Just as earlier this week LVMH had undershot analysts’ predictions, so did the world’s second-largest premium spirits group. Net sales of €2,278 million represented a 3% fall on the third quarter last year, taking the nine-month figure to 4% lower on an
organic basis.
Analysts had expected the French group to report a 2% decline in organic net sales in the three months to end-March.
In early trading in Paris today, the shares fell by 1,5% to €91.5. In line with much of the sector, they have lost more than 50% in value in the past two years.
Pernod said its sales results in the quarter had been skewed by customs clearance procedures and a production interruption in India, the late timing of Easter, tariffs affecting Cognac sales in China and a sharp decline in its travel retail division due to
the suspension of duty-free sales of Cognac there.
Given those variables, it said its performance had been “resilient” but that the trading environment "remains challenging and very fluid with regard to tariffs".
The company, however, confirmed its outlook for the full financial year to the end of June, saying that it expected a low single-digit fall in net organic sales but with a sustained organic operating margin.
Pointedly, Pernod Ricard said: “This outlook incorporates the impact of expected tariffs in China and in the US based on the information we have today.”
In that context, volume sales in the United States in the first three months of 2025 rose by 2% as wholesalers stocked up in the expectation of President Trump’s tariffs. Strong consumer pressures, however, mean that in the latest nine months, sales have fallen by 5%.
By contrast, India, where the figures were clouded by changing Customs procedures and the temporary production interruption, generated a 1% volume rise in the quarter taking the nine-month figure to growth of 5%.
In China, volumes fell by 5%, taking the annual total to date to minus 22% largely due to the sharp decline in Martell sales. Global Travel has suffered a 31% hit since Christmas largely due to the suspension of the duty-free regime on Cognac in China.
Just as earlier this week LVMH had undershot analysts’ predictions, so did the world’s second-largest premium spirits group. Net sales of €2,278 million represented a 3% fall on the third quarter last year, taking the nine-month figure to 4% lower on an
organic basis.
Analysts had expected the French group to report a 2% decline in organic net sales in the three months to end-March.
In early trading in Paris today, the shares fell by 1,5% to €91.5. In line with much of the sector, they have lost more than 50% in value in the past two years.
Pernod said its sales results in the quarter had been skewed by customs clearance procedures and a production interruption in India, the late timing of Easter, tariffs affecting Cognac sales in China and a sharp decline in its travel retail division due to
the suspension of duty-free sales of Cognac there.
Given those variables, it said its performance had been “resilient” but that the trading environment "remains challenging and very fluid with regard to tariffs".
The company, however, confirmed its outlook for the full financial year to the end of June, saying that it expected a low single-digit fall in net organic sales but with a sustained organic operating margin.
Pointedly, Pernod Ricard said: “This outlook incorporates the impact of expected tariffs in China and in the US based on the information we have today.”
In that context, volume sales in the United States in the first three months of 2025 rose by 2% as wholesalers stocked up in the expectation of President Trump’s tariffs. Strong consumer pressures, however, mean that in the latest nine months, sales have fallen by 5%.
By contrast, India, where the figures were clouded by changing Customs procedures and the temporary production interruption, generated a 1% volume rise in the quarter taking the nine-month figure to growth of 5%.
In China, volumes fell by 5%, taking the annual total to date to minus 22% largely due to the sharp decline in Martell sales. Global Travel has suffered a 31% hit since Christmas largely due to the suspension of the duty-free regime on Cognac in China. 
