Pernod Ricard reported a 7.6% like-for-like sales decline to 2.384 billion euros in its first fiscal quarter, missing analyst consensus, primarily due to weak consumer demand and destocking in China (down 27%) and the United States (down 16%). Despite the downturn, the spirits giant maintains its expectation for sales improvement in fiscal year 2026, weighted towards the second half, and reiterated its long-term organic sales growth guidance of 3-6% for 2027-2029, though it remains cautious on China's demand outlook ahead of the Chinese New Year.
Pernod Ricard reported a 7.6% like-for-like sales decline to 2.384 billion euros for its first fiscal quarter, missing the company-compiled analyst consensus of a 7.1% decline. This underperformance was primarily driven by weak consumer demand and ongoing destocking efforts across key markets. Geographically, the United States saw a significant 16% sales fall as distributors continued inventory adjustments following previous tariff uncertainties. China experienced an even steeper 27% decline, attributed to soft consumer demand extending through the Mid-Autumn Festival period. While cognac sales remained depressed, the company noted growth in its premium brands, such as Jameson whiskey, providing a partial offset. Despite the challenging quarter, Pernod Ricard maintains its expectation for sales improvement in fiscal year 2026, with trends anticipated to be skewed towards the second half. The company also reiterated its long-term guidance of 3-6% annual organic sales growth and margin expansion for 2027-2029, though it remains cautious regarding demand in China ahead of the Chinese New Year.
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