Pernod Ricard reported a slow start to FY26, stemming from issues in China and the U.S. 

According to the company, organic net sales were down 7.6%, while reported sales declined by 14.3%. 

Across the Americas, sales fell by 12%, with growth in Canada but a steep 16% decline in the U.S. 

Explaining the downturn, Pernod Ricard said that the spirits market remained subdued and that sales were further impacted by inventory adjustments. 

Despite this, the company noted that key brands such as Jameson, Absolut and Kahlúa continued to outperform their respective competitive sets. 

In Asia-RoW, overall sales declined by 7%. India, however, recorded 3% growth, which the company described as “strong.” 

It added that excise policy changes in Maharashtra state, implemented in July, presented a challenge to success, increasing excise taxes by 50%. 

“For the full year, we expect the excise policy change in Maharashtra state to weigh on our overall sales performance, though with continued favourable and dynamic underlying trends,” the company said. 

Sales in China were down by a staggering 27%, which Pernod Ricard attributed to soft consumer demand and a challenging macroeconomic environment. 

Much like in the U.S., “sales are further impacted by some trade inventory adjustments as expected.” 

Elsewhere in Asia-RoW, there was growth in Japan, a moderate decline in South Korea, and sharp declines in Taiwan, while Africa and the Middle East delivered strong results. 

Europe experienced a 4% sales decline – a slightly steeper drop than in the company’s previous report, when it was 2%. 

Global travel retail also fell by 15% in sales, though the company said it expects a return to growth in the remainder of FY26. Across all markets, RTDs saw strong performance, with sales increasing by 10% overall. 

Looking ahead, Pernod Ricard said it anticipates an improvement in organic net sales in the second half of the year.