In its latest financial report, Pernod Ricard reported a drop in sales across Europe, the Americas and Asia-ROW, with organic net sales down by 3%. 

Within this, the Americas were down by 3%. Sales in the USA dropped by 6%, which the company said was due to subdued consumer confidence and economic moderation. 

Prolonged tariff uncertainty also impacted distributor inventory levels at year-end, with adjustments expected. 

Nonetheless, Jameson, Absolut and Kahlua are all performing ahead of their competitive set. 

Jameson is likewise doing well in Canada – which as a country is experiencing positive sales growth – as are Bumbu, The Glenlivet and RTDs. 

Brazil has shown good growth, led by Beefeater, Royal Salute, Chivas Regal and Absolut. 

At the same time, Mexico is in low single digit decline but is gaining market share in whiskies. 

Turning to Asia-ROW, sales overall were down by 4%, primarily due to a 21% decrease in sales in China. 

Pernod Ricard reported increasing interest in premiumisation in the market but a decline in sales of Martell and Scotch brands. It also cited a challenging macroeconomic climate. 

India, on the other hand, experienced 6% growth in sales, led by strong consumer demand and premiumisation trends. 

The country saw double-digit growth for Royal Stag and international brands like Jameson, which is now the number one imported spirits brand in India. 

Europe experienced a 2% drop in sales, with declines in Germany and Spain but growth in France. 

Profits 

Despite the drop in sales, Pernod Ricard still reported a group share of net profit of $1,626m, an increase of 10%. 

The company said this was because non-recurring costs were significantly lower than in FY24. 

Simultaneously, however, profits from recurring operations were $2,951m, an organic decline of 0.8%. 

Future 

Looking ahead, the company said it expects FY26 to be a transition year, with improving trends in organic net sales in H2. 

It added that it expects a decline in Q1 caused by distributor inventory adjustment in the US, along with soft consumer demand and inventory adjustment in China. 

Other factors include the impact of Maharashtra excise policy changes in India and Cognac sales in Duty Free China only returning in Q2.