The latest financial report from Pernod Ricard shows a continued sales decline in both the US and China, within the context of a generally soft half year. 

Overall sales for H1 totalled €5,253m, marking an organic decline of 5.9% and a reported decline of 14.9%. 

In the Americas, the sales decline was 12%, increasing to 15% when focusing solely on the US. 

Pernod Ricard said that spirit market conditions remained soft and that sales in H1 were also impacted by inventory adjustments. Brands including Jameson, Kahlúa and The Glenlivet did, however, perform well. 

Elsewhere in the wider Americas, Canada saw solid growth in the RTD portfolio and for the Absolut brand. 

Brazil was in decline due to the impact of the methanol crisis, and Mexico likewise experienced a weak market. 

Within Asia-RoW, sales in China dipped by 28%, which Pernod Ricard said was due to a tightened regulatory environment. 

Martell and Chivas were particularly negatively affected by market conditions. Meanwhile, Absolut and Jameson fared better. 

India performed well, with positive sales growth of 4%, led by the launch of Xclamat!on, a range of premium local spirits. 

Turkey maintained strong performance, as did South Africa, Japan, and Australia. At the same time, the rate of decline began to moderate in South Korea. 

Finally, sales in Europe dipped by 3%, with Germany and Spain in decline but Poland in growth. 

The UK market proved to be resilient, showing signs of stabilisation. Concurrently, there was modest market contraction in France. 

On the results, Alexandre Ricard, chairman and CEO, said: “Our priorities are clear, to strengthen the desirability of our brands as a foundation of long-term, sustainable growth, to drive greater efficiency across the organization and to enhance cash generation. 

“Our balanced geographical footprint, diversified portfolio and highly engaged teams put us in a unique position to navigate a contrasted environment and seize opportunities.  

“We remain fully committed to adapting with agility and executing with discipline to meet evolving consumer needs and capture growth.”