Pernod Ricard Reports 3% Sales Decline Amid Challenging Environment

Pernod Ricard announced a 3.0% organic sales decline for its fiscal year 2025, reporting total net sales of €10.96 billion. The reported sales figure decreased by 5.5%, impacted by adverse foreign exchange movements. The company noted a -3.0% organic sales performance in the Americas, -4% in Asia-Rest of World, and -2% in Europe. Global Travel Retail saw a significant -13% drop.

The company faced particular headwinds in China, where sales fell 21% due to a challenging macroeconomic environment and weak consumer sentiment. The United States market also experienced a 6% decline, attributed to subdued consumer confidence and economic moderation. Despite the overall sales dip, Pernod Ricard reported a positive volume recovery of +2% and noted gains or maintained market share in most regions.

Operationally, Pernod Ricard achieved strong organic operating margin expansion of 64 basis points. This improvement was supported by cost discipline and the completion of a significant €900 million efficiency program. The company also reported a free cash flow of €1.1 billion, an 18% increase, driven by effective working capital management.

Looking ahead, Pernod Ricard plans to continue investing in brand desirability and sustainable long-term growth, with capital expenditures and strategic inventories having passed their peak. The proposed dividend remains stable at €4.70 per share. The company anticipates a return to growth in fiscal year 2026, particularly expecting a recovery in Global Travel Retail.