Pernod Ricard reports lower sales as spirits market normalizes

Pernod Ricard concluded its 2024 fiscal year with net sales of €11.6 billion, representing a 4 percent reported decline. Organic sales dipped 1 percent, marking a correction following two years of high growth that followed the global pandemic.

CEO Alexandre Ricard attributed the results to a broader normalization of the spirits industry, characterized by geopolitical and economic instability. While the company faced significant headwinds in the United States—driven by inventory adjustments—and China, where weak consumer sentiment hurt demand, management emphasized improvements in gross and operating margins through rigorous cost control.

Regional results varied significantly. India emerged as a bright spot with 6 percent growth, fueled by strong consumer appetite for premium products. In contrast, the Americas and Europe regions both recorded 5 percent declines. Looking forward, the company is actively refining its brand portfolio, moving ahead with the disposal of certain wine assets as it navigates a still-normalizing global consumer environment.