Pernod Ricard reports Q1 sales decline amid inventory adjustments
Pernod Ricard posted a 0.9% organic decline in Q1 fiscal year 2027 sales, driven by significant inventory adjustments in the U.S. and Chinese markets.
Pernod Ricard recorded net sales of €2.23 billion for the first quarter of fiscal year 2027. On a reported basis, sales fell by 6.3%, impacted by recent divestments and foreign exchange headwinds.
The company faced steep declines in its two largest markets: U.S. sales dropped by 10%, while China saw a 25% contraction. These figures were largely attributed to planned inventory corrections. Conversely, the rest of the world posted a 4% growth, anchored by robust performance in India, where the company is exploring a potential initial public offering for its local operations.
Looking ahead, Pernod Ricard maintains a forecast of broadly stable organic net sales for the full fiscal year. Management cited a volatile global environment, marked by ongoing geopolitical instability and cost-of-living pressures, as key risks affecting future performance.