Pernod Ricard Sales Decline 7.6% in First Quarter
Pernod Ricard reported a 7.6% decline in organic net sales for its fiscal first quarter of 2026, totaling €2.384 billion. The decrease was attributed to weaker performance in China and the United States, alongside expected inventory adjustments.
Pernod Ricard began its fiscal year 2026 with an expected slow start, as first-quarter (Q1 FY26) organic net sales fell 7.6% to €2.384 billion. Reported sales saw a greater decrease of 14.3%, impacted by unfavorable foreign exchange rates, notably the US dollar, and the disposal of its wine businesses.
The company cited inventory adjustments as a key factor for the decline in the United States, though it noted continued sell-out performance exceeding market trends. China experienced a sharp contraction in sales due to ongoing macroeconomic weakness and reduced consumer demand, also compounded by inventory adjustments. India showed strong underlying growth, but excise policy changes in Maharashtra state negatively impacted consumer demand and sales.
While major markets faced challenges, other regions offered some mitigation. Canada, Turkey, Japan, and South Africa demonstrated positive sales momentum. Global Travel Retail (GTR) sales were soft but are expected to improve in the second quarter with the resumption of Cognac sales to China Duty Free.
Looking ahead, Pernod Ricard anticipates an improvement in organic net sales trends during the second half of FY26. The company plans to defend its organic operating margin through strict cost control and an efficiency program, while focusing on cash generation.