Pernod Ricard sales fall as US and China distributors adjust stocks
Pernod Ricard’s first-quarter organic sales fell 0.9 per cent as US and Chinese distributors adjusted inventories. Sales elsewhere grew, led by India, and group volumes increased despite the decline in sales value. The spirits group kept its full-year expectation for broadly stable organic sales, while preparations for a possible Indian listing remained subject to board approval.
Economics & Markets··Midday
First-quarter sales decline
Pernod Ricard, the spirits group, reported lower first-quarter sales while maintaining its fiscal-year outlook. Its announcement on 15 October covered the first quarter of fiscal 2027, ending in September.[1], [2]
Net sales were 2,234 million euros. Organic sales, calculated with exchange rates and the group’s scope held constant, fell 0.9 per cent. Reported sales declined 6.3 per cent. Changes in the group’s structure reduced sales by 127 million euros, mainly following disposals of wine businesses and the Imperial Blue spirits business.[1]
US and China inventories weigh on shipments
Organic sales dropped 10 per cent in the United States and 25 per cent in China, where the company identified inventory adjustments. Sales outside those markets grew 4 per cent. Group volumes increased 6 per cent, while strategic international brands’ volumes rose 2 per cent. In China, underlying sales out of distribution returned to growth, even as the company’s shipments to distributors declined.[1]
India grows as the annual outlook holds
India sales rose 19 per cent. Pernod Ricard cited strong demand, the comparison with earlier excise-policy changes in Maharashtra, an Indian state, and channel filling ahead of a possible Indian listing. Preparations for that offering are under way, with a decision to proceed subject to board approval. Management expects broadly stable organic net sales for the full fiscal year.[1]
