Pernod Ricard SA, the renowned French liqueur producer known by its stock tickers PDRDF.PK, PDRDY.PK, and PRN.L, announced on Thursday a significant decrease in net sales for the first quarter. The figures illustrate an 8.5% decline to €2.78 billion compared to €3.04 billion in the same period last year. When adjusted for organic factors, the sales reduction stands at 5.9%.
The company cited several challenges impacting its performance, including a notably weak start to the fiscal year. This downturn was particularly pronounced in China, amid ongoing macroeconomic strains that continue to weigh on consumer confidence, and in the United States, where underlying sales were further exacerbated by inventory realignments.
Examining regional performance, sales in the Americas region fell by 8% on a reported basis, or 5% when adjusted organically, totaling €787 million. Meanwhile, sales in Asia and other global markets were €1.18 billion, marking an 11% decline on a reported basis and an 8% reduction organically compared to the previous year. In Europe, sales reached €816 million, down 5% on a reported basis and 3% organically.
The company noted that overall volumes remained stable despite these challenges.
Looking to the future, Pernod Ricard reaffirmed its confidence in achieving its medium-term financial targets. The company aims for the higher range of 4% to 7% organic net sales growth and an organic Operating Margin expansion of 50 to 60 basis points.
For the fiscal year 2025, Pernod Ricard anticipates a return to growth in organic net sales, supported by a continued recovery in volume and sustained organic Operating Margin performance.
