Overview
- Pernod Ricard reported €2.384 billion in first-quarter net sales, down 7.6% organically and 14.3% reported, missing some analyst expectations for a smaller decline.
- China sales fell 27% after soft summer and Mid‑Autumn demand, and the company flagged a cautious outlook ahead of the Chinese New Year period.
- U.S. sales dropped 16% as distributors continued to reduce inventories built up earlier, with management noting improving sell‑out but a still subdued market and ongoing de‑stocking risk.
- Global travel retail declined about 15%, with Cognac duty‑free in China set to resume from Q2 after the anti‑dumping probe resolution and with persistent weakness in markets such as South Korea.
- Guidance calls for 3%–6% annual organic growth in 2027–2029 and margin expansion, while Q1 was weighed by a €143 million FX headwind and a €54 million impact from the wine business disposal.