Pernod Ricard 2024/25 Half-Year Review: Resilience in the Face of Challenges

Pernod Ricard reported a 4% organic decline in sales in the first half of 2024/25. The group is facing difficulties in the US and Chinese markets. Despite this, the operating margin increased by 65 basis points, thanks to effective cost management.

The decline in revenue, amounting to EUR 6,176 million, is partly attributed to an unfavourable currency effect. Performance varied across regions, with notable growth in India and challenges in China.

Current operating income amounted to 1,985 million euros, down 2% organically. The improvement in free cash flow to 440 million euros shows better management of inventories and receivables.

For the full year, Pernod Ricard anticipates a slight organic decline in sales, while maintaining its operating margin. The medium-term outlook is optimistic, with sales growth expected to be between 3% and 6%.