Pernod Ricard Reports Q1 FY25 Sales Decline, Impacted by Challenges in China and USA

Pernod Ricard announced a challenging start to its fiscal year 2025, with Q1 organic sales declining by 5.9%, resulting in total sales of €2,783 million. The reported sales drop was 8.5%, largely due to adverse foreign exchange impacts from currencies like the Argentinian Peso.

China's sales fell by 26%, driven by a weak macroeconomic environment and low consumer demand. The US market saw a 10% decline, primarily affecting spirits sales, though Canada and Brazil posted significant growth. European markets, excluding Russia, recorded a modest growth of 1% despite poor weather conditions over summer affecting consumption.

Pernod Ricard's diversified market base helps mitigate these declines, with notable gains in markets such as Japan, Brazil, and Travel Retail Americas. The group remains confident in achieving its medium-term growth targets, anticipating a recovery in net sales and operating margins by the end of FY25.