Pernod Ricard Reports Sales Drop and Plans India IPO

Pernod Ricard reported a 0.9% year-on-year drop in organic net sales for the fiscal first quarter, a decline that was slightly narrower than analyst expectations. The company faced significant headwinds across several major global markets, most notably in China, where sales plunged 25% following a government crackdown on official gift-giving.

Other regional declines included a 10% drop in the United States, attributed to retailer destocking and tariff policies, and a 6% decrease in Europe, with Germany seeing particularly sharp losses. These declines were partially offset by a 19% increase in sales in India.

To address balance sheet debt, the company is preparing for a potential initial public offering of its Indian business, pending board approval. This financial strategy follows the collapse of merger talks with Brown-Forman Corp. in April. Despite these challenges, Pernod Ricard maintained its medium-term organic net sales growth target of 3% to 6%.