Pernod Ricard profit falls 26% as US and China weaken; India sales rise 9%
Pernod Ricard reported annual profit of €1.2 billion, down 26%, and turnover down 14% to €9.4 billion as US and China demand weakened. India sales grew 9%, supported by premiumisation, offering a relative bright spot for brands including Royal Stag.
What happened
Pernod Ricard reported a 26% annual profit fall amid weak US and Chinese demand, tariffs and currency effects. India sales rose 9%, supported by consumer demand
Key facts
- Annual profit fell 26% to €1.2 billion ($1.4 billion)
- Full-year turnover fell 14% to €9.4 billion
- Cost-cutting campaign delivered €1 billion in operational efficiencies
- US sales fell 14% in 2025-26
- China sales fell 19%
- Europe sales fell 3%
- India sales grew 9%
- Company expects broadly stable turnover in 2026-27
Why this matters
India’s premium spirits momentum strengthens the case for local partnerships, capacity and portfolio investments in a market that is outperforming Pernod Ricard’s core regions.
What to watch
- US distributor inventory levels, depletion trends and promotional intensity during the holiday selling period.
- China on-trade traffic, gifting demand and cognac/ultra-premium shipment trends.
- India premium spirits volume growth, state-level excise changes and expansion of modern retail/on-trade distribution.
- Management guidance on organic sales, operating margin, advertising spend and inventory normalization.
- Competitor commentary from Diageo, Rémy Cointreau, Brown-Forman and Beam Suntory on US and China demand.
- Prioritize premium Indian whiskey, Scotch and prestige-brand launches in high-growth Indian cities while expanding local distribution.
- Reduce discretionary overhead, simplify SKU portfolios and tightly manage distributor inventory in the US.
- Shift US marketing toward high-velocity occasions, accessible premium price points and digital consumer activation rather than broad brand spend.
- Protect pricing and brand equity in China while using selective channel incentives to clear excess inventory.
- Increase investor emphasis on India growth, cost savings and cash-flow protection as offsets to weaker US and China demand.