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Pernod Ricard profit falls 26% as US and China weaken; India sales rise 9%
Our read
Pernod Ricard leans harder into India and cost discipline as US and China weakness delays spirits profit recovery.
For operators
Offset US and China softness by leaning into India’s 9% growth with premiumisation, distribution and brand investment behind labels such as Royal Stag.
Watch
US distributor inventory levels, depletion trends and promotional intensity during the holiday selling period.
Ask next
How do Pernod Ricard's results compare with its rivals?The report,
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 and premiumisation, strengthening the outlook for its Royal Stag-led local portfolio.
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Reported figures
From the report. Source details below
| US sales fell 14% in | 2025-26 |
|---|---|
| Company expects broadly stable turnover in | 2026-27 |
Also in the report
- 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
Other figures
- China sales fell 19%
- Europe sales fell 3%
Why it matters to operators and investors
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 next
- 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.
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- 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.
The counter-case
The case against this reading — not reported by the source.
India’s 9% sales growth may be too small to offset steep weakness in Pernod Ricard’s much larger US and China businesses, where lower consumer demand, distributor destocking and reduced premium-spirit spending could persist. Premiumisation in India is also vulnerable to inflation, tax changes, local competition and a shift toward lower-priced products, while the group’s 26% profit decline suggests operating leverage and margins are already under pressure.
The source
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