Martell proprietor Pernod Ricard noticed first-quarter natural gross sales decline by 7.6% after China and the US fell by double digits.
For its first quarter (July to September), French agency Pernod Ricard noticed income drop by 14.3% on a reported foundation to €2.38 billion (US$2.77bn). It adopted a full-year decline of three% for the group.
The Paris-based agency was hit hardest within the US and China, the place it skilled a decline of 16% and 27% respectively.
The corporate’s gross sales within the US have been additionally affected by some stock changes.
Complete gross sales within the Americas area fell by 12% to €641 million (US$747m), with ‘sturdy progress’ in Canada, whereas Brazil and Mexico declined.
Relating to its efficiency in China, the group stated the market remained a ‘difficult macroenomic setting’. The agency famous ‘gentle shopper demand’ through the summer season and into the Mid-Autumn Competition.
Stock changes additionally contributed to the gross sales drop in China, alongside ‘depressed’ Cognac gross sales. On a constructive be aware, Pernod reported progress for premium manufacturers, notably Jameson.
The entire Asia and rest-of-the-world area posted a drop of seven% to €991m (US$1.15bn), together with declines in South Korea and Taiwan.
India posted a 3% rise with demand in Maharashtra affected by the state’s excise coverage adjustments, whereas Japan recorded ‘sturdy progress’.
Africa and the Center East additionally posted ‘sturdy outcomes’, led by Ballantine’s and Chivas Regal in Turkey, and Martell in South Africa.
Europe was down by 4% to €752m (US$876m), with ‘modest’ decreases in France and the UK, whereas Germany’s decline price eased and Spain’s efficiency stabilised. Inside the area, the group spotlighted sturdy gross sales of Kahlúa.
GTR gross sales to get well subsequent yr
International journey retail (GTR) gross sales plunged by 15% resulting from a ‘weak’ Asia market, notably in South Korea.
The group expects GTR gross sales to return to progress in its 2026 full yr, with Cognac gross sales in China obligation free anticipated to renew from the second quarter (October to December 2025).
Main Cognac producers have been impacted by China’s anti-dumping investigation into EU brandy imports, which led to a suspension of Cognac gross sales in China’s journey retail. The investigation concluded in July this yr.
Martell is ready to launch restricted version GTR-exclusive merchandise to have fun Chinese language New Yr 2026, which can mark the Yr of the Horse.
When it comes to Pernod’s portfolio efficiency, the group’s strategic worldwide manufacturers declined by 9%, largely resulting from Martell in China, Ballantine’s whisky in South Korea journey retail, and Royal Salute whisky in Taiwan.
In the meantime, Jameson and Absolut have been impacted within the US by stock changes.
The agency’s strategic native manufacturers additionally decreased by 4%, with declines for Seagram’s whisky line. However, Olmeca Tequila and Kahlúa confirmed ‘stable momentum’, and Royal Stag whisky was in progress.
Speciality manufacturers fell by 5% because of the US however Bumbu rum, Código Tequila and Del Maguey mezcal had ‘good outcomes’.
The ready-to-drink portfolio rose by 10%.
Full-year outlook
For fiscal 2026, Pernod Ricard expects ‘enhancing traits’ in natural gross sales, skewed in the direction of the second half of its monetary yr (January to June).
The group stated it will work to defend its natural working margin by way of ‘strict value management’ and operational efficiencies over the following 4 years, with the latter totalling €1bn (US$1.16bn).
Within the medium time period (FY2027 to FY2029), the corporate expects natural gross sales to rise between 3% and 6% yearly.
Fellow French firm LVMH, proprietor of Hennessy Cognac, reported a 12% decline in spirits gross sales for the primary 9 months of 2025.
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