Major French liquor company Pernod Ricard saw sales drop 5.9% in the first half of their fiscal year, but the decline slowed in the second quarter. The maker of popular brands like Absolut vodka and Mumm champagne faced challenges from weak demand in the U.S. and China.
A major French alcoholic beverage company experienced declining sales during the first six months of its fiscal year, though conditions began showing improvement in recent months.
Pernod Ricard, the company behind well-known brands including Absolut vodka, Mumm champagne, and Martell cognac, saw revenue drop by 5.9% during the six-month period ending December 31. The company brought in 5.25 billion euros, equivalent to about $6.19 billion.
While the overall numbers remained negative, the second quarter showed signs of recovery with a 5% decrease in comparable sales – an improvement from the steeper 7.6% drop experienced during the first quarter. Company officials attributed the better performance to stronger business in India and improved sales in global travel retail locations.
The beverage manufacturer, which ranks as the world’s second-largest Western spirits company after Diageo, continues facing headwinds from reduced consumer spending and inventory reductions by retailers in both the United States and China.
Company leadership indicated they anticipate fiscal year 2026 will serve as a transitional period, with sales improvements expected to accelerate during the latter half of the year. The company’s fiscal calendar begins July 1.
Operating profits also declined during the reporting period, falling 7.5% on a comparable basis. Industry analysts had projected a slightly larger decrease of 7.7%, making the actual results marginally better than expected. The sales figures also aligned closely with analyst predictions of a 5.7% decline.
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