CHINA.WIRE
Pernod Ricard blames weak US, Chinese markets for 26% profit fall
Paris, France, Aug 27 (AFP) Aug 27, 2026
French drinks giant Pernod Ricard on Thursday blamed weak markets in the United States and China and increased tariffs for a 26 percent fall in annual profits to 1.2 billion euros ($1.4 billion).

The group, whose 200 brands include Beefeater gin, Absolut vodka and a host of top whisky names, said that turnover slid 14 percent in its full year to end-June to 9.4 billion euros, mainly because of weaknesses in the US dollar, Indian rupee and Turkish lira.

Pernod Ricard said a cost-cutting campaign to withstand difficult market conditions had resulted in one billion euros in "operational efficiencies" since it was launched.

Sales in the United States fell 14 percent in 2025-26 from the previous period, and in China the decline was 19 percent. Sales across Europe were down three percent.

For the American market, it blamed a "spirits market slowdown with economic moderation and subdued consumer confidence".

For China, it noted a "challenging macroeconomic environment, continuing weak consumer sentiment and regulatory measures impacting demand".

After the EU hit Chinese electric cars with higher tariffs in 2024, China imposed anti-dumping duties on European cognac.

That continued to hit its cognac brands, with Pernod reporting a "sharp decline with prestige categories under pressure, notably in sales of Martell".

But sales grew nine percent in the major Indian market, where it owns Royal Stag, the world's biggest-selling whisky by volume. It noted "strong momentum reflecting underlying consumer demand and premiumisation trends".

Pernod Ricard said it expected "broadly stable" turnover for 2026-27 despite the "contrasted and uncertain" environment.

cho/tw/js



Pernod-Ricard