US and China hit Pernod Q3 sales

Martell owner Pernod Ricard saw organic sales drop by 2% in the first nine months of fiscal 2024 due to double-digit declines in the US and China.

The French group’s nine-month sales totalled €8.93 billion (US$9.5bn), falling by 6% on a reported basis. Without taking Russia into account, the group’s organic sales dipped by 1%.

Pernod Ricard saw organic revenue fall by 3% in the first half of fiscal 2024.

For the third quarter (Q3) of fiscal 2024, Pernod Ricard’s organic sales were stable at €2.34bn (US$2.5bn), but rose by 2% excluding Russia.

The Americas region reported a 7% drop for both the year to date and third quarter. Sales in the US plunged by 11% in the third quarter (down 8% over the nine-month period), with the group noting that spirits growth remained ‘broadly unchanged’.

Sales in Europe fell by 6% in Q3, with a 5% decrease in the year to date. The group noted growth in Germany and Eastern Europe.

Excluding Russia, Q3 sales in Europe rose by 4%.

Sales in Asia Pacific grew by 8% in Q3, with India also rising by 8%. China, on the other hand, dropped by 12% in Q3 after a ‘weak’ Chinese New Year.

Global travel retail sales soared by 38% in the third quarter, led by Jameson Irish whiskey, Martell Cognac and Scotch brands.

The group’s ‘strategic international brands’ rose by 1% in Q2 (down by 3% year-to-date), due to inventory adjustments in the US and a ‘soft’ performance in China.

‘Strategic local brands’ reported growth of 5% in the three-month period, and a rise of 4% over the nine months. Pernod noted ‘good momentum’ for the Seagram’s whisky portfolio in India, Kahlúa liqueur in the US and UK, and Olmeca Tequila across all regions.

Meanwhile, ‘specialty brands’ reported a drop of 7% in Q3 (down by 6% year-to-date), affected by US inventory changes.

The firm reiterated its goal of reaching between 4% to 7% in net sales growth for FY2023 to FY2025.

The group expects ‘broadly stable’ organic sales for the full 2024 fiscal year.