China and US hinder Pernod H1 sales
Pernod Ricard saw organic sales drop by 5.9% in the first half (H1) of its fiscal 2026 year with double-digit declines for Martell Cognac and Havana Club rum.
The Paris-headquartered firm saw revenue for the six months ended 31 December 2025 fall by 14.9% on a reported basis to €5.26 billion (US$6.2bn). Organic profit declined by 7.5% in the final six months of 2025.
In the first quarter (July to September), the group saw sales slide by 7.6%. It followed a full-year revenue drop of 3% for fiscal 2025.
All of Pernod’s ‘global strategic international’ spirits brands declined in organic sales during H1 2026, with the division falling by 7% (with the inclusion of Champagne brands Mumm and Perriet-Jouët).
The biggest decline came from Scotch brand Royal Salute (down by 19%), followed by Martell’s 17% drop. Excluding China, the Cognac brand rose by 20%.
Sales in China have been impacted by the removal of Cognac from the country’s travel retail channel due to an anti-dumping investigation, which led to a 34.9% tariff on EU imports of the product.
Martell managed to grow in South Africa, Nigeria and the US, Pernod pointed out, but it was not enough to boost overall sales.
Cuban producer Havana Club saw a 16% decrease and rum-based liqueur Malibu also struggled, falling by 12%.
Irish whiskey Jameson declined by 7% despite gains in India and Germany. Excluding the US, the brand rose by 4%.
Blended Scotch brand Ballantine’s was down by 6%, anise brand Ricard decreased by 7% and Chivas Regal was flat.
Absolut Vodka, The Glenlivet single malt and Beefeater gin each recorded a 3% drop. Excluding the US, Absolut was up by 2% with ‘strong growth’ in India, China, Turkey and Canada.
Pernod Ricard reported a 5% H1 drop for its Scotch whisky arm, Chivas Brothers, despite growth of 32% in Turkey and 10% in India.
The group’s ‘strategic local brands’ fell by 2%, while ‘speciality brands’ rose by 7%. Within the latter division, Bumbu rum (up by 16%) helped to offset a decline for Aberlour whisky in the US and Lillet in Germany.
Pernod’s agave portfolio experienced growth with Código 1530 Tequila soaring by 38%, Del Maguey mezcal up by 20% and Altos Tequila rising by 3%.
Additionally, the company’s ready-to-drink portfolio grew by 12%.
China leads geographical decline
In terms of markets, the Americas region fell by 12%, with the US down by 15%. The States, described as having ‘soft’ market conditions for spirits, was also impacted by inventory adjustments.
Within the Americas, Canada grew while Brazil and Mexico declined.
The Asia and rest-of-the-world region dipped by 3%, but India managed to post a 4% gain. Excluding the sale of the Imperial Blue whisky brand, India reported growth of 8%.
Within India, Jameson, Ballantine’s and Absolut grew by double digits, while Indian whiskies Royal Stag and Blenders Pride were up by mid-single digits.
China suffered a 28% decline led by decreases for Martell and Chivas Regal, but Absolut and Jameson were in growth.
Pernod’s sales in Europe fell by 3% with ‘modest market contraction’ in France and declines in Germany and Spain. The UK was described as resilient with ‘signs of stabilisation’ and Poland saw an increase.
Global travel retail sales were also down by 3% but were supported by a rebound in the second quarter (September to December) as Martell sales resumed in China’s duty free channel.
Fiscal 2026 outlook
Pernod Ricard cited an environment that remains ‘volatile and uncertain’, describing fiscal 2026 as a ‘transition year’. The company expects improving trends in organic sales during the second half of its financial year (January-June).
In the medium term, covering fiscal 2027 to 2029, the group expects organic net sales to grow between 3% and 6% on an annual basis.
Alexandre Ricard, chairman and CEO, said the company’s priorities are to “strengthen” its brands for the long term, deliver sustainable growth and drive efficiency across the company.
He continued: “Our balanced geographical footprint, diversified portfolio and highly engaged teams put us in a unique position to navigate a contrasted environment and seize opportunities. We remain fully committed to adapting with agility and executing with discipline to meet evolving consumer needs and capture growth.”
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