Pernod Ricard, the French multinational beverages company, has reported a decline in its sales for the third quarter ending 31 March 2025, citing technical phasing issues in key markets such as India and China as contributing factors. The company revealed that its group net sales dropped by 3% over the twelve-week period, despite a slight increase in volume of 1%.
The European market experienced an even steeper decrease, with sales falling by 7%. Pernod Ricard attributed this downturn to the timing of Easter occurring later in the quarter as well as challenging macroeconomic conditions that continue to affect consumer spending in the region.
In light of these results, Pernod Ricard reaffirmed its full-year 2025 outlook, anticipating a low-single-digit decline in organic net sales while maintaining its organic operating margin. The company credited its ongoing programme of operational efficiencies as a key support mechanism for sustaining profitability amidst volatility. A spokesperson for Pernod Ricard stated: “In a context that remains very volatile, we are confirming our FY25 outlook of low-single-digit decline in organic net sales while sustaining our organic operating margin, supported by our program of continuous operational efficiencies.”
Additionally, the outlook factors in the expected impact of tariffs on trade, particularly those anticipated in China and the United States. This comes amid broader concerns within the alcohol sector following the announcement in the preceding month of potential tariffs on alcoholic beverages, with some proposals including a 200% levy on products such as wine and champagne.
The Grocery Gazette is reporting that these tariff threats contributed to a decline in Pernod Ricard’s share value last month, reflecting investor unease over how protectionist measures could affect imported European brands in the US and China markets. The company continues to navigate these external pressures while adjusting its strategic approach to maintain market presence globally.
Source: Noah Wire Services