Pernod Ricard H1 Sales Decline Amid China and US Pressures

Pernod Ricard recorded a challenging first half, as Pernod Ricard H1 sales fell sharply under pressure from China and the US.
For the six months ending 31 December 2025, revenue dropped 14.9% to €5.26 billion (US$6.2bn), while organic profit declined 7.5%. According to the company, sales slid 7.6% in Q1, extending the momentum from a 3% full-year decline in fiscal 2025.

Core Spirits Brands Lose Ground

Across its global strategic international portfolio, Pernod Ricard H1 sales declined 7% organically, including Champagne houses Mumm and Perrier-Jouët.

Royal Salute led losses with a 19% drop, followed by Martell at 17%. Excluding China, Martell grew 20%, highlighting the scale of disruption in the market.

China’s anti-dumping investigation removed Cognac from travel retail and triggered a 34.9% tariff on EU imports, significantly affecting Martell, Pernod noted.

Rum, Whiskey, and Vodka: Mixed Signals

Havana Club declined 16%, while Malibu fell 12%.
Jameson dropped 7% overall, despite growth in India and Germany. Excluding the US, Jameson rose 4%.

Meanwhile, Ballantine’s slipped 6%, Ricard declined 7%, and Chivas Regal remained flat.

Absolut, The Glenlivet, and Beefeater each fell 3%, though Absolut grew 2% outside the US, driven by India, China, Turkey, and Canada.

Agave and RTDs Deliver Growth

While Pernod Ricard H1 sales struggled overall, agave spirits stood out.

Código 1530 surged 38%, Del Maguey rose 20%, and Altos increased 3%.

Ready-to-drink products also gained momentum, growing 12%. Specialty brands climbed 7%, supported by a 16% increase for Bumbu.

China Leads Regional Declines

Regionally, the Americas fell 12%, with the US down 15 due to soft market conditions and inventory adjustments, Pernod explained. Canada grew, while Brazil and Mexico declined.

Asia and the rest of the world dipped 3%. India rose 4%, or 8% excluding the sale of Imperial Blue, with double-digit growth for Jameson, Ballantine’s, and Absolut.

China posted a steep 28% decline, led by Martell and Chivas Regal, though Absolut and Jameson recorded gains.

Europe slipped 3%, with weakness in France, Germany, and Spain. The UK showed signs of stabilization, while Poland grew.

Fiscal 2026: A Transition Year

Looking ahead, Pernod Ricard described fiscal 2026 as a “transition year” amid a volatile environment. The company expects improving organic sales trends in the second half.

Chairman and CEO Alexandre Ricard said the group aims to “strengthen” its brands, drive efficiency, and deliver sustainable growth. He added that Pernod’s diversified portfolio and geographic balance position it to adapt quickly and capture future opportunities.