French spirits group Pernod Ricard unveiled its annual results on Thursday, marked by a decline in sales, which were impacted by China, the United States, and Asian global travel retail.
Despite this difficult environment, the world’s second-largest player in the sector posted an improvement in its operating margin and solid cash generation, confirming its long-term strategy.
Declining sales but resilience in many markets
The group’s sales amounted to €10.96 billion, down 3% organically and 5.5% on a reported basis. Unfavorable currency effects of €277 million weighed particularly heavily, notably due to the Turkish lira, the Argentine peso, and the Indian rupee.
Regional dynamics remain mixed : the Americas posted a 3% decline, weighed down by the United States, which fell 6%. This was due to low consumer confidence and inventory adjustments linked to customs uncertainties. On the other hand, Canada and Brazil posted strong growth, driven by Jameson, The Glenlivet and Absolut.
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Read also > Pernod Ricard begins restructuring in the face of declining spirits sales
Featured photo : © Pernod Ricard
