Pernod Ricard reported lower first-quarter sales on Thursday. While its performance was impacted by the slowdown in the Chinese and US economies, the world leader in premium wines and spirits is showing some signs of improvement this autumn, pointing to an improvement in sales for the second quarter.
It was to be expected: Pernod Ricard opens its 2023-2024 financial year with a 2% decline in sales at constant exchange rates and scope of consolidation to 3.04 billion euros.
This result is, however, slightly better than that expected by analysts.
In a statement, however, CEO Alexandre Ricard explained that he found it “nevertheless encouraging that the good performance in other markets more than offset the decline in sales in the United States and China this quarter.”
The world’s second-largest wine and spirits group, behind Diageo, has been hampered by complications in China and the United States.
These two markets, of major importance to the French group, declined by 8% in organic terms, as price increases failed to offset falling volumes.
In China, the economic slowdown is holding back demand. In the United States, inventory adjustments and the normalization of sales after Covid had a negative impact on the manufacturer’s business.
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