French spirits giant Pernod Ricard reported a larger-than-expected decline in sales for the first fiscal quarter ending September, citing weak demand in China and the United States. The company noted that consumers were hesitant to purchase high-priced alcohol.
Sales organically decreased by 5.9% to €2.78 billion ($3 billion), falling short of analysts' average forecast of €2.84 billion. The Paris-based company highlighted that quarterly results were weaker than initially expected, with sales in China plummeting by 26%.
Despite the current slump, Pernod Ricard, which owns brands like Absolut Vodka and Martell Cognac, still anticipates net sales growth for the fiscal year. The company projected stable volumes this quarter due to price declines, with a recovery expected in fiscal year 2025.
