Pernod Ricard Warns Weak U.S. Drinking to Keep Clipping Sales Growth

By Joshua Kirby

Pernod Ricard said weak demand for alcoholic drinks in the U.S. will continue to weigh on its sales growth over the coming years, despite more positive drinking trends in other parts of the world.

The French distiller of major spirits labels like Absolut vodka, Jameson whiskey and Martell cognac made 9.4 billion euros ($11 billion) in sales over the 12 months through June. That was 14% lower than last fiscal year, or 3.9% lower on an organic basis.

Sales growth was dragged by sharp organic declines of 14% and 19%, respectively, in the group's key U.S. and Chinese markets; stripping out those two countries, sales rose slightly from a year earlier, with other markets like India showing solid rises in revenue.

For the new fiscal year, Pernod said the U.S. and China--where tighter rules on boozing among public officials have hit cognac sales--are likely to keep booking a decline, though underlying trends should improve in China. Further ahead, continued softness in demand in the U.S. will keep group sales growth toward the lower end of a guided 3%-6% annual range through fiscal 2029, Pernod said.

The group made a recurring operating profit--a preferred metric--of 2.42 billion euros for fiscal 2026, down around 5% on year, as the margin slipped to 25.8% on a weaker price mix, trade tariffs and higher input costs, offset to some extent by a continued drive to make operational savings.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

August 27, 2026 01:45 ET (05:45 GMT)