The French spirits company Pernod Ricard closed its last fiscal year, ending in June, with a net profit attributed of 1.203 billion euros, which implies a 26% drop compared to the profits recorded in the previous fiscal year.
The multinational, owner of well-known brands such as 'Absolut', 'Ballantine's' or 'Beefeater', emphasized that the year was marked by a particularly complex context, with persistent weakness in the U.S. market and weak demand in China.
The company detailed that its annual accounts were burdened by a negative impact in the perimeter of 114 million euros, mainly derived from brand divestments, as well as an unfavorable exchange rate effect of 268 million euros, mainly linked to the U.S. dollar, the Turkish lira, and the Indian rupee.
Regarding the business figure, Pernod Ricard's net sales reached 9.404 billion euros, representing a decrease of 14.2% in absolute terms compared to the previous year. In organic terms, the company recorded a year-on-year contraction of 3.9%.
By regions, revenue in Asia and the rest of the world decreased by 15%, to 3.920 billion euros, with a correction of 19% in China. In the Americas, revenues fell by 18%, to 2.584 billion euros, while in Europe, sales stood at 2.900 billion euros, 9% less.
Regarding the current fiscal year, the French distillery expects that organic net sales will remain at levels similar to those of the previous year in an environment that is still complex and uncertain, and anticipates declines in the U.S. and China, offset by sustained growth in the rest of the markets, with particularly intense growth in India.
In this same period, Pernod Ricard plans to undertake strategic investments close to 700 million euros.
In the medium term, and considering the current weakness of the U.S. market, the company estimates that the increase in organic net sales will be near the lower end of the growth range of 3% to 6% for the fiscal years 2027-2029.
At the same time, the company contemplates an improvement in the organic operating margin, supported by an acceleration of operational efficiency worth 1 billion euros between the fiscal years 2026 and 2028, and aims to reduce the net debt/EBITDA ratio below 3x for the fiscal year 2029.