- Pernod Ricard
- 06 February 2025 09:03:15
Source: Sharecast
Pernod Ricard, which owns spirits brands like Absolut, Malibu and Havana Club, as well as wine brands like Brancott Estate and Campo Viejo, said it now expects a low-single digit decline in organic net sales in the year ending 30 June, below previous expectations for a return to sales growth.
The company also cited uncertainties surrounding the global tariff environment – following the past weekend's new import duties lobbied by Donald Trump at Mexico, China and Canada – but said it expects to see improving trends in organic net sales over the year ending June 2026, with growth picking up to 3-6% over FY27 to FY29.
"Amid extraordinary trade tensions, we are focused on defending Organic Operating Margin to the fullest extent possible," the company said.
The comments came alongside Pernod Ricard's first-half results, which showed a 4% decline in organic net sales to €6.18bnn over the six months to 31 December, with weakness in the US (-7%) and China (-25%) outweighing good performances elsewhere.
Reported sales fell by 6% due to a €177m unfavourable currency movement linked to fluctuations in the Argentinian Peso, Turkish Lira and Nigerian Naira.
Despite the lower guidance. the stock was up nearly 3% at €105.15 by 0943 in Paris, after having slumped by more than a third over the past 12 months.