Source: Sharecast
The French drinks group - which owns Absolut, Malibu and Beefeater, among others - saw net sales fall 6.3% in the first quarter, or by 0.9% on an organic net basis, to €2.23bn. Consensus had been for a notably larger organic decline, of around 1.7%.
In the US and China, sales slumped 10% and 25% respectively, after both markets were hit by inventory adjustments. However, once those markets were stripped out, sales in the rest of the world rose 4%, led by a 19% spike in revenues in India. "[The] market continues to enjoy dynamic consumer fundamentals, and sales driven by strong demand and continuing premiumisation," Pernod Ricard noted.
Looking ahead, the Paris-based group - the world’s second-largest spirits maker after Diageo - flagged "cautious trade optimism ahead of the Mid-Autumn Festival" in China.
It continued: "The global environment remains volatile and uncertain, notably with ongoing conflicts in Europe and in the Middle East, and with cost of living pressures in some markets.
"Momentum and sales growth are improving in a number of key markets, demonstrating the benefit of our diversified premium brand portfolio, our balanced and broad geographic footprint, and our ability to adapt quickly to changing market conditions."
The company currently expects organic net sales to be "broadly stable" in the full year, with ongoing declines in the US, underlying improving trends in China and ongoing positive momentum elsewhere.
As at 1245BST, the stock was trading 1% higher, having pared back earlier gains.