French spirits producer Pernod Ricard recorded an eighteen percent drop in net profit in the first half of the 2025/2026 fiscal year. The main reason for the weaker results is a sharp slowdown in demand in key markets in the United States and China. Despite the difficult situation in Asia and North America, the company sees positive signals in India and the travel retail sector, allowing for cautious optimism regarding the second half of the year.

Drastic drop in net profit

The spirits giant's net profit decreased by 18% to a level of 975 million euros in the first half of the 2025/2026 fiscal year.

Problems in the US and China

Sales in key markets drastically fell: by 15% in the United States and by as much as 28% in China, hitting the group's profitability.

Speculation around stock exchange in India

CEO Alexandre Ricard denied rumors of an imminent stock market listing of the Indian subsidiary, despite the high potential of the local market.

Cost-cutting strategy

Faced with weaker demand, the company is focusing on operational savings and counts on a rebound in the travel and duty-free sector.

French conglomerate Pernod Ricard, the world's second-largest spirits producer, published disappointing financial results for the first half of the 2025/2026 fiscal year. The group's net profit fell by 18%, reaching 975 million euros. The company's revenue amounted to 5.25 billion euros, representing a 15% decline compared to the same period last year. A key factor hindering growth was weak consumption on two strategic markets: in the United States and in China. In the US, sales fell by 15%, explained in part by the process of inventory reduction by traders. The situation in China appears even more difficult, where a massive 28% sales decline was recorded. This results from weakened consumer sentiment in the Middle Kingdom and an unfavorable macroeconomic environment. The Chinese market for Western producers of luxury goods and premium alcohol became a growth engine after 2010, but the current economic slowdown in the country is revising the strategies of global brands. Despite these disruptions, CEO Alexandre Ricard points to an improvement in sentiment in the second quarter compared to the first. The company is focusing on rigorous cost control and counts on a rebound in the Global Travel Retail sector. 28% — decline in Pernod Ricard's sales on the Chinese market An important thread in the company's communications was the issue of its presence in India. Reports emerged about plans to list its local subsidiary on the stock exchange. Management confirmed that an IPO of the Indian unit is one of the options considered annually as part of the strategic review, but no binding decisions have been made at this time. India is one of the fastest-growing markets for Pernod Ricard, serving as a key pillar of the revenue diversification strategy beyond saturated Western markets. Investors on the Paris stock exchange reacted to this news with moderate concern, although management maintained forecasts for improved sales momentum in most regions in the coming months. „We are not currently planning to list the Indian subsidiary on the stock exchange, although we regularly analyze this option as one of many development possibilities.” — Alexandre Ricard Sales Decline in Key Markets (H1 2025/2026): USA: 15, China: 28, Total organic sales: 5.9

Mentioned People

  • Alexandre Ricard — CEO of the Pernod Ricard group
  • Christian Hartmann — Reuters agency photographer mentioned in sources
  • Emma Rumney — Reuters journalist reporting on the company's results