French spirits giant Pernod Ricard announced disappointing financial results for the first half of the 2025-2026 fiscal year. The company's net profit fell by 18 percent, a direct result of a sharp reduction in consumer spending in key markets in the United States and China. Despite the difficult macroeconomic situation and unfavorable exchange rates, the company's management maintains optimistic forecasts for a sales recovery in the second half of the year.

Sharp drop in net profit

Pernod Ricard's net profit decreased by 18% to 975 million euros in the first half of the fiscal year.

Crisis in key markets

Sales in China fell by 28%, while in the United States by 15%, resulting from weak demand.

India as a new growth engine

Despite overall declines, the market in India shows improved dynamics, becoming a strategic area for the spirits producer.

No IPO plans in India

CEO Alexandre Ricard stated that the company currently does not plan a stock exchange debut for its Indian subsidiary.

The Pernod Ricard conglomerate, the world's second-largest spirits producer, is facing a serious market challenge. Results for the first half of the 2025-2026 fiscal year indicate a 15% drop in revenue, which amounted to 5.25 billion euros. The most severe slump was recorded in China, where sales plunged by 28%, and in the United States, where a 15 percent regression was noted. The company explains these figures by the process of destocking and a change in consumer purchasing habits, as they increasingly save on luxury goods. Pernod Ricard was formed in 1975 from the merger of two French anisette producers and over decades built its portfolio by acquiring global brands such as Absolut and Chivas Regal. Despite negative signals from key markets, CEO Alexandre Ricard points to positive aspects of operations in India and the Global Travel Retail sector. Organic sales decline amounted to 5.9%, which turned out to be slightly worse than analysts' expectations of 5.65%. In response to these difficulties, the company plans to implement rigorous cost-saving programs and optimize operational expenses. At the same time, rumors about an imminent listing of the Indian subsidiary on the stock exchange were denied, although it was admitted that IPO remains one of the long-term strategic options considered during annual reviews. 975 mln euro — net profit in the first half amounted to Prospects for the second half of the year assume a gradual improvement in the economic climate. The group hopes for stabilization in the US and a return to growth thanks to the strong position of brands such as Jameson and Martell. Investors are also closely monitoring the impact of inflation and exchange rate fluctuations on operating margins, which were significantly strained in the latest report. The company intends to continue marketing investments to maintain customer loyalty in an era of high interest rates and limited purchasing power. „Our results for the first half are in line with expectations, despite the difficult environment in the US and China, but we remain confident of a recovery in the coming months.” — Alexandre Ricard

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