Pernod Ricard profit falls 26% on US, China weakness

Pernod Ricard said Thursday that annual profit fell 26 percent to 1.2 billion euros, or $1.4 billion, blaming weak markets in the United States and China and higher tariffs.

The French drinks group, whose brands include Beefeater gin and Absolut vodka, said turnover fell 14 percent in its full year to the end of June to 9.4 billion euros. It said the decline was mainly due to weakness in the US dollar, Indian rupee and Turkish lira.

Sales in the United States fell 14 percent in 2025-26 from the previous period, while sales in China dropped 19 percent. Sales across Europe were down three percent.

Pernod Ricard blamed the US decline on a spirits market slowdown, economic moderation and subdued consumer confidence. In China, it cited a challenging macroeconomic environment, weak consumer sentiment and regulatory measures affecting demand.

The company said Chinese anti-dumping duties on European cognac continued to hit its cognac brands, including Martell. China imposed the duties after the European Union raised tariffs on Chinese electric cars in 2024.

Sales rose nine percent in India, where Pernod Ricard owns Royal Stag whisky. The group said a cost-cutting campaign had delivered one billion euros in operational efficiencies since it was launched.

Pernod Ricard said it expected broadly stable turnover for 2026-27 despite what it called a contrasted and uncertain environment.