+34
Pernod Ricard chief executive Alexandre Ricard says US offers little potential over next three years
Pernod Ricard reported steep sales declines in its top two markets - the US and China - on Thursday and said it now expects to achieve only the lower end of its long-term sales target through 2029.
The results underscore the prolonged downturn facing global spirits makers.told investors the US, its largest market, offered little potential over the next three years, weighing on overall group performance. The maker of Martell cognac and Absolut vodka, which held unsuccessful merger talks with Jack Daniel’s maker Brown-Forman earlier this year, now expects sales growth at the lower end of its 3 per cent to 6 per cent target range through 2029.
“The assumptions that drive that kind of outlook are based on a US market which is not in growth over that period and which is quite soft,” Ricard said. However, he said Pernod’s broad geographic footprint should help support performance in the coming years. AI companies are starting to sound desperate, and that’s not a good lookMeta’s huge settlement and how useful is an open plan office?
Pernod, which is the world’s second-largest spirits maker after Diageo, forecast broadly stable organic net sales, with trading conditions in the US and China expected to remain challenging in the first quarter. Sales in the US and China fell 14 per cent and 19 per cent, respectively, in the year ended June 30th.
Irish Distillers said sales of Jameson did rise by 9 per cent across markets outside the US though global net sales fell across its portfolio in its 2026 financial year. Jameson continued to grow in India, its second biggest market, Irish Distillers said, and the company delivered double-digit growth across its portfolio in established markets such as global travel retail, Germany and Poland, and emerging markets including Mexico, China and Nigeria.
The drinks group said it still had confidence in the US market, despite softer conditions. It said there said there was evidence of some improvement in its portfolio in the second half of the year. Bernstein analyst Trevor Stirling said Ricard’s comments on the US were expected after Diageo said earlier this month that the market would remain negative for the next three years.
There was no “massive surprise” in the results to justify the share reaction, he added, given Pernod’s performance and guidance were in line with expectations and peers. Spirits makers across the industry are grappling with a multi-year sales downturn that has eroded valuations, triggered management changes and prompted asset sales and cost-cutting.
Ricard said Pernod expects to complete its €1 billion restructuring programme a year ahead of schedule and had cut around 3,600 jobs since its 2024 financial year. He also told investors the board was discussing a potential initial public offering of the group’s Indian business and had already taken preparatory steps. India has overtaken China as Pernod’s second-largest market.
- ReutersTeacher credit unions secure overwhelming member backing for mergerVHI blames inflation as it rolls out price hikes averaging 2.75% from OctoberEuropean warships providing missile cover during EU presidency must stay 22km off Irish coast
Ireland Latest News, Ireland Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
Irish cyclist Liam O’Brien agrees pro deal to team up with late brother’s ‘ultimate idol’Cork rider joins Tom Pidcock and two fellow Irishmen at Pinarello-Q36.5 Pro Cycling Team
Read more »
PGA Tour to conclude season with two-week matchplay tournament from 2028The top 32 players will play Tour Championship across rotating venues each year
Read more »
Interpath extends lease with Iput for Dublin docklands officeCorporate restructuring specialist commits to further five-year occupancy at Two Riverside
Read more »
Markets Track Hormuz Negotiations as Oil Prices Ease and Stocks Remain MixedIran and Oman are still negotiating the details of a possible Strait of Hormuz agreement, while reopening remains linked to US conditions. Oil prices declined and energy shares weakened as investors monitored the geopolitical risks. European and Irish markets were mixed, with gains for Cairn Homes, Ryanair and Hochschild Mining offset by falls in energy, technology and agricultural stocks. US equities opened cautiously after stronger inflation data, with investors awaiting Nvidia results and assessing new commitments by Meta concerning teenagers and social media.
Read more »
US media reports claim Ratcliffe warned Russia not to attack NATOTwo US media outlets have cited their own sources as saying that John Ratcliffe, the director of National Intelligence, warned Russia not to attack any NATO member state during his visit to Moscow earlier this week. The Kremlin has not confirmed this, stating only that the meeting pertained to unspecified and sensitive intelligence matters.
Read more »