Pernod Ricard’s Sales Slip In Q1, But Rebound Expected
October 19, 2023Pernod Ricard saw sales decline 2% organically to €3 billion ($3.2b) in its fiscal first quarter ended in September, as the company cited normalizing conditions and a tough comparison against the prior year as weighing down results.
In the U.S. market, sales fell 8%, due to the unfavorable comps with last year and inventory adjustments at the retail tier. Still, Pernod said it saw share gains from brands including Jameson, Código, Malibu, Kahlua, and The Glenlivet, and says it intends to ramp up activation of its brands in the marketplace ahead of the holiday season. The company is expecting a turnaround in the U.S. looking ahead—as consumer demand continues to normalize—noting its positive outlook on the market for the full fiscal year ending next June.
“We remain confident in our FY23 to FY25 mid-term financial framework aiming for the upper end of +4% to +7% organic net sales growth and +50/+60bps organic operating margin improvement,” Pernod said.
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