The company’s global travel retail declined by 31 per cent, with the dip driven by the suspension of the duty-free regime on Cognac in China travel retail
Impacted by uncertainty around tariffs, customs clearance procedures and a production interruption in India, Pernod Ricard has reported a three per cent decline in the third quarter net sales, as per a report by Reuters.
The company stated that the United States spirits market remained broadly stable as Q3 organic net sales were ahead of sell-out, supported by wholesalers’ orders ahead of tariff announcements. In India, it marked a marginal increase of one per cent in the third quarter as sales were impacted by phasing technicalities, due in part to the implementation of new customs clearance procedures affecting sales of imported spirits and a temporary production interruption in a major state, which was later resolved.
Marking a decline of five per cent in China in the stated period, the the world’s number two western spirits maker noted that the macro context remains challenging. Its global travel retail declined by 31 per cent in Q3, with the dip driven by the suspension of the duty-free regime on Cognac in China travel retail, compounded with a high comparison basis in Q3, the official statement added.
“In a context that remains very volatile, we are confirming our FY25 outlook of low-single-digit decline in organic net sales while sustaining our organic operating margin, supported by our program of continuous operational efficiencies. This outlook incorporates the impact of expected tariffs in China and in the US based on the information we have today,” the company stated on the FY25 outlook aspect.
The company highlighted that its balanced and broad-based geographic breadth and its diversified portfolio remain key in mitigating some of the impacts caused by the challenging environment.
