Bacardi-Martini NV's sales in North America slid 14% over the past two years, reflecting a broader sector downturn. Profit still rebounded in the fiscal year ended March 31, as rising sales in Europe and the rest of the world compensated for North American weakness. Pretax profit rose 5% to $170.4 million at the Netherlands-based unit, while beverage sales, including Patron tequila, Teeling Whiskey, and Grey Goose vodka, edged up to $5.12 billion.

Fitch Ratings warned that net sales at Bacardi-Martini are expected to be modestly negative in the current fiscal year amid ongoing North American headwinds. Young US consumers increasingly turning to legal cannabis and cutting back on alcohol for health reasons have pressured spirit sales. Rival Pernod Ricard SA expects only the lower end of its sales-growth forecast, while Diageo Plc, holding the biggest North American market share per Euromonitor, is cutting costs and prices to boost volumes.

Bacardi-Martini, a Bermuda-based holding company, saw net worth rise $115 million to $4.27 billion. The parent company benefits from St Germain, whose sales soared as the Hugo Spritz cocktail gained popularity.