Pernod Ricard said weak demand for alcoholic drinks in the U.S. will continue to weigh on its sales growth over the coming years, despite more positive drinking trends elsewhere. The French distiller of Absolut vodka, Jameson whiskey and Martell cognac made 9.4 billion euros ($11 billion) in sales over the 12 months through June, down 14% year-on-year or 3.9% on an organic basis. Sales growth was dragged by sharp organic declines of 14% in the U.S. and 19% in China; stripping out those two markets, sales rose slightly year-on-year, with India showing solid revenue gains. For the new fiscal year, Pernod said the U.S. and China—where tighter rules on public officials’ drinking have hit cognac sales—are likely to keep booking declines, though underlying trends should improve in China. Continued softness in U.S. demand will keep group sales growth toward the lower end of a guided 3%-6% annual range through fiscal 2029. Recurring operating profit fell to 2.42 billion euros for fiscal 2026, down around 5% year-on-year, as margin slipped to 25.8% due to weaker price mix, trade tariffs and higher input costs, partially offset by operational savings.

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