French spirits group Pernod Ricard reported a broad decline in sales for the first half of its fiscal year, while flagging a less severe contraction in the second quarter compared with the first.
For the six months ending December 31, the company recorded total sales of 5.25 billion euros. On a like-for-like basis, that represented a 5.9% fall versus the prior period, a result the company said was roughly in line with a company-compiled analyst consensus of a 5.7% decline.
Broken down by quarter, Pernod Ricard said second-quarter like-for-like sales dropped 5%. While still negative, that compares with a 7.6% contraction in the first quarter, reflecting what the group described as improving dynamics in certain markets and channels, notably India and global travel retail.
The group attributed the ongoing pressure on demand to weak consumer spending and to destocking activity in two major markets - the United States and China - which continued to weigh on sales volumes during the period reported.
On profitability, Pernod Ricard said operating profit fell 7.5% on a like-for-like basis in the first half. That decline was slightly better than analysts' expectations compiled by the company, which pointed to an anticipated 7.7% fall.
Pernod Ricard, which owns brands such as Martell cognac, Mumm champagne and Absolut vodka, is the second-largest Western spirits group behind Diageo. The company reiterated its view that fiscal 2026 should be treated as a transition year, and that improving sales trends are likely to be skewed toward the second half of the fiscal year. Pernod Ricard's fiscal year began on July 1.
For reference, the company provided a currency conversion rate used in reporting: $1 = 0.8579 euros.
Although the second-quarter performance shows a smaller decline versus the first quarter, Pernod Ricard signaled that recovery is expected to be gradual and concentrated later in the fiscal year. The firm emphasized geographic and channel-specific improvements as contributors to the milder Q2 outcome, while acknowledging continued headwinds in key markets.