Pernod reports sharp -26% sales drop in China

17 October, 2024

Sales for Q1 FY25 totalled €2,783m with an organic decline of -5.9% largely driven by a steep drop in China.

According to the group’s latest performance report, sales in China for Q1 FY25 were down -26% due to weak consumer demand over the summer particularly for Martell cognac and Scotch.

“Further to the announcement by MOFCOM (The Ministry of Commerce, People's Republic of China) for the implementation of temporary duty deposits effective from Friday 11 October, actions are being taken to mitigate the impact on the group’s performance,” the press release read.

“Given the current weak environment, we expect to see a more significant full-year decline than last year.”

KEY MARKET RESULTS

US -10%

Canada: strong growth, in particular from newly acquired RTD brands

Brazil: strong result, lapping favourable comparison basis

Mexico: decline, notably with weaker tourism impacting on-trade

India +2%

- Solid sales growth, impacted by phasing, expected to fully reverse in Q2

- Strong underlying sell-out growth

- Strong performance of Royal Stag, Blenders Pride, Jameson, all growing double-digits

- Strong growth expected for the full-year

Europe -3% (ex-Russia +1%)

Gaining market share in France, Germany and Poland

Solid performance of Ballantine’s, Mumm and RTDs

Global Travel Retail +3%,

Strong growth in all regions except Asia, with good growth for Absolut, Jameson and Ballantine’s

Weak consumer sentiment affecting Chinese travelers’ spend, expected to persist for the full year

BY BRAND

Strategic International Brands -10%: mainly driven by Martell in China, Royal Salute in Korea and The Glenlivet in the US

Strategic Local Brands +1%: continued good momentum of Seagram’s whiskies portfolio and Kahlua

Specialty Brands -9%: largely driven by the US market performance, though with good results from Bumbu, Redbreast and Spot Range Irish whiskies

RTDs: strong double-digit growth led by Absolut and Ace Beverage Outlook

READ FULL RESULTS HERE





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