Jameson-maker Pernod Ricard's annual sales fall 1% in line with estimates

Pernod's net sales in the US declined by 9% and it saw an even steeper 10% drop in China

Bottles of Jameson whiskey, Photograph: Aidan Crawley/Bloomberg

France's Pernod Ricard reported a 1% fall in full-year organic sales on Thursday, largely in line with forecasts and its own guidance, as it managed to mostly offset deep problems in its key US and Chinese businesses.

The Western spirits maker, whose brands include Absolut Vodka and Jameson, maintained its full-year forecast in April even as sales in two of its largest markets faltered, banking on an uptick in demand in the fourth quarter.

Around 10.7 million cases of Jameson were sold last year, which was flat compared to the previous 12 months.

This follows several years of strong volume growth triggered by the pandemic when global travel and on-trade sales took off following the lifting of restrictions.

Net sales in the US declined by 9% and it saw an even steeper 10% drop in China. However, it said most other markets had seen a recovery in volumes in the second half and that it enjoyed decent growth in other key regions like India, where sales were up 6%.

“India has gone from being an emerging market to Jameson’s second biggest domestic market in a matter of years, as consumers continue to experiment with new brands,” said Irish Distillers chief executive Nodjame Fouad in a statement.

Irish Distillers’ prestige portfolio, which comprises Redbreast, Midleton Very Rare, Spot Whiskeys, Method and Madness and Knappogue Castle, experienced global net sales growth of 1% last year, which it said reflected the continued consumer demand for more premium products in the year.

“As we look to the future, we have much to be excited about. Plans for our new state-of-the-art distillery on a site adjacent to our existing distillery in Midleton, Co. Cork, continue apace, ensuring we can meet production capacity for our world-renowned Irish whiskey in the years to come," Ms Fouad continued.

It said this helped it deliver on its goal to end the year with net sales broadly stable, and just ahead of the 1.2% decline expected by analysts.

The company had achieved "robust results... within an environment of economic and geopolitical uncertainty," Chairman and Chief Executive Officer Alexandre Ricard said in a statement.

Pernod and rivals have suffered as a post-pandemic boom in expensive spirits sales has reversed amid high interest rates, inflation and other difficult economic conditions.

Pernod in particular has suffered as retailers and wholesalers in the United States cut back on pricier spirits stock to reflect lower demand. In China, meanwhile, sales have also been softer than anticipated as a troubled economy dented consumer confidence.

Pernod said it expected a "soft" first quarter of 2025, with further US inventory adjustments and a "very weak macro context in China."

Elsewhere, however, it expects a good performance and continued volume recovery, bringing net sales back to growth.

It would also sustain its organic operating margin, which expanded 80 basis points in its 2024 financial year thanks to higher pricing and tighter spending.

Profit from recurring operations grew well ahead of estimates, up 1.5%.

In the medium term, Pernod said it remained confident it could achieve closer to 7% organic net sales growth.

It proposed a dividend of €4.70 per share - flat compared to last year.

Additional reporting from Reuters.