Pernod Ricard, the French distiller behind Jameson, Ballantine's, and Chivas Regal, warned that fading interest in alcohol in the U.S. will continue to weigh on sales over the coming years, offsetting growth in markets like India. The company reported sales of 9.4 billion euros ($11 billion) for the 12 months through June, down 14% from the prior fiscal year, or 3.9% lower on an organic basis. Sales were dragged by sharp falls in the U.S. and China, which together contribute around a quarter of group revenue. Pernod expects U.S. softness to keep group sales growth toward the lower end of its guided 3%-6% annual range through the next three years. In contrast, India, which makes up about 13% of group revenue, showed solid growth, and CEO Alexandre Ricard said a possible separate listing of the Indian business remains at "discussion level." The company also highlighted growth in ready-to-drink products, which rose 12% on year, as a recruitment opportunity among younger drinkers.
Pernod Ricard S.A.Pernod warns of continued U.S. sales decline due to fading alcohol interest, dragging overall growth.
