Pernod Ricard global travel retail sales decreased by -31% year-on-year in Q3 of FY2025, and by -17% year to date, according to the group’s latest set of financial results.

“As expected, [this] sharp decline was driven by suspension of the duty-free regime on Cognac in China Travel Retail, compounded with a high comparison basis in Q3,” Pernod Ricard noted.

In more upbeat news, the company highlighted the continued growth in Europe, and the positive performance of the Americas and the cruise retail channel.

Pernod Ricard remains “resilient”

“We report a resilient net sales performance in a global macroeconomic and geopolitical environment which remains challenging and very fluid with regard to tariffs,” Pernod Ricard commented.

“The quarterly sales are impacted by some phasing technicalities that will reverse in Q4: namely in India, the impact of new customs clearance procedures and temporary production interruption in one major state, which is now resolved; in Global Travel Retail, a very high comparison base; and in some markets, the impact of the later Easter.

“Our balanced and broad-based geographic breadth and our diversified portfolio remain key in mitigating some of the impacts caused by the challenging environment.”

Pernod Ricard reported “good growth” for Jameson, Chivas Regal, Ballantine’s and Absolut, with declines on Martell and Royal Salute.

Q3 group net sales declined by -3% to €2,278m (US$2,589m) – reported and organic. FY25 nine-month sales decreased by -5% (reported) and -4% (organic) to €8,454m (US$9,609m).

By region, in Q3 sales in the Americas increased by +3% (-2% year to date), while in Europe sales dropped by -7% (-3% year to date). For Asia-Rest of the World, sales declined by -6% both in Q3 and for year to date. China was very soft, with a sharp decline on Martell, Pernod Ricard acknowledged, contributing to a sales drop of -5% for Q3 and -22% year to date.

Despite YTD “good growth” for Jameson, Chivas Regal, Ballantine’s and Absolut, Pernod Ricard’s Strategic International Brands sales decreased -4% in Q3 and -6% YTD, with “declines” on Martell and Royal Salute.

Referencing the FY25 outlook, Pernod Ricard commented: “In a context that remains very volatile, we are confirming our FY25 outlook of low-single-digit decline in organic net sales while sustaining our organic operating margin, supported by our programme of continuous operational efficiencies.

“This outlook incorporates the impact of expected tariffs in China and the US based on the information we have today….Maximising cash generation remains a core focus for the group.”

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