PARIS, Oct 17 Reuters French spirits maker Pernod Ricard said it still expected to return to sales growth in the 202425 fiscal year despite reporting a worsethanexpected 5.9 fall in first quarter sales, caused partly by weakness in China.
Pernod39;s first quarter sales drop came amid weak consumer demand in China and persistent challenges in the United States where retailers and wholesalers continued to cut back on pricier spirits stocks while weakness in China spread to Asia travel retail.
Pernod, the world39;s secondbiggest spirits group behind Diageo, was reporting the quarterly figures one week after China imposed temporary antidumping measures on brandy imports from the European Union.
That move has added to worries about the Chinese economy, which has been weighing on consumer demand, and it translated into a 26 fall in sales in China for Pernod in the quarter.
Pernod Ricard said it was working to mitigate the impact of the Chinese antidumping decision on the group39;s performance but did not provide details.
Pernod which owns Martell cognac, Mumm champagne and Absolut vodka reported sales of 2.783 billion euros 3.02 billion from July to September, a likeforlike decline of 5.9, worse than an analyst consensus for a decline of 4.8.
Pernod Ricard39;s fiscal year started on July 1.
1 0.9214 euros
Pernod which owns Martell cognac, Mumm champagne and Absolut vodka reported sales of 2.783 billion euros 3.02 billion from July to September, a likeforlike…