(BFM Stock Exchange) – The group of spirits has revised its turnover objectives for its year ended at the end of June and in the medium term, citing a more complex economic and geopolitical environment. But the market does not hold it against it, appreciating the maintenance of medium -term objectives unlike its Rival Diageo on Tuesday.

With a week in advance compared to his initial calendar, Pernod Ricard in turn passes the test of the results. And they still carry out the traces of its difficulties in the United States and China, its two main markets.

The company has undoubtedly revealed sales down for the first half of its staggered exercise 2024-2025. Recall that the spirit giant is now the only resident of the CAC 40 who is on an offbeat exercise, with closed accounts at the end of June.

China Achille Talon by Pernod Ricard

Between July and the end of December 2024, Pernod Ricard released income of 6.18 billion euros translating a decrease of 4% over one year in organic data (excluding exchange effects and perimeter). In addition to a declining activity on its key markets, negative exchange effects also weighed up the turnover up to 177 million euros.

In the United States, company revenues has declined 7% in comparable data. The group still made its back in the region, but noticed in the second quarter, an improvement on key brands, especially on Jameson whiskey.

In China, the other key market in Pernod Ricard, sales fell by 25%. The company points to a “macroeconomic environment that is always difficult and low demand from the consumer”. The group warned that the Chinese New Year period had been very low, with a sharp drop in gift purchases (GIFTING).

The number two of the spirits also unveiled a current operating profit (ROC) of 1.985 billion euros, down excluding exchange effects and perimeter of 2%, exteriorizing a margin of 32.1% as well as a net profit of 1.19 billion euros, down 24% in the first half of 20224-2025.

A downward adjustment of objectives

The world number two in the spirits sector revises its growth objective of turnover for its year ended in late June 2025, evoking “a difficult macro-economic environment and increased geopolitical uncertainties” especially in China.

The group notably refers to the Beijing decision to apply deposit deposits on cognac imports, since October 2024. Pernod Ricard also cites a weakness of sales in airports in Asia, and in particular for its cognac Martell.

In this context, Pernod Ricard now provides for an organic withdrawal (“Low Single Digit”) of sales which can roughly result in a decrease of 1% to 4%, while he was previously tapped on “a return to organic growth “.

“Depending on the amplitude of potential customs tariffs, exercise 2025-2026 should be a year of transition, with an improvement in the trend of organic turnover,” adds Pernod Ricard. The company also evokes “a context without precede of commercial tensions” which leads it to focus on the “protection as much as possible of (its) organic operating margin”.

The group is also under the threat of taxes in the United States, since Donald Trump has mentioned in his presidential program the restoration of customs duties on imports of wines, cognac and Scottish whiskeys. This 25% customs tax had been suspended by the Biden administration.

“A more realistic approach”

The group also adjusts its medium -term objectives. For the period 2026-2029, the company expects annual organic growth between 3% and 6% of its turnover, against a previous forecast which was located in the “upper part” of a range between 4% and 7%. The market is conciliatory with Pernod Ricard, judging that the new objectives of the French group are now more consistent in a more opposing market environment.

On the Paris Stock Exchange, Pernod Ricard increased by 2.7% after these announcements. “The double revision of the 2025 and Middle Terme perspectives was integrated into the expectations of consensus. This is a relief rebound since it is not worse than expected,” said Sarah Thirion, analyst at TP ICAP Midcap cited by Reuters.

“The warning is a new blow for any potential constructive opinion on European spirits in a context of macro and political turbulence, although a more realistic approach to medium -term objectives and investments are to be noted,” want to temper JPMorgan analysts also cited by the news agency.

Above all, investors do not hesitate to bring together with the leader of the Diageo sector, who, Tuesday had purely and simply renounced his medium -term objectives.

The number one in the sector then cited reduced visibility with the threat of additional customs duties on some of its alcohols produced in Canada and Mexico.