Pernod Ricard's shares have tumbled 70% to €64 since reaching a peak of €214 on 21 April 2023. This decline has seen the group's market capitalisation shrink from €55.5bn to €16.2bn.
The drinks giant reported a 3.9% fall in its overall organic net sales. Profits from recurring operations also decreased by 5.2% to €2.4bn, or 17.9% on a reported basis.
Scotch whisky, which accounts for approximately 23% of Pernod Ricard’s global sales, saw its arm Chivas Brothers fall by two per cent. This was a smaller decline than the previous financial year and included a return to growth in the second half. Ballantine’s sales were up one per cent to 9.4m cases, Chivas Regal was flat at 4.7m cases, The Glenlivet was down five per cent to 1.3m, and Royal Salute fell nine per cent to 200,000 cases.
Pernod Ricard continues to face challenges in key markets. Sales in the US, the company’s largest market, fell by 14%. Chinese sales tumbled by 19% following Beijing's restrictions on duty-free Cognac sales. Chairman and CEO Alexandre Ricard warned that US sales are unlikely to recover until 2029, though he expressed more optimism for a quicker turnaround in China.