Pernod Ricard reported a 19% increase in sales in India during the first quarter of fiscal year 2027, helping the French spirits major offset declining demand in the United States and China. The company recorded total first-quarter sales of €2.234 billion (approximately US$2.51 billion), representing an organic decline of 0.9%. The performance was better than the 1.7% decline forecast by analysts, highlighting the resilience of its business despite continuing challenges in major global markets.
India emerged as a key growth driver for Pernod Ricard during the quarter, with sales rising 19% amid changing consumer preferences and sustained demand for alcoholic beverages. The strong performance contrasted with a 10% decline in the United States and a sharp 25% drop in China. Weak consumer demand and distributor inventory reductions affected sales in both markets, weighing on the company’s overall performance.
In China, Pernod Ricard said underlying business trends were improving, although it maintained a cautious outlook ahead of the Chinese Mid-Autumn Festival. The company continues to navigate an uncertain consumer environment in the country, where demand weakness has affected several international spirits brands.
Pernod Ricard’s strong performance in India reinforces the country’s importance to its global growth strategy. The company’s portfolio includes internationally recognised brands such as Absolut vodka and Martell cognac, alongside its broader range of spirits and alcoholic beverages. India’s growing premium spirits market offers opportunities for international producers as consumers increasingly explore premium products and established global brands.
Three Brothers Distillery Crosses 500,000 Units in Sales for 55° North and Northern Pride Whisky
Rajasthan Pollution Control Board Orders Closure of Carlsberg India’s Alwar Brewery Over Pollution ViolationsThe company is also preparing for a potential initial public offering (IPO) of its Indian business. Pernod Ricard reiterated that any listing decision remains subject to board approval, indicating that the proposal has not yet been finalised.
Despite the mixed performance across markets, Pernod Ricard maintained its full-year outlook for broadly stable net sales in fiscal 2027, which began on July 1, 2026. The company also expects sales growth towards the lower end of its 3%–6% target range through 2029.
The latest results highlight the contrasting performance of major spirits markets, with India delivering strong growth while the United States and China continue to face demand-related pressures. Pernod Ricard’s ability to sustain momentum in India while stabilising its international operations will remain important to its financial performance in the coming quarters.
About the Author
