PARIS (Reuters) -French drinks company Pernod Ricard cut its 2025 and longer-term outlook on Thursday and brought forward issuing of its first half results, citing challenging market conditions in the United States and China.
The company cited duties on cognac by China, which Beijing had imposed after the European Union levied tariffs on its electric vehicle imports, as well as the political situation and a weak macro environment in South Korea.
“The current context has led us to update our expectation for top-line to low single digit decline for the full year FY25. Given this change in outlook, we have to communicate earlier than planned to comply with our regulatory obligations,” the company said in a statement.
“Conditional on the challenges posed by the global tariff environment, FY26 is expected to be a transition year with improving trends in organic net Sales,” the company added.
The company said it was now expecting a low single digit decline in organic net sales for the 2025 full year. It had previously anticipated 4% to 7% organic net sales growth.
Diageo, the world’s top spirits maker, had also faced pressure from investors to cut medium-term sales goals, which they said may have been unrealistic due to declining sales across the sector.
(Reporting by Sudip Kar-Gupta; Editing by Makini Brice)
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