French liqueur company Pernod Ricard SA (PDRDF.PK, PDRDY.PK,PRN.L) reported Thursday weak profit and sales in its first half.
Looking ahead, for fiscal 2025, the company now projects low single digit decline in organic net sales and sustaining organic operating margin.
The company previously expected fiscal 2025 organic net sales back to growth with continuing volume recovery and to sustain organic Operating Margin.
The company said, "Ongoing challenging macroeconomic environment and intense geopolitical uncertainties continue to impact the Spirits market, particularly the worsening context in China and Travel Retail Asia, notably impacting Martell. This leads us to revisit our outlook for FY25 and beyond."
FY26 is expected to be a transition year with improving trends in Organic Net Sales.
From FY27 to FY29, the company is projecting stronger Organic Net Sales growth, aiming for a range, on average of +3 percent to +6 percent, accompanied with Organic Operating Margin expansion.
For the first half, Group share of net profit fell 24 percent to 1.19 billion euros from last year's 1.57 billion euros.
The company noted that non-Recurring Operating Expenses include mainly costs of Group Transformations projects and Restructuring.
Group share of Net Profit from Recurring Operations dropped 11 percent to 1.27 billion euros from 1.44 billion euros a year ago, reflecting higher financial expenses.
Earnings per share dropped 11 percent to 5.06 euros from prior year's 5.68 euros.
Profit from Recurring Operations was 1.99 billion euros, down 7 percent from 2.14 billion euros a year earlier.
Net sales were 6.18 billion euros, down 6 percent from last year's 6.59 billion euros. Sales fell 4 percent organically.
The company recorded sequential improvement in the second quarter and with good performances in some mature and emerging markets, partially offsetting the declining but improving US and a continuing very weak China.
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