Pernod Ricard posted a 0.9 per cent organic net sales decline to €2.234 billion for its fiscal first quarter. The result beat market forecasts of a 1.7 per cent drop.

Sales in India jumped 19 per cent, offsetting double-digit slumps across mainland China and the United States. Group net sales reached the equivalent of $2.5 billion in the three months to September 30. Paris-listed shares rose 3 per cent.

India delivered the strongest performance across the group’s global network, serving as its primary growth engine for premium spirits in South Asia. Demand for Absolut vodka and Martell cognac remained resilient across Indian retail outlets and hospitality venues. Distributors in western markets, by contrast, continued to trim excess inventory.

Preparatory work is underway for a potential initial public offering of the Indian business. Execution remains subject to board approval and broader market conditions. Finance chief Mauve Croizat noted the listing process will take several months to complete once cleared.

Revenue in China plunged 25 per cent during the quarter as weak consumer sentiment and distributor destocking took a toll. Wholesalers across tier-one and tier-two cities held back on orders to avoid accumulating slow-moving stock ahead of key promotional windows.

Croizat told analysts that inventory adjustments in China and the United States will persist throughout the fiscal year. Chinese drinking habits are also shifting toward private gatherings at home. Moving away from nightclubs, banquet halls, and dining out reduced high-margin venue sales for premium cognac.

Beverage distributors and bar operators in Asia face sharply diverging conditions in India and China.

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