Pernod prepares India listing as quarterly sales diverge by region

US market expected to remain soft through fiscal 2029

Pernod Ricard, the Paris-listed French distiller behind Absolut vodka, Jameson whiskey and Martell cognac, said Thursday that it is preparing for a potential initial public offering of its Indian business, moving forward what had previously been a more cautious stance toward a country that has become its clearest source of growth.

The potential listing would give Pernod a second venue beyond its existing Paris listing. A final decision remains subject to board approval, the company said.

Pernod’s Indian subsidiary sells locally produced whiskies as well as imports of its well-known international labels. Both categories grew by double-digit percentages in the July-to-September quarter, the first quarter of Pernod’s fiscal year, the company said.

Pernod said the Indian market “continues to enjoy dynamic consumer fundamentals, and sales driven by strong demand and continuing premiumisation” — referring to efforts to focus sales on higher-end and higher-margin labels. The company also disclosed that preparations for the contemplated listing produced favorable “pipe-fill” effects that lifted reported Indian sales during the quarter.

Sales in India rose 19% on the year. That growth offset sharp declines elsewhere. Sales in the United States fell 10%, and sales in China fell 25%. Overall quarterly net sales reached €2.23 billion ($2.49 billion), 0.9% lower organically than in the year-earlier period — better than the 1.7% drop analysts had forecast, according to an average of estimates compiled by Pernod ahead of the update.

The disclosure marks a shift from the position Chief Executive Alexandre Ricard had taken in August, when he described a potential India listing as remaining “only at discussion level.” “It’s not an obvious yes or no,” he said at the time. Analysts at Barclays wrote that the comments suggest an announcement on an IPO could be imminent.

Pernod’s broader outlook remained unchanged. The company backed its guidance for full-year sales to remain broadly stable, implying some improvement over the coming months. It expects the weak U.S. market to weigh on performance over the medium term, keeping average annual sales growth at the lower end of a guided 3% to 6% range through fiscal 2029. Efficiency savings totaling €1 billion should help expand the group’s profit margin, the company said, while allowing it to keep promotional spending at around 16% of net sales.

Ricard has previously warned that U.S. sales are likely to remain under pressure over the next few years. “The U.S. market will remain soft over that period,” he said in August. “It’s as simple as that.”

In China, where the 25% quarterly decline was the steepest regional result Pernod reported, the company pointed to early signs of recovery in depletions — an industry gauge of how much product is being pulled through to consumers. “Cautious trade optimism ahead of the Mid-Autumn Festival is confirmed,” Pernod said, referring to the late-September Chinese holiday that typically lifts spirits consumption.

Elsewhere, weak demand for booze in key markets continues to impact Pernod and the wider spirits sector, the company said, echoing the warning Ricard had issued in August.