Pernod Ricard reported revenue of €10.96 billion for the year to 30 June 2025, an organic decline of 3%, while recurring operating profit slipped 0.8% to €2.95 billion. The French spirits maker nevertheless beat analysts’ expectations, helped by cost controls that lifted free cash flow to €1.13 billion. A stable dividend of €4.70 per share was proposed. Sales fell 6% in the United States and 21% in China, reflecting weak consumer demand, distributor de-stocking and lingering tariff uncertainty. Across the wider industry, French cognac revenues dropped 13% as buyers shifted to entry-level brands. Chief Executive Alexandre Ricard said fiscal 2025-26 will be a “transition year” with improvement weighted toward the second half. The group reiterated its target of 3-6% annual organic sales growth and margin expansion for 2027-29. Pernod now expects the annualised cost of U.S. and Chinese duties to be about €80 million, down from a prior estimate of €200 million after tariff deals reached in July. Investors welcomed the outlook; the shares gained up to 8% in Paris trading on 28 August before trimming gains to about 5%. Pernod is pressing ahead with a restructuring programme aimed at cutting costs and rebuilding momentum in its two largest markets.