French spirits manufacturer Pernod Ricard reported weak results for the first half of FY26, with organic sales declining by 5.9 per cent to around £4.5bn.

The steep sales decline was impacted by a negative foreign exchange effect of around £311m, which was mainly linked to the US dollar, Indian rupee and Turkish lira.

Additionally, the business incurred £189.7m in costs due to brand disposals during the first half.

The parent company of Jameson and Absolut experienced an operating profit decrease of 7.5 per cent on an organic basis and 18.7 per cent on a reported basis to around £1.3bn.

Alexandre Ricard, chairman and CEO, of Pernod Ricard said: “Our priorities are clear: to strengthen the desirability of our brands as a foundation of long-term, sustainable growth; to drive greater efficiency across the organisation; and to enhance cash generation.

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“Our balanced geographical footprint, diversified portfolio and highly engaged teams put us in a unique position to navigate a contrasted environment and seize opportunities. We remain fully committed to adapting with agility and executing with discipline to meet evolving consumer needs and capture growth.”

Pernod Ricard’s group share of net profit fell by 20 per cent to around £845m, impacted by a significant decrease in consumption in the USA and China regional markets.

The first-half results were affected by the softness in the spirits category in the USA as well as an increase in regulations and consumer sentiment weakness in China.

Moving forward, the business forecasted that sales will continue to be impacted by “market volatility and uncertainty” and expects signs of improvement to appear within the second half of the year.

The spirits manufacturer projected an annual organic net sales growth of between 3 per cent and 6 per cent on average.