PARIS, Aug 29, 2024 (BSS/AFP) - French spirits giant Pernod Ricard on Thursday posted a sharp drop in net profits, which it attributed to a "normalisation" of the market post-Covid and lingering economic uncertainty.

The owner of Absolut vodka, Jameson whisky and Mumm champagne saw annual profits down 35 percent during its last financial year to 1.48 billion euros ($1.6 billion).

Sales were down four percent during the 2023/24 financial year to the end of June, bringing to an end two strong years of growth after the bounceback from the Covid-19 pandemic.

China saw some of the biggest declines in sales through the year -- dropping 10 percent on the previous year -- which the group attributed to the country's weak consumer sentiment and a challenging economic environment.

The key United States market, where Pernod Ricard generates a fifth of its sales, was down nine percent.

Alexandre Ricard, chairman and CEO, called the results "robust" given an "environment of economic and geopolitical uncertainty".

He said that the results reflected a "spirits market normalization after two years of exceptional post-pandemic growth."