Pernod Ricard Expects Full-Year Sales to Fall on Middle East Conflict

By Joshua Kirby

French drinks group Pernod Ricard said it now expects to book declining sales for the full fiscal year as the impact of the U.S. and Israel's war on Iran weighs on airport booze retail.

The maker of Absolut vodka, Martell cognac and Jameson whiskey had previously said it banked on improving organic trends in sales over fiscal 2026, which runs through June. But as a result of the escalation of conflict in the Persian Gulf and wider region in recent months, the company now expects to book a 3%-4% drop in net sales for the year. The company reported a 3% drop in its top line last fiscal year.

"We are carefully monitoring the evolving conflict in the Middle East, and we expect full-year net sales to be impacted," the company said in an update Thursday.

For the third quarter through March, Pernod made sales of 1.945 billion euros ($2.30 billion), down 15% from the same period last year. On an organic basis, with hits from currency fluctuations removed, sales were 0.1% higher on year.

The group's global travel retail business booked sales growth of 11% over the quarter, but continued travel disruption from the war means the business's revenue is likely to decline for the fiscal year as a whole, Pernod said. The key U.S. and China markets meanwhile booked continued drops in sales over the quarter.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

April 16, 2026 01:44 ET (05:44 GMT)