Moët Hennessy reported a 5% uptick in organic sales for Q1, exceeding analyst expectations, with growth spread equally across Cognac, Champagne and table wine. However, the improvement came with caveats: Q1 is not a significant trading period, timing benefits from Chinese New Year and Easter played a role, and growth was primarily driven by Asia whilst the US remains challenging. Pernod Ricard's Q3 results showed flat organic sales, with double-digit reported declines due to currency fluctuations. The company predicts a 3-4% revenue downturn for the year to June, citing Middle East conflicts affecting global travel retail, which accounts for 5% of group sales. Both companies remain cautious about recovery prospects despite these modest improvements in an otherwise difficult spirits market.

Pernod Ricard has lowered its full-year sales forecast to a decline of 3% to 4%, citing escalating conflict involving the US, Israel and Iran as a major factor affecting its business, particularly in travel retail. The Paris-based spirits company reported total sales of €1.945 billion for the quarter through March, down 15% year-on-year. Travel retail operations were essentially shut down last month in conflict-affected regions, with airport closures across Gulf hubs halting international travel. The company also faces challenges in key markets, with US sales falling 12% and China down 7%. India provided a bright spot with 11% growth. Pernod Ricard confirmed ongoing merger discussions with Brown-Forman, though Sazerac has reportedly made a $15 billion acquisition offer.

Pernod Ricard reported flat organic net sales growth of 0.1% in its third quarter, showing sequential improvement from the first half. The French spirits company's Q3 volumes returned to growth at 4%, though nine-month sales declined 4.4% organically. The US market contracted 12% in Q3, whilst China fell 7%. Excluding these markets, the rest of the world grew 5%. India showed strong performance with 11% Q3 growth, whilst Europe returned to growth at 1%. Strategic International Brands volumes grew 3% in Q3, with strong performances from Ballantine's, Royal Salute and Malibu. Ready-to-drink products posted 26% Q3 growth. Pernod Ricard now expects full-year organic sales to decline 3-4%, impacted by Middle East conflict. The company maintains its efficiency programme targeting €1 billion in savings by FY29.