Campari has maintained its full-year sales guidance after a better-than-expected third quarter showing bolstered by a lower-than-anticipated hit from tariffs.
Sales at Espolòn brand owner grew 4.4% organically in the three months to 30 September – ahead of a Bernstein-compiled consensus of a 3.8% rise.
The growth was broad-based, with all regions reporting an uplift compared with the previous quarter. Americas grew by 5%, with the all-important US business up 1% in an industry down by around 3%.
The showing is a considerable improvement on many of Campari’s spirits peers. Pernod Ricard recorded a 7.6% decline in revenues in Q3 after China and the US dragged on sales, while Rémy Cointreau recorded an 11% organic sales slide in its fiscal second quarter this morning (30 October). The London-listed Diageo is due to report third quarter trading results next week.
“In an ongoing challenging backdrop, we recorded a resilient organic sales growth,” said Campari CEO Simon Hunt. “We remain focused on what we can control and continue to make good progress in all our strategic priorities.”
Adjusted earnings, meanwhile climbed by 18.8% and well ahead of forecasts after falling input costs helped swell margins and the impact of a “wide and ongoing” cost-cutting drive announced in May kicked in.
Earlier this year, the Aperol owner offloaded its Cinzano vermouth and sparkling wine brand to Italian peer Caffo Group 1915 for €100m.
Campari would “continue to streamline assets” and “explore… disposal opportunities” to further strengthen its balance sheet, Hunt said.
On account of “better absorption” of tariffs, Campari said its forecast of “flattish” organic earnings growth for this year now incorporated the full hit from US levies for this year. This was estimated to be around €15m in 2025, and €37m on an annualised basis, it added.
Full-year sales are still expected to grow this year, with a gradual return to mid to high single-digit growth forecast in the medium term.
“What a difference a year makes,” Bernstein analysts wrote in a note to clients. “A year ago Campari delivered a weak top-line performance and a big margin hit in Q3, much worse than market expectations.”
Twelve months on, there was “evidence of a slow top-line recovery and of the promised margin expansion”, they added.
Campari shares rose 9% in early trading.
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