Campari has warned it faces a hit of up to €45m to earnings this year as a result of US tariffs.
The Italian spirits major said the negative impact from tariffs in its current financial year could range from as little as €4m – if EU tariffs were lifted and Canada and Mexico remained exempt – to as much as €45m “depending on confirmation of the scope and rates, before possible mitigation actions”.
European wine and spirits are set to face a 15% US import tariff until a different deal is agreed, EU diplomats confirmed on Thursday (31 July).
The update came alongside half-year financial results from Campari, in which the Aperol brand owner reported near-flat sales, despite a return to growth in the three months to the end of June.
Campari said net sales grew by 3.5% over the quarter on an organic basis. In its first six months of the year, sales were up by just 0.1% to €1.53bn, but ahead of analysts’ forecasts of a 1.1% decline.
Adjusted operating profit fell by 5.6% organically over the half, but was up 2.9% in Q2, with the supplier benefiting from gross margin accretion and the initial effects of a cost savings programme announced earlier this year.
In its ‘Americas’ reporting region, Campari saw sales decline by 1% in the half, but grow by 4% in the most recent quarter. US sales were down 3% in the half, but up 3% in Q2.
EMEA, meanwhile, grew by 1%, with the UK recording double-digit growth “driven by aperitifs, mainly Aperol and Aperol Spritz”.
Analysts at Bernstein described the performance as “solid”, pointing to “multiple points of inflection, across top and bottom lines, indicating solid recovery momentum”.
The results were sufficient for Campari to reaffirm its full-year outlook for “moderate organic topline growth” alongside “flattish” organic EBIT-adjusted margin, excluding the potential impact of tariffs.
“While the backdrop continues to be volatile, our performance remains on track and we have made good progress on our strategic priorities as planned,” Campari CEO Simon Hunt said. “We recorded a positive organic topline growth in Q2, as expected, in early peak season. In terms of sell-out, our outperformance is continuing across most geographies with further improvement in Q2, driven by aperitifs and tequila.”
Hunt continued: “Looking forward, we confirm that our previously provided guidance for 2025 remains our target, before the impact of US tariffs, and the third quarter will be fundamental for clearer visibility. We remain confident in the delivery of long-term sustainable growth and improvement in our balance sheet indicators including our commitment to sustainable cashflow generation and deleverage.”
Campari set out plans to cut costs and divest non-core brands after missing forecasts in its third-quarter results last October.
Despite posting full-year sales growth ahead of analysts’ consensus in March, the group warned it expects 2025 to be a “transition year” due to the impact of US tariffs.
Last month, it sold its Cinzano vermouth and sparkling wine brand – along with its Frattina wine business – to Italian peer Caffo Group 1915 for €100m.
The sale of Cinzano marked “a key step in our strategy of streamlining our portfolio to increase focus on our key core brands”, said Hunt on Thursday.
No comments yet