Italian spirits major Campari Group has warned of a potential impact from tariffs on its EBIT this year.
The Aperol maker said it expected a possible €90-100m ($96-107m) hit from the 25% tariffs on Canadian, Mexican and EU imports for the 12 months of 2025.
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The US has levied tariffs on goods from Canada and Mexico. President Trump has yet to announce tariffs on EU imports and it is unclear what would be included in any measures.
However, last week, the US President said he is lining up a tariff of 25% on EU goods to be announced “very soon”.
Campari’s €90m-100m estimate does not account for any “potential mitigation actions” that may be taken by the business, that “are currently under assessment”, the Espolon Tequila maker said.
From March, the Wild Turkey distiller added it “expected” a possible €35m impact for the year from tariffs for Canadian and Mexican imports into the US.
Campari’s net sales grew 2.4% organically and 5.4% on a reported basis in 2024 to €3.07bn.
Gross profit, corresponding to 57.6% of net sales, increased 3.9% on a reported basis and was up 2.4% organically to €1.8bn.
Profit before taxation slid a significant 45.2% to €256m, while, in adjusted terms, it dipped 3.9% to €523m.
Group net profit slumped 39% to €202m. Reported group adjusted net profit declined 3.7% to €376m.
EBITDA dropped 20% to €520m, while adjusted EBITDA grew a meagre 0.5% to €732.6m.
Campari booked net sales growth in all but one of its markets – APAC. The region, which makes up 7% of group sales, saw a 5.9% reported decline and 5.8% organic dip in total net sales in the 12 months.
The group’s Americas market, which accounts for 45% of group sales, and EMEA, which makes up 47.7%, saw net sales increase 8.3% and 4.2% respectively.
In terms of categories, the Grand Marnier brand owner also reported a 6.6% net sales decline in its House of Whiskeys & Rum division for the full-year.
In its results presentation, the group said the business unit saw “ongoing soft performance” in the US and Australia for Wild Turkey and Russell’s Reserve.
Campari also pointed to a “decline in Q4” in its Jamaican rum portfolio “across all core markets due to supply constraints” and a “pressure across all other whiskey”.
Fourth-quarter net sales beat consensus coming in at €793m, which Stifel analysts described as “a relief after the huge 3Q24 miss”.
The business announced it would be grouping together its spirits under the Houses of Brands model in October.
At the time, Campari also revealed it would be implementing a new “cost containment” plan, which looks to improve margins by 200 basis points.
In February, the business then confirmed it was to carry out an “organisational restructuring” in a bid to improve its financial position.
The Milan-headquartered group said it envisioned 2025 as “a transition year”.
The business forecast continued “moderate organic full-year top-line growth”, accompanied by “an improving trend in the second half of the year”.
Campari expects its 2025 organic adjusted EBIT margin to be “directionally flat” and its adjusted EBIT performance is anticipated “to be skewed” into H2 “due to the adverse phasing” impact on gross margin improvement, spending on A&P and its efforts to bear down on SG&A costs.
