Gruppo Campari reported a flat organic net revenue growth and a 5.6% decline in adjusted EBIT for the first half of 2025, with an improving trend in the second quarter. Sales in the Americas declined 1% but grew 4% in the second quarter, led by aperitif and Espolòn tequila sales in the United States. In Europe, Middle East, and Africa, sales rose 1%, outperforming the market. Asia-Pacific sales increased by 4%, with Australia leading at 10%. Campari sold Cinzano vermouth during the period amid the alcohol industry downcycle. Management reaffirmed its medium-term targets, including a return to mid- to high-single-digit organic net sales growth and EBIT accretion. Campari expects a negative impact from tariffs of between EUR 4 million and EUR 45 million, with a potential 80-basis-point hit to operating margin in fiscal 2025. Despite these challenges, Campari maintained its full-year guidance with moderate sales growth and a flat operating margin year over year. Distillers like Campari are experienced in mitigating tariff hikes, so the long-term impact on profitability is not expected to be significant.

Read more at Morningstar: Guidance Reaffirmed While the Environment Remains Opaque