Campari profits rise 2.9% despite Trump tariff pressures
Campari has reported higher second-quarter profits amid new 15% US tariffs on European spirits. The Italian group says it is maintaining 2025 guidance while streamlining its brand portfolio.
Signs of an upturn at Campari despite needing to negotiate the Trump tariffs in America, which came into force today.
On the upside, Campari reported a 2.9% upturn in second-quarter operating profits, but less positively, it warned that the 15% impost on shipments to America could cost it up to €54m this year.
EU officials confirmed on Thursday that talks are continuing with the White House about exempting European wines and spirits, but that they are unlikely to conclude until the holiday season is over.
Earnings beat expectations
The Italian group’s adjusted earnings before interest and tax totalled €352 million in the first half, above the €326 million consensus predicted by analysts.
Organic net sales rose 3.5% in the second quarter after being flat at €1.53 billion in the first three months of this year.
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The group confirmed its 2025 guidance and said that the third quarter would provide a clearer picture, so it will wait until November to update investors on new chief executive Simon Hunt’s strategic priorities.
No price hikes or US production shift planned
However, finance director Paolo Marchesini told analysts that there would not be any “meaningful” price rises because of consumer resistance, and he also ruled out moving some production to the United States to avoid tariffs while conditions remained so unclear.
The Americas provide about 44% of Campari’s sales, and encouragingly, in the April to June quarter, sales were 3% ahead of last year.
Hunt told Reuters that the dollar losing 10% of its value against the euro this year means “that actually whatever tariffs come through [products] are then getting an additional hit when it gets to shelf.”
Portfolio streamlining underway
Hunt also said the group, which is selling Cinzano vermouth and its Frattina grappa brands for €100 million, was still working on streamlining its portfolio, reversing 15 years of acquisitions.
“We have a number of discussions that are ongoing with potential acquirers of some brands that we don’t see as a great fit with us going forward … but we are not in a hurry”, he said.
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