Campari Group warns of potential US$107M EBIT impact from tariffs in 2025
ITALY – Campari Group has cautioned that tariffs on imports from Canada, Mexico, and the European Union could impact its earnings before interest and taxes (EBIT) by an estimated €90-100 million (US$96-107 million) in 2025.
The Aperol maker noted that this estimate does not factor in potential mitigation strategies, which are currently under assessment.
The U.S. government has already imposed tariffs on Canadian and Mexican imports, with President Donald Trump signaling a possible 25% tariff on European goods to be announced soon.
The uncertainty surrounding these measures has raised concerns about their potential effect on Campari’s financial performance.
Starting in March, the company expects tariffs on Canadian and Mexican imports into the U.S. to create an estimated €35 million impact on its business.
Despite these challenges, Campari Group reported positive sales growth in its 2024 financial results.
Net sales increased by 2.4% organically and 5.4% on a reported basis to reach €3.07 billion. Gross profit, representing 57.6% of net sales, rose 3.9% on a reported basis and 2.4% organically, reaching €1.8 billion.
However, the company faced significant profit declines. Profit before taxation dropped 45.2% to €256 million, while adjusted profit before taxation fell by 3.9% to €523 million.
Group net profit declined 39% to €202 million, while reported adjusted net profit slipped 3.7% to €376 million. EBITDA decreased by 20% to €520 million, while adjusted EBITDA recorded only a marginal increase of 0.5% to €732.6 million.
Campari experienced sales growth in most regions, except for the Asia-Pacific (APAC) market, which accounts for 7% of total sales. The region saw a 5.9% reported decline and a 5.8% organic drop in net sales.
In contrast, the Americas, which contribute 45% of total sales, grew by 8.3%, while the EMEA region, making up 47.7% of group sales, recorded a 4.2% increase.
By category, Campari’s House of Whiskeys & Rum division saw a 6.6% decline in net sales. The company attributed this to ongoing weak demand for Wild Turkey and Russell’s Reserve in the U.S. and Australia, as well as supply constraints affecting its Jamaican rum portfolio.
The company also reported “pressure across all other whiskey” categories.
Despite a weaker third quarter, fourth-quarter net sales reached €793 million, surpassing analyst expectations. Stifel analysts described the results as “a relief after the huge Q3 2024 miss.”
Looking Ahead
Campari has been restructuring its operations, consolidating its portfolio under the “Houses of Brands” model and implementing a cost containment strategy aimed at improving margins by 200 basis points.
The company also confirmed plans for an organizational restructuring to strengthen its financial position.
Looking ahead, Campari has described 2025 as a “transition year” and forecasts moderate organic full-year top-line growth, with an improving trend expected in the second half.
The company anticipates its adjusted EBIT margin to remain flat, with performance likely to be weighted toward the latter half of the year due to gross margin improvements, marketing investments, and cost-cutting initiatives.
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