Italian spirits group Campari has warned of the potential hit from US tariffs in what it said would be a 'transitional year' under its new chief executive.
The spirits industry is facing a prolonged downturn in demand and concerns about tariffs, which led Diageo to withdraw its sales growth target and Pernod Ricard to cut its sales forecasts in February.
The Italian group expects moderate organic growth in revenues, and operating margins to be mainly flat this year.
The maker of Aperol and Campari bitters said its adjusted operating profit dropped 2.5% last year on an organic basis, in the first set of results approved under new chief executive Simon Hunt who took up the role only in January.
The group expects the potential annual impact of 25% tariffs on imports from Mexico, Canada and Europe into the US to be around €90-€100 million before any 'potential mitigation actions' which the group is assessing.
US President Donald Trump's new 25% tariffs on imports from Mexico and Canada took effect on Tuesday and he has also promised additional tariffs on the European Union.
Performance Highlights
Campari reported a 2.4% increase at constant exchange rate in like-for-like sales, to €3.07 billion ($3.23 billion), a touch above analysts consensus, which expected an increase to €3.02 billion according to LSEG data.
"Looking forward, following a transition period in 2025, we are very confident in our ability to deliver long-term sustainable outperformance," new CEO Hunt said in a statement.
He added that he sees significant potential for geographic expansion, but at the same time he wants to focus on "efficiency and commercial execution while ensuring balance sheet and operating deleverage".
Campari confirmed its medium-term guidance.
Campari appointed Hunt as chief executive to replace Matteo Fantacchiotti, who resigned in September after only a few months in the role.
