Davide Campari-milano N.v Stock Earnings Reports

Campari delivered a solid 2025 with top-line, margin and profit expansion despite a challenging operating environment. Organic net sales grew +2.4% (roughly +3% ex-Jamaica hurricane), with sell-out outperformance and share gains across many markets and channels (notably strong on-premise performance in the U.S.). Gross margin improved by 100 bps organically and adjusted EBIT margin expanded by 60 bps, supported by input-cost benefits (agave) and cost-containment programs. Management is increasing brand investment (A&P to 17.9% of sales) to back a portfolio of fewer, bigger bets (Aperol identified as the champion) while pursuing efficiency targets (200 bps SG&A benefit by end-2027; 70 bps delivered in 2025). Free cash flow conversion was strong at 73% (EUR 571m) and net leverage fell to 2.5x, a year ahead of plan; extraordinary CapEx is winding down with remaining tail in 2026 (Kentucky distillery). Strategic actions include portfolio streamlining (disposals like Averna/Zedda Piras), geographic expansion (APAC, developing markets), innovation (Aperol on Tap, RTD/RTS), and a disciplined capital allocation stance: dividend per share raised from EUR 0.065 to EUR 0.10 (payout 35%), limited near-term bolt-on M&A. 2026 outlook assumes a stable but still volatile environment: continued outperformance and mid- to high-single-digit medium-term top-line ambition, contained organic EBIT accretion with skew to H2 due to front-loaded A&P, an estimated ~EUR 30m U.S. tariff impact in 2026, and continued focus on deleverage and shareholder returns. Key risks: tariff headwinds, retailer disruptions (notably Germany), weather/natural disasters (Jamaica hurricane), pricing volatility in key categories and general macro/geopolitical uncertainty.