Campari Earnings: Impressive 2024 Outperformance but Looming Tariffs Make 2025 Uncertain

We maintain our EUR 9 per share fair value estimate for no-moat Davide Campari-Milano after the firm reported its full-year 2024 results that were in line with our expectations. The firm outperformed its larger peers on revenue over the challenging macroeconomic year, thanks to strength in aperitifs. For fiscal 2025, management expects moderate organic sales growth, with an improving trend in the second half of the year. EBIT margin is expected to be flat year over year, with a step up in advertising and promotion spending offsetting cost efficiency measures. We continue to view the stock as undervalued.