Company Reports

Campari has benefited from industry trends over the past decade, namely the rise of aperitivo consumption outside Europe and demand for drinks with lower alcohol by volume. This is evidenced in the success of its aperitifs business in developed markets, with the share of Aperol doubling in the bitters category since 2015, according to Euromonitor.

Campari’s first-half results included organic revenue growth of 2.7% and adjusted EBIT growth of 8.5%. All brand houses reported growth except for whiskey and rum, which was down 6% due to category challenges in the US. The company updated its full-year profitability targets.

Campari’s first-quarter trading update included a 2.9% organic sales increase, below market expectations. All segments under its new reporting structure grew, except for its Asia-Pacific and Global Travel Retail segment. Global Travel Retail was down 13.5% because of geopolitical disruptions.

Campari has benefited from industry trends over the past decade, namely the rise of aperitivo consumption outside Europe and demand for drinks with lower alcohol by volume. This is evidenced in the success of its aperitifs business in developed markets, with the share of Aperol doubling in the bitters category since 2015, according to Euromonitor.

Campari’s 2025 results included broad-based organic revenue growth of 2.4% and adjusted EBIT margin expansion of 60 basis points. The company proposed a full-year dividend of EUR 0.10, implying a 35% payout ratio, up from EUR 0.065 in the prior-year period.

Campari’s full-year 2025 results included broad-based organic revenue growth of 2.4% and adjusted EBIT margin expansion of 60 basis points. The company proposed a full-year dividend of EUR 0.10, implying a 35% payout ratio, up from EUR 0.65 in the prior-year period.

Campari has benefited from industry trends over the past decade, namely the rise of aperitivo consumption outside Europe and demand for drinks with lower alcohol by volume. This is evidenced in the success of its aperitifs business in developed markets, with the share of Aperol doubling in the bitters category since 2015, according to Euromonitor.

Campari reported its third-quarter results, with 4.4% year-over-year organic sales growth and 1.3% operating profit growth. Management confirmed its full-year guidance of moderate organic top-line growth and flattish EBIT margin, which now includes a negative impact of EUR 15 million from tariffs.

Campari reported flattish organic net revenue growth and a 5.6% decline in adjusted EBIT for first-half 2025, with an improving trend in the second quarter. Shares fell around 2% intraday.

We’re transferring coverage of Campari, the world’s leading producer of bitters. The Aperol and Campari brands are the largest in the portfolio, making up 24% and 11% of fiscal 2024 sales, respectively. The rest of the portfolio contains global and niche brands across multiple spirits categories.

Campari has benefited from industry trends over the last decade, namely the rise of aperitivo consumption outside of Europe and demand for lower alcohol-by-volume, or ABV, drinks. This is evidenced in the success of its aperitifs business in developed markets, with the share of Aperol doubling within the bitters category since 2015, according to Euromonitor.

Davide Campari-Milano reported its first-quarter results, with organic sales down 4.2% year over year and adjusted EBIT down 310 basis points, below consensus. Management maintained its fiscal 2025 guidance, which does not include the anticipated hit from tariffs.

Shares of Diageo, Pernod Ricard, Rémy Cointreau, and Davide Campari-Milano fell on March 13 after US President Donald Trump threatened to impose a 200% tariff on several alcohol products from the European Union. This followed the EU’s retaliation against Trump’s 25% steel and aluminum tariffs in which the EU plans to impose a tariff on US whiskey, along with other industrial and farm products. On March 6, Trump postponed a majority of the 25% tariffs on imports from Mexico and Canada for a month. The situation is dynamic, with uncertainty about the magnitude of the hit to the spirits being exported to the US.

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.

No-moat Davide Campari-Milano reported results for the third quarter of 2024 that were in line with our expectations. Despite the persistent weak consumer spending environment, we remain impressed with the firm’s industry outperformance. However, we expect macro headwinds may weigh on results for the remainder of the year. Our long-term estimates remain unchanged, and with this, we maintain our EUR 9 fair value estimate. We prefer wide-moat-rated Diageo and Pernod Ricard, which trade at discounts to our fair value estimates and have broader portfolios.

On Sept. 18, no-moat Davide Campari-Milano announced the resignation of its CEO Matteo Fantacchiotti due to personal reasons. Fantacchiotti’s tenure as CEO was brief at just five months. He succeeded longtime CEO Bob Kunze-Concewitz. The firm has appointed CFO Paolo Marchesini and Business Development Officer Fabio di Fede as interim co-CEOs.

No-moat Davide Campari-Milano reported results for the first half of 2024 that were above our expectations for revenue and profitability. We remain impressed with the firm’s continued revenue outperformance against larger peers amid a weak consumer spending environment. Even with encouraging results, we maintain our EUR 9 fair value estimate as our long-term estimates remain unchanged. We prefer wide-moat-rated Diageo and Pernod Ricard, which trade at discounts to our fair value estimates and have broader portfolios.

Campari has been in the right place at the right time, operating at the intersection of premiumization and mixology, two secular growth drivers that we expect to continue in the medium term. The company has executed well, and its Aperol aperitif brand has doubled its global volume share to 5% during the last decade, and performed particularly well in Europe. There is a cyclical element to Campari's success, however, and we expect the company's exposure to on-premises channels and premium categories to mean revenue will be hit harder than most consumer products manufacturers in the event of a downturn in consumer spending.

Campari has been in the right place at the right time, operating at the intersection of premiumization and mixology, two secular growth drivers that we expect to continue in the medium term. The company has executed well, and its Aperol aperitif brand has doubled its global volume share to 5% during the last decade, and performed particularly well in Europe. There is a cyclical element to Campari's success, however, and we expect the company's exposure to on-premises channels and premium categories to mean revenue will be hit harder than most consumer products manufacturers in the event of a downturn in consumer spending.

Davide Campari-Milano reported full-year 2023 results in line with our expectations. Top-line growth continues to be strong, and Campari is outperforming its larger peers, including Diageo and Pernod Ricard, thanks to the share gains of its categories. Next year promises to be another year of outperformance, albeit amid an environment of slowing consumer spending. We are reiterating our no-moat rating of Campari and our EUR 9 fair value estimate. With Campari trading around 9% above our valuation as at the close of trading on Feb. 27, we prefer wide-moat-rated Diageo and Pernod Ricard, which both trade at slight discounts to our fair value estimates and have broader portfolios.