Campari Group Sees Steady 2025 and Plans Growth-Focused 2026

Campari Group delivered solid results in 2025, with organic net sales up 2.4% to €3.051 billion and adjusted EBIT rising 5.4%. The company overcame challenges like a hurricane in Jamaica and U.S. tariffs by cutting costs and boosting margins. Accelerated deleveraging and strong cash flow (73% conversion) allowed Campari to raise its full-year dividend 54% (to €0.10/share). Looking ahead, CEO Simon Hunt says the group expects a “continued pace of underlying topline growth and improvement in profitability” in 2026.

Campari’s 2025 highlights included:

• Net sales of €3,051 m, +2.4% organic (+0.1% from acquisitions/disposals; -3.0% currency drag).
• EBIT (adj.) €637 m, +5.4% organic (margin 20.9%, +60 bps).
• EBITDA (adj.) €785 m, +7.6% organic (margin 25.7%).
• Net profit (adj.) €386 m, +2.7%; EPS €0.32 (+2.7%). Reported net profit jumped +71.7% to €346 m (after one-offs).
• Debt and cash: Net debt/EBITDA fell to 2.5x (from 3.6x); free cash flow was €571 m (73% of EBITDA).
• Dividend: €0.100/share, +54% (35% payout ratio).

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Brand Momentum and Marketing Investment

Campari credited much of its resilience to its brand portfolio. The press release notes growth “across 24 countries in all regions as well as all brand houses”, with sell‑out data showing share gains “especially driven by aperitifs and tequila”. In practice, this reflects strength in Campari’s global Aperol spritz franchise, ready-to-serve cocktails, and tequila brands (notably Espolòn). At the same time, Campari deliberately reinvested profits into marketing: gross margins improved (by ~100 bps) and cost cuts funded a higher ad spend. The company boosted advertising and promotion by about 1 percentage point of sales, “allowing reinvestment in brand building” consistent with its strategy. In short, Campari ramped up support for key brands even as it improved productivity, helping maintain customer demand in a tough environment.

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Tariffs, Currency and Market Environment

About half of Campari’s sales come from the U.S., so the company was affected by the 15% U.S. tariff on EU spirits and a weak dollar. Campari acknowledged that tariffs and currency swings “will hit earnings”, and industry analysts noted that drinks groups like Campari have seen profits “already taken a big hit” from these duties. For 2025, currency effects subtracted roughly 3% from reported sales. Nevertheless, Campari’s diversified portfolio and cost controls cushioned these shocks: adjusted operating profit still rose 5.4% despite the tariff load. Brand owners can infer that Campari managed pricing and mix to offset price pressures while continuing to grow volumes in most markets.

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2026 Outlook and Dividend Increase

Building on the momentum, Campari expects to outpace the broader spirits industry in 2026. Management projects similar organic topline growth and further margin improvement. Reflecting confidence in cash flow, the company announced a significantly higher dividend: €0.10 per share, up from €0.065 last year. This 54% hike signals strong earnings visibility and a conservative balance sheet. However, Campari did warn that 2026 profits will still face “negative effects” from tariffs, FX and disposal-related impacts. Executives stress that performance depends on stable conditions and continued execution of their brand-focused strategy.

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Strategic Focus Shifts

Importantly, Campari is shifting its long-term strategy. Instead of pursuing many small acquisitions (a hallmark of the previous CEO’s tenure), the company will “streamline its portfolio” and focus on “fewer bigger bets”. Recent board changes – including resignations of some long-time directors and addition of younger Garavoglia family members – were framed as a “generational handover”. This suggests that the founding family is refocusing on core brand equity rather than rapid expansion. In practice, Campari said it will reinvest in high-potential segments (aperitifs, tequila, ready-to-serve) and expand geographically, while ensuring financial discipline.

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Key Takeaways for Brand Owners and Marketers

Campari’s 2025 results and guidance offer several lessons for alcohol brand leaders. First, even in a slow market, strong brands can grow by focusing on consumer occasions (e.g. aperitif hour, tequila cocktails) and by investing in marketing. Campari increased its marketing spend as a share of sales to support its heroes, showing a consumer-centric approach. Second, managing costs and debt enabled the group to raise its dividend – a sign of financial health that reassures shareholders. Third, Campari’s pivot from acquisitive growth to core-brand focus highlights the value of a lean, profitable portfolio. As Campari’s CEO noted, the company will aim for “margin-accretive and cash-generative growth” through targeted innovation (new formats and cocktails) and expansion in key markets.

For C-suite executives in the drinks industry, Campari’s strategy underscores the importance of agility: shielding profits via cost efficiencies and pricing, while doubling down on standout brands. As competitors navigate tariffs and economic uncertainty, Campari is betting that a streamlined brand mix and disciplined spending will yield stronger returns. If these efforts succeed, the group expects to “win the first, shared and…third drink” – i.e. capture more occasions – and to deliver top-line and margin growth beyond market averages.