Davide Campari-Milano NV reported robust full-year 2025 results, significantly surpassing analyst expectations and driving its shares up over 6%.
The Italian spirits maker achieved organic sales growth of 2.4% and organic EBIT growth of 5.4%, well above Visible Alpha consensus estimates of 1.6% and 1.9% respectively, defying a broader spirits sector downturn impacting rivals like Diageo and Pernod Ricard. Net sales reached €3,051 million, despite a 3.0% foreign exchange headwind.
The company's strong performance enabled a 54% increase in its full-year dividend to €0.100 per share and an accelerated deleveraging, with net debt to EBITDA falling to 2.5 times, meeting its target a year early. CEO Simon Hunt highlighted strong business momentum and enhanced shareholder returns.
Fourth-quarter acceleration, with 4.7% organic sales growth and 24.3% organic EBIT growth, was a key driver. While Morgan Stanley raised its price target to €6.60, it maintained an "equal-weight" rating, citing concerns about the sustainability of quarterly drivers, such as a discrepancy between Italian shipments and on-trade sell-out.
For 2026, Campari anticipates continued organic topline growth but projects headwinds from an estimated €30 million U.S. tariff impact and a €70 million topline reduction from non-core brand disposals.
