By Elisa Anzolin
MILAN (Reuters) -Italian spirits group Campari on Thursday warned of an up to 45 million euro ($51 million) hit from U.S. tariffs to earnings this year, as it reported a 2.9% increase in second-quarter adjusted operating profit.
European wine and spirits will face a 15% U.S. import tariff until a different deal is agreed in talks expected to continue in the autumn, the European Commission and EU diplomats said earlier on Thursday.
Campari, whose products include the popular Aperol aperitif, sees a negative impact from U.S. tariffs ranging from 4 million euros, were tariffs on EU products to be lifted, to 45 million euros, excluding offsetting actions.
The company is not considering any “meaningful” increase in prices given low U.S. consumer confidence, CFO Paolo Marchesini told analysts.
He added that shifting production to the United States in such an uncertain environment was not an option either.
CEO Simon Hunt said the weakening dollar, with the U.S. currency losing more than 10% of its value against the euro since January, posed a further challenge.
“I don’t think there’s a lot of pricing movements at the moment because the devalued dollar means that actually whatever tariffs come through are then getting an additional hit when it gets to shelf,” he told Reuters.
Hunt also said the group, which last month agreed to sell its historic Cinzano vermouth and its Frattina grappa brands for 100 million euros, was still working on streamlining its portfolio.
“We have a number of discussions that are ongoing with potential acquirers of some brands that we don’t see as a great fit with us going forward … but we are not in a hurry”, he said on a phone interview.
Campari’s adjusted earning before interest and tax (EBIT) totalled 352 million euros in the first half, above the 326 million euros of a Visible Alpha consensus.
Organic net sales rose 3.5% in the second quarter. In the first half, they were flat at 1.53 billion euros.
The group confirmed its 2025 guidance and said that the third quarter would be key to have a clearer picture, allowing Campari to update investors on strategic priorities in November.
($1 = 0.8748 euros)
(Reporting by Elisa AnzolinEditing by Keith Weir and Valentina Za)
