What is Growth Strategy and Future Prospects of Campari Group Company?

The company fully integrated its 2024 Sustainability Statement into its Annual Report, adhering to European Sustainability Reporting Standards (ESRS) and the EU Corporate Sustainability Reporting Directive (CSRD). This demonstrates a commitment to technologically-supported, transparent reporting.

Dedicated IT software is utilized to ensure compliance with European Single Electronic Format (ESEF) regulations for its annual accounts. This showcases the adoption of technology for regulatory adherence.

Product innovation and brand building are supported by marketing activities, such as the Aperol Spritz animation at Venice Marco Polo Airport in July 2025. This aims to boost brand visibility and encourage impulse purchases.

The launch of the Aperol Spritz ready-to-drink line in North America signifies a new avenue for growth. This expansion into convenient formats caters to evolving consumer preferences.

Ambitious sustainability goals are in place, including a 55% reduction in GHG emissions intensity (Scope 1 and 2) by 2025 and a 70% reduction by 2030, using a 2019 baseline. Total supply chain emissions (Scope 1, 2, and 3) are targeted for a 30% reduction by 2030.

The company aspires to achieve net-zero emissions by 2050 or sooner. This long-term vision underscores a commitment to environmental responsibility, often supported by data-driven operational efficiencies.

Campari Group anticipates 2025 to be a transition year with moderate organic top-line growth, expected to materialize more strongly in the second half. The adjusted EBIT margin is forecast to be flat.

The company projects a return to mid-to-high single-digit sales growth in the medium term. Key drivers include the ongoing premiumization trend, expansion in the tequila market, and the realization of efficiency gains.

For 2025, advertising and promotion expenditure is planned to rise to the historic range of 17-17.5% of sales, signaling a strong commitment to marketing and brand development.

The net debt to EBITDA-adjusted ratio stood at 3.4 times in Q1 2025, an increase from 3.2 times in 2024, reflecting ongoing strategic investments and acquisitions.

The first quarter of 2025 saw net sales of €666 million, with organic sales declining by 4.2%. This was attributed to macroeconomic volatility and the timing of the Easter holiday.

The acquisition of Courvoisier contributed €32 million to sales in Q1 2025, demonstrating its role in bolstering the top line and supporting the company's market expansion strategy.

Campari Group contends with well-established competitors like Diageo and Pernod Ricard. These rivals possess greater financial resources for research and development and more extensive distribution networks, particularly in key markets like North America and Asia.

Potential increases in alcohol taxes, stricter advertising regulations, and enhanced drunk-driving laws could negatively impact consumer demand and increase operational costs for Campari Group.

A significant risk for 2025 involves potential US tariffs on imports from Mexico, Canada, and Europe. Campari estimates these tariffs could lead to an annual financial impact of €90-100 million before mitigation efforts.

Disruptions, such as the 2024 hurricane's impact on Jamaican rum supply, highlight the vulnerability of Campari's supply chain, potentially affecting product availability and sales volumes.

The global slowdown in Cognac sales, particularly in the US and China, coupled with Chinese trade barriers, presents a challenge for the recently acquired Courvoisier brand, which was purchased at a high valuation.

Campari Group is undertaking organizational restructuring, including potential workforce reductions of approximately 10% globally, to address financial pressures and enhance efficiency. This initiative aims to improve operational performance.