Campari faces slow start to 2025 under new CEO Simon Hunt

Sales dip in the key US market, and weak global demand weigh on the first quarter. The CEO remains optimistic despite a sharp drop in profit and tariff concerns. The post Campari faces slow start to 2025 under new CEO Simon Hunt appeared first on The Drinks Business.

May 9, 2025 - 10:48

Campari faces slow start to 2025 under new CEO Simon Hunt

Sales dip for Campari in the key US market and weak global demand weighs on the first quarter. The CEO remains optimistic despite a sharp drop in profit and tariff concerns. Bottle of Campari. Sales dip in the key US market, and weak global demand weigh on the first quarter. The CEO remains optimistic despite a sharp drop in profit and tariff concerns.

The first quarter of 2025 gave Davide Campari Milano’s new CEO, Simon Hunt, the difficult start he no doubt expected when he took on the role. Despite historically being the group’s slowest quarter for net sales, they dropped to €666 million (US$749 million) in the first three months of the year, excluding acquisitions and disposals. In total terms, that was a rise of 0.3%, but organically sales were 4.2% lower than in 2024. Pre-tax profit for the quarter fell by 26% to €106,7 million.

Performance misses analyst expectations

This outcome was well below analysts’ sales expectations of €686 million, with the weak performance partially due to the later timing of the Easter holiday but mainly the result of continuing depressed consumer demand, notably in the US.. In the United States, which accounts for almost half of the group’s business, sales fell by 11% in the quarter. Hunt said in an interview: "The US retailers at the moment are very cautious about what they are buying because they don't know what's going to happen". However, he confirmed that the group had solved some problems, such as logistics delays affecting Espolon tequila. "We've seen a strong shipment month coming through in April, because some of those orders just went from March into April," he added.

Outlook cautiously optimistic despite tariff threat

Despite the poor start to the year, Hunt was positive about the outlook despite the anxieties about US tariffs, which the group calculates could hit this year’s operating profit by €25 million "before possible mitigation actions". "Looking forward, we confirm that our previously provided guidance for 2025 remains our target, while recognising that visibility is low," Hunt said, emphasising that the prime focus is on cost containment. He said the group has not decided how much of the tariffs will be passed on the consumers and that it is not planning to switch any production to the US to avoid potential tariffs because where the products are produced is an integral part of their heritage and image to the consumer. He also confirmed that Campari was determined to reduce its debt level following the purchase of Courvoisier Cognac, and he also hinted that the Italian group wanted to “streamline the portfolio”.