Campari's results miss expectations, uncertainty about tariffs weighed

MILAN (Reuters) - Italian spirits group Campari, posted a decline in revenue and adjusted operating profit in the first quarter, well below analysts expectations, partly due to the uncertainty about U.S. tariffs in an already struggling sector.

The maker of Aperol and Campari bitters said its net sales dropped to 666 million euros ($749 million) in the first three months of the year, at constant exchange rates and excluding acquisitions and disposals, also due to the timing of the Easter holiday.

In the United States, the largest market for the group, sales were down 11%, as the threat of tariffs led to destocking as well as logistic delays.

"The U.S. retailers at the moment are very cautious about what they are buying because they don't know what's going to happen", Campari's Chief Executive Simon Hunt told Reuters.

Logistic problems, such delays in collecting Espolon-branded tequila, have now been solved.

"We've seen a strong shipment month coming through in April, because some of those orders just went from March into April," he added.

A Visible Alpha analysts consensus expected net sales to increase to 686 million euros.

"Looking forward, we confirm that our previously provided guidance for 2025 remains our target, while recognising that visibility is low," Campari's CEO said in a statement, adding that the group is focused on the cost containment programme.

"We remain committed to deleveraging and streamlining the portfolio while not foreseeing acquisitions," he added.

Campari said that U.S. tariffs are expected to have a 25 million euro impact on the 2025 operating profit "before possible mitigation actions".

Hunt said the group hasn't made a decision about how much of the tariffs will be passed on the consumers and the group is not planning to move its production, since where the products are made is part of the brands' heritage.

First-quarter adjusted operating profit plunged by 17% organically in the same period, to 136 million euros.

($1 = 0.8891 euros)

(Reporting by Elisa Anzolin; Editing by Keith Weir, David Evans and Chizu Nomiyama)