Campari and Pernod Ricard, cautious outlook for 2026
The two spirits groups focus on core brands
Key points
According to recent research by Circana, 71% of Europeans consume less alcohol, and 25% of young people (Gen Z) do not buy any at all. The trend in the US is not dissimilar and consumption levels are at an all-time low. What to do for the leading spirits companies? Italy's Campari showed little change in sales in 2025 (-0.6% to EUR 3,051.2 million, but +2.4% on an organic basis as the exchange rate effect was negative for 2.4%), but Ebitda jumped 37.7% to EUR 715.9 million, Ebit by 44.6% to EUR 567.5 million, and net profit by a whopping 71.7% to EUR 346.3 million.
The key figures
It should be recalled that last year Campari benefited from proceeds from the sale of businesses totalling EUR 55.3 million, having embarked on a strategy of focusing on its core brands, which led to the sale of Cinzano vermouth and sparkling wine, Amaro Averna and Mirto Zedda Piras. Even on an adjusted basis for such non-recurring income, however, EBITDA would have increased by 7.2% to €785.2 million, EBIT by 5.3% to €636.9 million, and net profit by 2.7% to €386.1 million.The French giant Pernod Ricard, on the other hand, reported a 14.9% drop in revenue to EUR 5,253m (-5.9% at constant exchange rates and perimeter, as Pernod Ricard also sold some brands, notably the Indian whisky Imperial Blue) in the first half of FY2025/2026 (financial year-end 30/6 each year). Ebit fell 18.7% to EUR 1,614m (-7.5% on an organic basis) and net profit fell 17.4% to EUR 1,003m.
The Expectations
Campari's management expects to maintain a good pace of organic sales growth in 2026, while adjusted ebit is expected to rise moderately in organic terms due to the bringing forward of investments in advertising and promotion to the first part of the year and the effect of tariffs on the comparison basis (impact estimated at EUR 30 million). The group will continue to benefit from the cost containment programme; however, a negative external growth effect of approximately EUR 70 million on net sales and EUR 30 million on adjusted ebit is expected following the sale of non-priority brands. Pernod Ricard, for its part, believes that 2025/2026 will be a transition year but with revenues improving on an organic basis (the exchange rate effect will still be negative). It will continue its cost containment programme thanks to the Fit for Future programme (operating efficiencies of EUR 1 billion are expected between the current financial year and the one ending in 2029) and intends to make investments (capex) of around EUR 750 million. In the medium term, both groups expect an increase in revenues and margins thanks to their strong international presence and extensive brand portfolio.
