Davide Campari-Milano N.V. (BIT:CPR) shares climbed more than 6% on Thursday after the drinks maker reported full-year results that exceeded analyst expectations, standing out in a sector downturn that has recently pressured competitors such as Diageo plc (LSE:DGE) and Pernod Ricard S.A. (EU:RI).
For the year ended 31 December 2025, Campari posted organic sales growth of 2.4% and organic EBIT growth of 5.4%, outperforming Visible Alpha consensus forecasts of 1.6% and 1.9% respectively. Net sales reached €3.051 billion, although a 3.0% foreign exchange headwind partly offset the underlying performance.
The board proposed a full-year dividend of €0.100 per share, a sharp increase from €0.065 previously. At the same time, the group’s net debt to EBITDA ratio declined to 2.5 times from a peak of 3.6 times recorded in September 2024, allowing the company to reach its leverage target one year earlier than planned.
“Strong business momentum and accelerated deleverage one year ahead of plan allowed us to step-up our dividend payout to further enhance shareholder returns,” said Simon Hunt.
Adjusted EBIT came in at €637 million, representing a margin of 20.9% and organic improvement of 60 basis points. Recurring free cash flow reached €571 million, with a conversion rate of 73%. Adjusted diluted earnings per share were €0.32, reflecting growth of 2.7%.
A strong final quarter contributed to the full-year outperformance, with organic sales increasing 4.7% and organic EBIT rising 24.3% in the fourth quarter.
Analysts at Morgan Stanley raised their price target for the stock to €6.60 from €6.30, describing the results as “a very strong end to the year,” while maintaining an “equal-weight” rating. The bank also highlighted some uncertainty around the sustainability of recent growth drivers, noting that shipments in Italy increased 5% in the fourth quarter even as on-trade sell-out declined 1%.
Looking ahead to 2026, Campari said it expects organic revenue growth to continue at a similar pace. However, the company warned of a potential €30 million impact from U.S. tariffs over the full year, as well as an estimated €70 million revenue headwind related to the disposal of non-core brands such as Cinzano and Averna.
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