Company Performance - TFF Group reported a significant decline in sales of approximately 25% and a net profit decrease of 33% for the first six months [1] - The operating leverage was noted to be modest, with a previous year’s 9% sales decline resulting in a 40% profit decline, indicating better cost management this year [1] - Wine sales performed relatively better than Bourbon Whisky, which experienced a sharp drop in production [1] Market Outlook - The market had anticipated the poor performance, and TFF's outlook for the remainder of the financial year is somewhat optimistic, projecting a full-year revenue decline of 20-25% [3] - Analysts expect earnings per share (EPS) of 1.25 EUR for FY 2026/2027 and 1.62 EUR for 2027/2028, which may support the current share price [4] Industry Developments - The EU has signed a trade agreement with the Mercosur region, removing tariffs on spirits and wines, which were previously 17% on wine and 20-35% on spirits [6] - The agreement may benefit European spirits producers, particularly for products like Cognac and Campari's Aperol, while the impact on wine producers remains uncertain due to competition from Argentina and Chile [7][9]

Core Viewpoint - Lagfin, the Luxembourg-based holding company controlling the majority of Campari's voting rights, has agreed to pay €405 million ($474.5 million) to settle a tax dispute in Italy to protect the interests of all Campari shareholders [1]. Group 1: Tax Dispute Details - Lagfin had €1.3 billion ($1.49 billion) worth of shares seized by Italian authorities due to allegations of tax evasion [1]. - The Italian financial police enforced a precautionary seizure order over €1.29 billion of shares, claiming that capital gains exceeding €5.3 billion were left undeclared after Lagfin absorbed its Italian subsidiary [2]. - Lagfin maintains that it has always complied with applicable regulations, including Italian tax laws, and asserts that the exit tax was not applicable [3]. Group 2: Settlement Agreement - Lagfin will make an initial payment of €152 million by the end of the year, with the remaining amount to be paid in equal quarterly installments between June 2027 and September 20, 2029 [4]. - The company believes that litigation could have negatively impacted Campari's share price, despite Lagfin's confidence in prevailing in court [4]. Group 3: Corporate Purpose - Preserving control of Campari is central to Lagfin's corporate purpose, and the company aims to safeguard the interests of current and future investors [5].

Core Viewpoint - Campari asserts that it is not affected by the ongoing tax dispute involving its controlling shareholder Lagfin, despite the seizure of shares worth €1.3 billion ($1.49 billion) by Italian authorities due to alleged tax evasion [1][3][4]. Group 1: Tax Dispute Details - Italian financial police executed a precautionary seizure of €1.29 billion of shares from Lagfin, claiming that capital gains exceeding €5.3 billion were not declared and taxed as required by law [2]. - The tax dispute has been ongoing for approximately two years and has never involved Campari Group directly [4]. Group 2: Company Statements - Campari Group clarified that the tax litigation does not concern Davide Campari-Milano or its subsidiaries, indicating no expected impact on the company [3]. - Lagfin expressed confidence in its compliance with applicable laws and regulations, asserting that it will defend itself vigorously in legal forums [4]. Group 3: Market Reaction - Following the news, shares of Campari, known for brands like Aperol and Courvoisier, fell by 3.54% [5].

Core Viewpoint - Italian tax police are seizing assets worth 1.29 billion euros ($1.5 billion) from Lagfin, a Luxembourg-based holding company, as part of a fraud investigation related to tax evasion allegations against the company [1][2]. Company Summary - Lagfin is the controlling shareholder of Campari Group, which is a major player in the premium spirits industry, founded in 1860 [1][2]. - Campari Group owns several well-known brands, including its namesake red aperitif, Aperol, Grand Marnier, tequilas, and various American bourbons [3]. - Lagfin holds more than 80% of Campari's voting rights and claims that the seizure will not affect its position as the controlling shareholder [2]. Investigation Details - The investigation was initiated following a tax audit after Lagfin absorbed its Italian subsidiary, leading to allegations of tax evasion [2]. - Lagfin has stated that the investigation is linked to a tax dispute that began approximately two years ago and has not involved Campari Group directly [2]. - Lagfin asserts that it has always complied with applicable laws and regulations, including Italian tax laws, and plans to defend itself vigorously [2].

Executive Reshuffle - Campari Group is undergoing a leadership change as CFO and COO Paolo Marchesini transitions to vice chairman of the board, with Francesco Mele set to take over as CFO in Q4 2025 [1][4] - Marchesini's previous role will be divided, with Mele managing finance, global business services, and IT, while the global supply chain will be overseen by CEO Simon Hunt [2] Leadership Contributions - Marchesini has been credited with significant contributions to Campari's organic and external growth during his tenure, including leading the company on an interim basis after a previous CEO's departure [3] - The chairman of Campari expressed gratitude for Marchesini's hard work and contributions to the company's success over the decades [3] Incoming CFO Profile - Francesco Mele, the incoming CFO, previously served as chief investment officer at CDP Cassa Depositi e Prestiti and has experience as CEO of CDP Equity [4] Financial Performance - In the first half of the year, Campari reported net sales of €1.53 billion (approximately $1.75 billion), reflecting a 0.3% year-on-year increase [5] - EBIT increased by 1.6% to €340.9 million, while adjusted EBIT declined by 2.3% to €352 million [5] - The group's net profit decreased by 6% to €206.4 million [5] Asset Sale - In June, Campari reached an agreement to sell assets, including the vermouth brand Cinzano, to Italian distiller Caffo Group 1915 [6]

Is there more to a refreshing spritz than Aperol? And how can you find your favorite rosé? Forbes’ spirits contributors share the cocktails, wines and beers that make summer drinking fun.Read more: https://t.co/rlucMNTzUp(Photo: Getty Images) https://t.co/v9Bbb2AWSW ...