Davide-Milano NV shares surged over 6% after reporting FY25 results that outpaced analyst estimates, defying a sector-wide slump. The Italian spirits maker delivered organic sales growth of 2.4% and EBIT growth of 5.4%, exceeding Visible Alpha's consensus estimates of 1.6% and 1.9% respectively. Net sales reached €3.051 million, though a 3.0% foreign exchange headwind masked underlying performance. The board proposed a 54% dividend increase to €0.100 per share, while net debt to EBITDA fell to 2.5x from a peak of 3.6x, meeting leverage targets a year early.

CEO Simon Hunt attributed the results to strong momentum and accelerated deleverage, enabling the dividend hike. Adjusted EBIT reached €637 million at a 20.9% margin, with recurring free cash flow at €571 million. The fourth quarter showed accelerating growth, with 4.7% organic sales growth and 24.3% organic EBIT growth driving the full-year beat. Morgan Stanley raised its price target to €6.60, though flagged sustainability questions around quarterly drivers.

For 2026, Campari expects continued organic growth but faces headwinds including an estimated €30 million U.S. tariff impact and €70 million losses from brand disposals like Cinzano and Averna.