Italian Wine Brands (IWB) H1 2025 earnings summary

Executive summary

• Revenues for 1H 2025 were €185.1m, down 3.2% year-over-year, but record net profit of €10.3m (+13.4%) and strong cash generation were achieved.

• Adjusted EBITDA reached €21.9m, maintaining an 11.8% margin, with EBITDA at €21.0m (+3.3%).

• The asset-light, market-driven model enabled flexibility, with over 80% of turnover from exports and a portfolio of 70+ brands.

• Cash generation before dividends and buybacks totaled €30m over the last 12 months.

Financial highlights

• Net result was €10.3m, up 13.4% year-over-year, with adjusted net profit at €11.0m (+6.9%).

• Adjusted EBITDA reached €21.9m, up 3.3% from 1H 2024, with an 11.8% margin.

• Free cash flow for 1H 2025 was €11.4m, and free cash flow yield exceeded 16% on the average share price in the last month.

• Net financial position improved to €78.0m, with net debt reduced to €90.5m, down €17.6m from June 2024.

• Ho.Re.Ca revenues grew 8.8%, while distance selling and wholesale channels saw mixed trends.

Outlook and guidance

• Focus remains on premium, sparkling, and organic wines, with continued expansion in the US and emerging markets.

• Management targets further improvement in net financial position and ongoing M&A to drive growth.

• Plans to grow top brand sales, optimize production costs, and strengthen international sales and marketing.

• Sustainability and digitalization are key pillars, with a CSRD report due by end of September.