Italian Wine Brands (IWB) H2 2025 earnings summary

Executive summary

• Revenues reached €395.9 million in FY 2025, with volume growth of 3.65% despite global wine market contraction and macroeconomic headwinds; Ho.Re.Ca. and wholesale channels led growth, while distance selling declined.

• Adjusted EBITDA was €49.1 million (-2.5% YoY), adjusted net result €25.6 million (+1.1%), and reported net profit €16.6 million, down 26.7% due to non-recurring items.

• Strong cash generation improved net financial position, with net debt (third-party lenders) down 43% to €43.1 million and leverage below 1x.

• Achieved leadership as Italy's largest Prosecco producer, expanded into no/low alcohol and organic products, and maintained premium positioning.

• Flexibility, diversification, and disciplined execution supported resilience and profitability.

Financial highlights

• Revenues: €395.9 million, down 1.5% YoY; volumes up 3.65% to 158.7 million bottles.

• Adjusted EBITDA: €49.1 million (-2.5% YoY), margin at 12.3–12.4%; adjusted net result: €25.6 million (+1.1% YoY).

• Outstanding cash generation, with free cash flow yield exceeding 22% and cash/equivalents at €90.2 million.

• Dividend of €0.50 per share proposed for 2025.

• Net debt/Adjusted EBITDA improved to 0.88x from 1.5x.

Outlook and guidance

• 2026 priorities: organic growth via brands, premium positioning, product innovation, and international expansion, especially in sparkling and premium red wines.

• New Marketing Department and domestic market team established; investments in new plants and equipment planned.

• Continued investment in efficiency, automation, digitalization, and sustainability; CapEx to remain stable.

• No formal quantitative guidance; early 2026 trading in line with prior year, with expectations for volume growth.

• Management sees 2026–2028 as a period of extraordinary opportunity to strengthen margins and global presence.