Despite a decline in Jamaican sales volume during the first half of 2025, Davide Campari-Milano NV (Campari Group), parent company of J Wray & Nephew Limited, expects an improvement in rum capacity to local and export markets.

This was the message by recently appointed Chief Executive Officer (CEO) Simon Hunt on the company’s July 31 earnings call. J Wray & Nephew experienced a five per cent increase in revenue to €36.3 million ($6.10 billion) on its domestic sales in the Jamaican market, but there was a reduction in sales volume for the second quarter (April to June). The Jamaican rums portfolio also saw a revenue decline to €41.9 million ($7.05 billion) as the business tried to catch up on orders after the supply shortages experienced during 2024.

“Jamaica recorded negative 2 per cent change in the first half with a negative 8 per cent in Q2 impacted by a high comparison base of plus 32 per cent from last year. At the same time, the local market dynamics are very positive and supportive of the core Wray & Nephew overproof rum and Magnum Tonic Wine. And thanks to the completion of the Dunder water treatment facility within 2025, we expect to have increased capacity and increased resilience against potential weather events starting from 2026,” Hunt explained on the Jamaican business.

J Wray & Nephew’s White Overproof Rum and its Charley’s JB White Overproof Rum were in short supply during 2024 as production was hampered by environmental restrictions on how it stores and uses dunder, the waste product from rum production, and its decision to prioritise its premium Appleton Estate brand aged rums for the export market. The increased rainfall and passage of Hurricane Beryl were also factors that contributed to the two per cent decline in Jamaican sales to €148.2 million ($25.09 billion) and five per cent decline in the Jamaican rums portfolio to €147.1 million ($24.90 billion).

J Wray & Nephew invested US$65 million ($10.2 billion) during 2024 into a treatment plant at its New Yarmouth distillery in Clarendon, a central parish in Jamaica. The company also invested €9.3 million ($1.61 billion) during the first half (January to June) of 2025 into non-recurring capital expenditure, with €6.7 million ($1.16 billion) related to sustainability-related investments. The report mentioned that the Jamaican distilleries were focused on upgrades to the local utility infrastructure, including high-efficiency heat and power generation, a new steam plant, and water reuse systems as some of the environmental initiatives. J Wray & Nephew recently opened a premium rum museum at its 23 Dominica Drive offices.

For the overall six months period, revenue dipped eight per cent to €71.2 million ($12.30 billion) with the Jamaican rums portfolio experiencing a five per cent rise to €78.3 million ($13.52 billion). Net sales to third parties for Jamaica was down five per cent to €86.4 million ($15.44 billion) with non-current non-financial assets rising one per cent to €319.9 million ($57.16 billion).

“The positive trend in Jamaican rums continued in Q2 with plus 5 per cent growth despite the high comparison base as recycle the volatility that the hurricane caused last year. This is driven especially by Wray & Nephew overproof, with ongoing strong underlying momentum. Having just seen the business on the ground in Jamaica and talk to many counterparts in government and in the trade, it’s clear that this brand is truly part of the DNA of the country,” Hunt added.

Despite the positive expectations for the Jamaican business, the Campari Group is estimating a €1-million ($172.69-million) impact during 2025 related to the United States of America’s base tariff of 10 per cent. The annualised impact for the Jamaican business is currently estimated at €2 million, which is the same figure that Campari stated as the actual impact to the Jamaican and European businesses for the first half of 2025.

Campari is currently estimating a €21-million hit in 2025 from the current US tariff rates which would rise to €37 million on an annualised basis. These tariffs are set to impact the earnings guidance that Campari has set for the 2025 period.

“But the current devaluation of the dollar means that if you’re running at a 10 per cent or 15 per cent or 20 per cent or whatever the tariff range is, you’ve then got a negative FX impact on it as well, which means that the ability to offset some of this is quite limited,” Hunt responded to Bank of America analyst Andrea Pistacchi on the tariff concerns.

Campari’s consolidated revenue for the six months was up one per cent to €1.82 billion with the recently acquired Courvoisier cognac brand contributing €61.8 million. A 10 per cent increase in advertising and promotional expenses resulted in operating profit rising at one per cent to €340.9 million. Due to a 31 per cent rise in finance expenses to €59.6 million, the group’s consolidated net profit declined five per cent to €205.7 million, with €206.4 million attributable to shareholders.

Campari’s stock price traded at €6.58 on Tuesday which leaves it up eight per cent in 2025 with a market capitalisation of €8.10 billion. Campari spent €21.7 million during the first six months on its share buyback programme at an average price of €5.5. The group also paid a €78-million dividend on April 24.