Italian Wine Brands presented its first-half 2026 results on September 22, revealing a margin squeeze even as the producer leaned harder into premium offerings. Total revenues fell to €175.3 million from the prior-year period, a 5.3% decline, with EBITDA contracting to €19.1 million on a 10.9% margin compared with €21.9 million at 11.8% in H1 2025. Net profit landed at €7.9 million, or a 4.5% margin, down from €10.3 million at 5.6% a year earlier.
The €9.8 million revenue drop was attributable to three channels: a €4 million decline in distance selling, a €3.4 million fall in wholesale volumes, and a €2.4 million shortfall in Ho.re.ca sales. Wholesale revenues totaled €127.2 million, down 2.6% but with volumes essentially flat at +0.13%. The Ho.re.ca channel fell 8.2% to €27.6 million, weighed heavily by the United States, where sales plunged 25.4%, and the United Kingdom, which slipped 8.9%. Italy's Ho.re.ca segment surged 43%, offsetting some of the overseas weakness. Distance selling dropped 16.2% to €20.5 million, though digital channels accounted for 47% of that segment's mix, up sharply from just 8% in 2017, while traditional teleselling fell to 15% from 51%.
Despite the headline declines, the company's top-tier brand portfolio continued to gain share. Top Brands volume grew 8.6% with revenue up 6.6%, and direct margin improved 70 basis points to 50.3%. These premium labels represent roughly 19% of B2B revenues but generate 31% of B2B margins. Exports accounted for more than 83% of total revenue, shipped to 97 destinations. Geographically, Italy contributed 70% of revenues, Europe 18%, North America 10%, and other regions 2%. The United States overall declined 14.1%, Eastern Europe grew 4.4% including Russia, and South America rose 15% led by Brazil.
Raw-material costs fell to €114.6 million from €120.7 million and services expenses declined to €28.8 million from €30.4 million, partially offsetting higher personnel costs of €13.9 million versus €13.1 million. Capital expenditure came in at €4.9 million, and the company returned €5.3 million via share buybacks and dividends. Net financial debt improved to €81.8 million from €90.5 million at June 30, 2025, a reduction of €8.7 million, leaving leverage at 1.77 times last-twelve-months adjusted EBITDA.
The company said additional production-cost savings of at least €1 million are expected in the second half from process automation, building on approximately €2 million in annual savings already achieved after closing two of five plants in 2024. Management set a longer-term target to raise premium product representation to at least 25% of total turnover from the current level of around 20%.
Shares declined 22.9% over the past year, falling from €22.40 to €17.28, underperforming peer Hawesko Holding AG, which fell 28.2%. Four brokers — Banca Akros, CFO SIM, IT ICAP and Equita — maintained "Buy" ratings with an average target price of €32. The company's market capitalization stood at approximately €160 million. Gruppo Pizzolo and A. Mutinelli together hold 74.9%, Provinco Srl holds 10.3%, and free float is 14.8%.
Looking ahead, Italian Wine Brands cited UIV Customs Observatory data projecting the basic and popular wine segments in Italy to contract 2.9% and 5.2% respectively through 2029, while premium and luxury segments are expected to grow 3.5% and 6.0%, against an overall market decline of 2.6%. The company also highlighted CAGR growth rates for sparkling and still wine of 7.6% in India, 6.4% in Vietnam, 6.3% in Mexico and 4.7% in China.
