TFF Group FY 2025/26 Results and Outlook
Tonnellerie Francois Freres SA (EPA:TFF), the French producer of premium oak barrels for the wine and spirits sector, posted revenue of €312.7 million for the year ended 30 April, representing a 26.5% decline from the prior year. Net profit contracted sharply to €9.2 million, a 71.1% drop year‑on‑year, while EBITDA fell 40.4% amid weaker demand across both its wine and spirits businesses. The company attributed the downturn to persistently weak global wine and spirits markets, a poor harvest, cautious customer spending, U.S. tariffs that reduced investment by American wineries, and a weaker U.S. dollar that pressured reported sales.
Within the spirits segment, the bourbon business saw barrel volumes fall 28%, and the Scotch whisky operations were hit by softer demand and lower cask‑trading prices. The wine business continued to experience subdued activity across several key export markets. Looking ahead, management indicated that activity is expected to decline again in fiscal 2026/27, though at a more moderate pace than the current year, suggesting that a recovery in end‑markets remains some way off.
To preserve financial flexibility, the board proposed reducing the annual dividend to €0.40 per share from €0.50. The market reacted negatively, with TFF Group shares dropping 4.3% to €15.60 in Paris trading, underperforming the CAC 40 index, which rose 0.4%.