TFF Group Shares Tumble After 71% Profit Drop, Weak Outlook

Shares in Tonnellerie Francois Freres SA (EPA:TFF) fell sharply on Thursday after the French barrel manufacturer reported a steep plunge in annual profit and warned that it expects another challenging year amid weak demand from the wine and spirits industries.

In Paris trading, TFF Group shares fell 4.3% to €15.60, underperforming the broader CAC 40 index.

Annual Earnings Decline

For the fiscal year ended April 30, TFF Group reported a significant downturn in its financial performance, reflecting a difficult market backdrop. The company attributed the results to persistently weak global markets, a poor harvest, and cautious customer spending.

Key figures from the report include:

• Net profit: €9.2 million, a decrease of 71.1% from the previous year.
• Revenue: €312.7 million, down 26.5%.
• EBITDA: A decline of 40.4%.

External factors, including U.S. tariffs that curbed investment by American wineries and a weaker U.S. dollar, also weighed on the company's reported sales.

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Headwinds in Key Segments

The company's spirits division faced particular pressure. Revenue from its bourbon business fell sharply as barrel volumes declined by 28%. Similarly, its Scotch whisky operations were negatively impacted by softer demand and lower cask trading prices.

The wine business also experienced subdued customer activity across several key export markets as clients delayed investments.

Cautious Outlook and Dividend Cut

Looking ahead, TFF Group's management said it anticipates another decline in activity for the 2026/2027 fiscal year, although it expects the pace of the decline to be more moderate. This suggests a recovery in its end markets remains some distance away.

In a move to preserve financial flexibility, the company also proposed reducing its annual dividend to €0.40 per share from €0.50.