TFF Group: Revenue Down 36.4% in First Quarter of 2026/2027
Barrel and cask manufacturer TFF Group published on September 15, 2026 revenue of €56.9 million for the first quarter of its 2026/2027 fiscal year, down 36.4% year-on-year. The decline affects both divisions of the group and is part of an adjustment in the global alcoholic beverage market, marked by customer destocking and a slowdown in production, particularly in the United States.
Both Divisions Decline, American Activity Under Pressure
Over the first three months of the fiscal year, ended July 31, 2026, consolidated revenue stood at €56.9 million, compared to €89.4 million a year earlier, representing a decline of 36.4% on an unadjusted basis and 36.2% at constant exchange rates. The Wine division achieved €35.0 million, down 32.9% (also 32.9% at constant exchange rates). The group attributes this decline to weak American demand, facing a low dollar environment and high inventory levels, as well as billing delays in the United States. The Spirits division came in at €21.9 million, down 41.2% (40.9% at constant exchange rates). Within this division, Bourbon activity declined by 46%, a steeper decline than expected, linked to the prolonged closure of certain distilleries which reduced the group's delivery pace during the quarter.
Customer Destocking and Production Capacity Reduction
TFF Group describes a global alcoholic beverage market continuing its adjustment, with customer destocking, a recalibration of production capacities and greater selectivity in demand. The slowdown in the spirits market in the United States has fueled inventories and led industry players to reduce their production pace. The Whisky division also posted declines, though at a less sustained pace than in the previous fiscal year, with negative volume and price effects. In Europe, projections for the 2026 harvest are expected to decline following the summer heat and drought. According to the group, the early maturity of the vintage made it possible to maintain activity volume levels. As a reminder, the group achieved revenue of €312.7 million and EBITDA of €48.2 million in its 2025/2026 fiscal year.
Another Year of Decline Expected, End of Downturn Cycle Anticipated Around 2028
The group indicates that fiscal year 2026/2027 will be another year of decline in its results, due to an expected further decline in revenue. Annual business projections are now affected by a scenario of a decline in the 2026 wine harvest in Europe. TFF Group emphasizes its commitment to maintaining operational discipline to navigate through the end of the expected downturn cycle around 2028, while preserving its financial strength and medium-term rebound potential. Regarding the Bourbon division, the gradual reopening of distilleries should allow a return to the expected activity pace from the third quarter onwards. The group also announced, on September 7, 2026, the launch of TFF Upcycling, a subsidiary dedicated to the recovery, valorization and commercialization of barrels that vineyard estates no longer need. The next publication, the half-year results, is scheduled for January 6, 2027.
