Its new CEO Simon Hunt told Reuters in an interview after the results.
The decision marks a significant change in the company's investment strategy, which in the past has expected 50 percent of its growth to be driven by acquisitions.
"The main reason I decided to suspend M&A is our net debt (...), we need to continue to reduce it," said Hunt, who took over as CEO in January.
At the end of last year, net debt was about 3.2 times the group's Ebitda.
"Never say never, but for the next few years the priorities are to reduce leverage, focus on our core portfolio and optimize the brands we have already acquired," he added.
Campari's last big deal was the $1.2 billion acquisition of the historic French cognac house Courvoisier, completed in 2024.
The group is working out a new strategy and evaluating which brands it can divest and which it can expand into new markets, Hunt said, adding that the brands it has are great in a few markets and there is potential to expand them into many other geographies.
Among the brands most likely to be divested are those focused on one market.
Yesterday Campari warned of the potential impact of U.S. duties in what it said was a "year of transition" under the leadership of its new chief executive, who took over after his predecessor stepped down just months after taking office.
The group is considering what actions to take to contain the duties.
It is not yet clear how much of the price increase will be passed on to the end customer, because price elasticity depends a lot on what competitors will do, Hunt said.
The CEO added that the group is considering opportunities to expand production in the United States without losing the essence of its brand portfolio.
"There is always a balance between respecting our heritage and how circumstances have changed (...). What is the best way to get them (to U.S. consumers) at the right price and with the right quality?" said Hunt.
(Elisa Anzolin, translated by Laura Contemori, editing Claudia Cristoferi)
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