Analysis - Gruppo Campari still an "active consolidator"
Campari released its first-quarter results yesterday
Gruppo Campari might be on the look out for more acquisitions once it beds in latest buy Lascelles deMercado & Co, an analyst has said.
Campari closed the deal on the owner of the Appleton rum brand at the end of last year, spending US$409m on a tender offer. However, Nomura's Edward Mundy said in a note today (14 May) that the Italian company could buy another company “in the medium-term”.
“We still see Campari as an active consolidator in the sector,” Mundy said. “Although, in the short term, we think the company will focus on integrating the Appleton rum business.”
Mundy is confident of Campari's outlook, despite its “soft start to the year”. In first-quarter results, released yesterday, the group saw pre-tax profits slump by 25% as its performance in Italy suffered.
But, Mundy said he expects Campari to rally in the second half of the year as tough conditions in Germany and Australia recover. Italy will remain difficult for the full year, Mundy added.
For a full round-up of just-drinks' coverage of Campari's Q1 performance, click here.
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