Focus - Gruppo Campari's Q3 & YTD Performance
Gruppo Campari saw a slowdown in its falling profits
In the first nine months of the year, the region (42.4% of total group sales) posted an overall sales growth of 35.9%. In the US (20.9% of total group sales) sales increased organically by 3.7%, driven by double digit growth in the Wild Turkey portfolio, behind Wild Turkey Bourbon and American Honey and Campari.
Sales in Brazil (5.1% of total group sales) posted a sales drop of 0.5%, driven by the slowdown of local brands (Dreher, Old Eight and Drury’s), which was in part offset by the continued strong performances of the Skyy, Sagatiba and Campari premium brands.
Campari's domestic market of Italy (25.4% of total group sales) saw an overall sales drop of 5.6% in YTD. The group blamed weak consumption trends. Performance was driven by a continued sustained growth of Aperol (10.2%) and a strong recovery of the other key brands (Campari, Campari Soda and Skyy Vodka) in the third quarter of the year. Campari's wine portfolio declined in the first nine months of the year, suffering from a continued slowdown in the restaurant channel. Soft drinks were also heavily affected by the overall slowdown in consumption, Campari said.
In YTD Germany posted a 4.9% sales drop, as the expected softness of Aperol was “not entirely” offset by the continued positive growth across the rest of core spirits portfolio, Campari said.
Russia was up 30.3% in YTD sales, showing strong results across the key Cinzano and Mondoro brands.
The UK and Belgium showed a “positive trend” driven by Aperol, Campari said.
Rest of the World
In Australia, organic sales fell by 6.8% in the first nine months of the year, although third-quarter trends showed an improvement, Campari said. The drop was due to the weak shipments of Wild Turkey. A “positive development was also achieved” in the region’s other key markets, including China, New Zealand, South Africa, Nigeria and Global Travel Retail.
Campari posted an organic growth of 7.1% in YTD sales on the back of improving trends in Italy as well as continued strong performances in Argentina, the US, Germany and Nigeria. Aperol had an organic sales fall of 2.5%, but rebounded in Q3, up 13.4%. Skyy sales grew organically by 1.8%. Wild Turkey sales were up organically by 4.7%, thanks to double digit growth in US, partly offset by softness in Australia and Japan. Campari Soda sales fell by 6.2%.
The Tequila portfolio grew sales organically by 7.5%, driven by both Espolón and Cabo Wabo in the US.
Cinzano vermouths saw YTD sales climb by 3.6%, driven by Russia, Germany and Argentina. Sales of Cinzano sparkling wines were flat.
Soft drink Crodino posted a YTD sale decrease of 21.3%, “heavily affected” by the trading and consumer environment in day bars and off-trade channels in Italy, Campari said.
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