just On Call - Gruppo Campari CEO urges Italy caution
Italy posted a strong H1 performance
The head of Gruppo Campari has voiced caution about the company's domestic market as factors including bad weather look to “normalise” a strong start to the year.
In H1 results released yesterday, Campari posted an 8.2% sales lift in Italy, a return to form in the country that contributed to a stronger overall performance. However, in a call with analysts, CEO Bob Kunze-Concewitz warned that the weather in northern Italy has been “dreadful” in the past few weeks, with heavy rainfall causing widespread flooding.
He also said Italy's second half will rub up against stronger comparisons, while the effect of new product launches in the market will subside.
Kunze-Concewitz said: “There is something fundamentally positive happening to us in Italy. Having said that, we expect the trend to normalise in the second half. It's because we want to be cautious.”
Meanwhile, Kunze-Concewitz said he expects Russia, which also enjoyed a strong H1, to end the year with double-digit sales growth. However, he said more muted consumer confidence, especially around vermouth, will mean the country's sales growth will be lower than last FY, when it registered organic growth of 37%.
Gruppo Campari has named Ugo Fiorenzo as its new managing director of Campari America. ...
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