Gruppo Camapri released its Q1 results today

Gruppo Camapri released its Q1 results today

Earlier today (13 May), Gruppo Campari announced its results for the first three months of 2013. Here is a look at the results in the company's regions and from its main brands.

Regions

Sales in the Americas, a region that accounted for 45.1% of group sales, leapt by 66.7% on a reported basis and by 10.8% in organic terms. The inclusion of sales from Lascelles deMercado, the purchase of which closed late last year, drove the reported sales leap. The US - 19.6% of total group sales - delivered an organic lift in sales of 7.6%. Brazil reported a sales leap of 22.4%, as the "other Americas" saw sales rise by 14% in organic terms.

Italy was the bad apple in the quarter. The country, which accounted for 23.8% of sales - saw organic sales plunge by 26.3% following the introduction of legislation regarding client payment terms in October last year. Subsequent de-stocking was experienced in the country throughout the first quarter. Strippping out the de-stocking effect, which is estimated to have been EUR25m, sales would still have been down, by around low- to mid-single digits.

The rest of Europe (19.2% of total sales) reported an 8.8% fall in organic sales, due to "very poor" weather conditions in the region. A new distribution agreement in Germany proved a positive in Europe, but falls in France, Spain and Greece were the main handicaps.

The rest of the world, including Global Travel Retail, contributed 11.9% of total sales. Although reported sales jumped by 24.5%, organic sales slipped by 6.9% thanks, in part, to "heightened competitive pressure" on Bourbon and RTDs in Australia.

Brands

Spirits made up 71.1% of total sales in the quarter, down from 77.8% a year earlier. Brand Campari saw sales fall by 12.4%, due to the Italian de-stocking. Aperol posted a 15.3% drop in sales due to continued weakness in Germany. Skyy vodka inched up 1.9%, thanks to a 3.5% lift in the US. Wild Turkey was overall flat, while Glen Grant fell by 11.8%.

Wines accounted for 13.1% of total sales, up from 11.6% year-on-year. Cinzano vermouths improved their sales by 7.8%, although Cinzano sparkling wines fell by 10.5% in organic sales by value.

Soft drinks sales accounted for 5.3% of sales, down from 9.6% in Q1 2012. The Crodino brand was hit particularly hard by the Italian destocking, with sales plunging by 45%.

Finally, "other" drinks made up 10.5% of total sales, up from 0.9%.

Campari's net financial debt at the end of March totalled EUR914.1m, compared to EUR869.7m at the end of 2012.

For a full round-up of just-drinks' coverage of Campari's Q1 performance, click here.