ITALY: Gruppo Campari hails US for propping up FY as "traditional markets" drag

• Full-year net profits dip by 1.6% to EUR156.7m (US$135.3m)
• Net sales in 12 months to end of December rise by 5.2% to EUR1.34bn
• Operating profits slip by 2.7% to EUR287.5m

Gruppo Campari has seen its performance in the US save its numbers in a "transformational year", as Italy, Germany and Brazil struggled in 2012.

The Milan-based firm said earlier today (7 March) that net profits in the 12 months of 2012 slipped by 1.6% on one-off items, hitting EUR156.7m (US$m). While net sales were up by 5.2% at EUR1.34bn, operating profits came in 2.7% down at EUR287.5m.

Stripping out one-off costs, mostly related to Campari's purchase of Lascelles deMercado in December, net profits for the year were flat, inching up by 0.1% to EUR167.7m

While the company did not release figures for its final quarter, the full-year numbers were in line with nine-month results, released in November. Net profits for the nine months to the end of September inched up by 0.8% on a 4.8% lift in net sales. Operating profits in the period were up, however, by 2.6%.

“2012 results were overall satisfactory considering the very difficult market context and the continued steady progress in improving our brand and market mix,” said CEO Bob Kunze-Concewitz. Adverse market conditions in the group’s traditional markets, particularly Italy, Brazil, Germany, affected our aperitifs and still wine portfolio but were compensated by strong growth in newly-established sales platforms in Australia, Argentina and Russia in combination with the continued strong performance of the overall US business.”

Looking to this year, Kunze-Concewitz warned that the company faces “another challenging year due to heightened macroeconomic difficulties in Eurozone markets”, although healthy momentum in the US and improvements in Latin America and Russia should bode well for 2013.

Hailing the “transformational acquisition” of Lascelles deMercado, Kunze-Concewitz concluded: “We are well equipped to tackle the awaiting challenges.”

Campari's share price slipped markedly following the release of the figures, before recovering, down by 1.9% at EUR5.93 at 1314 GMT.

For the company's official statement, click here.

For a closer look at Campari's FY performance, highlighting regions and brands, click here.