ITALY: Gruppo Campari sees Americas drive H1 numbers
- H1 net profits rise by 3.5% to EUR77.9m (US$95.2m)
- Net sales in six months to end of June increases by 5% to EUR618.3m
- Operating proits follow suit, up by 5% to EUR143.8m
- European travails offset by strong showing in Americas
Gruppo Campari released its H1 figures earlier today
Gruppo Campari has maintained its steady start to 2012 with single-digit rises across sales and profits in the first half of the year.
Net profits in the six months to the end of June climbed by 3.5% to EUR77.9m (US$95.2m), the Italian company said today (3 August). Net sales rose by 5% to EUR618.3m and operating profits also increased by 5%, to EUR143.8m, over the same period.
Sales in the Americas, a region that accounts for about a third of Campari's revenues, jumped by 9.6% (7.2% organically), driven by a 13.2% organic increase in the US. All key brands in the US, which accounts for about 22% of Campari's total revenue, registered forward growth, Campari said, with the Wild Turkey and Skyy franchises performing well.
Europe, excluding Italy, posted a 2.1% sales decline in H1 compared compared to the year earlier, with CEO Bob Kunze-Concewitz blaming the implementation of a new sales platform in Russia and a commercial dispute in Germany.
A weakening consumer confidence in Italy saw Italy post a slim 1.4% sales increase, said Kunze-Concewitz, who remained optimistic.
“Whilst we do not expect any improvements in the tough overall trading environment in the most challenging markets, we expect to maintain a good balance between potential upsides and downsides,” he said. “Positive momentum in North America and Asia Pacific with a return to normal trading conditions in Russia and slow but gradual resolution of the trade dispute in Germany should help compensate for a very challenging environment in Italy and South America.”
Sales in Brazil dropped by 14.2% organically in H1 results. Campari said the fall was driven by destocking and a slowdown in beverage consumption, especially in its local brands.
Of Camapri's core brands, Aperol posted organic growth of 1.7% while Skyy sales grew by 11%. Meanwhile, Wild Turkey jumped by 22%.
Tequilas registered a strong overall sales growth of 41.4%, driven by Espolón and Cabo Wabo in the US.
In this, the third part of Euromonitor International's preview of the year ahead, senior alcoholic drinks analysts Jeremy Cunnington and Spiros Malandrakis turn their attention to the global spirits c...
While there has been huge focus in the spirits sector on emerging markets in recent years, a new report from Euromonitor International suggests prioritising development in these up-and-coming regions ...
- The end is nigh for Global Travel Retail - Comment
- Five ways small brands can beat big players
- Interview, Bulldog Gin founder Anshuman Vohra
- Pernod Ricard's Q1 results - Preview
- Pernod Ricard Q1 2017 results by region, brand
- Diageo most at risk to Thai alcohol ban - analyst
- Constellation sells Canadian wine unit for US$761m
- Jobs at new India hub won't affect staff - Diageo
- Stumbling UK Pound prompts Conviviality price hike
- Pernod Ricard cheers US move to ease Cuban limits
- Global gin insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends
- Global Wine Market 2016-2020