ITALY: Gruppo Campari YTD shows signs of recovery with Q3 boost
- Nine-month net profits fall 14.9% to EUR149.5m (US$200.8m)
- YTD net sales up 13% to EUR1.05bn
- Operating profits drop 8.4% to EUR193.9m
- Plans to set up distribution company in Spain
Campari is expecting its fourth quarter to help it further recover its slowing bottom line
Gruppo Campari has slowed the fall in profits in its year-to-date, helped by a strong Q3, and expects its final quarter performance to “stabilise” the business.
Net profits in the nine months to the end of September fell by 14.9% to EUR149.5m (US$200.8m), the Milan-headquartered group said today (14 November). Sales in the period were up 13% to EUR1.05bn, while operating profits slid by 8.4% to EUR193.9m.
In its first-half the firm had reported a 26.1% drop in net profits.
In Q3, net profits rose by 8.1%, as sales climbed by 13% to 353.9m. Operating profits in the three months came in at EUR73.4m, up 8.2%.
Its domestic market of Italy was affected by “weak” consumption, but the group said the improvement was led by the “expected realignment of shipments”. The results were also helped by the group’s Lascelles de Mercado acquisition, but dragged down by the effect of “unfavourable” foreign currency exchange.
CEO Bob Kunze-Concewitz also pointed to “macroeconomic challenges in key markets, volatile sales mix evolution”, meaning the “overall business context remains tough".
But he added: "We expect our performance to stabilise in the fourth and key quarter of the year."
The company also announced it has gained the distribution rights for Bulldog Gin and has a call option to acquire the brand in 2020.
The group said it is planning to establish a “full in-market distribution company” in Spain, in a bid to become a “key player” in the market.
To read the company’s full statement, click here
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