ITALY: Gruppo Campari's top-line to accelerate over FY - analyst

By | 6 August 2012

Camparis H2 is expected to be better than H1, according to Nomura

Campari's H2 is expected to be better than H1, according to Nomura

Gruppo Campari can expect to see an acceleration in its top line this year and will remain on the acquistion trail, an analyst has forecast.

Last week, the Milan-headquartered drinks group reported a moderate rise in H1 profits, helped by its sales in the Americas. However, European sales, excluding Italy, saw a 2.1% sales drop. 

But analysts Nomura said the toughest half of the year is now behind the firm. "We expect an acceleration in the top line and see better reporting through the year," Nomura said in a note released late last week.

Italy accounts for around 30% of Campari's sales and the macro market is likely to remain "volatile", the analysts warned, but added: "The shape of the company’s spirits portfolio in Italy offers some protection, given exposure to the faster-growing aperitif market." 

Nomura also said that Campari's balance sheet offers M&A opportunities. "We believe Campari will remain an active consolidator in the sector," the note said.

"Given its (Campari's) record of buying undermanaged assets and not overpaying, we see further value creation from potential acquisitions."

In 2009, Campari acquired the Wild Turkey Bourbon brand from Pernod Ricard. The purchase was followed a year later with a move for liqueur brands Carolans, Frangelico and Irish Mist from William Grant & Sons.

Expert analysis

Davide Campari – Milano S.p.A.: Consumer Packaged Goods Company Profile, SWOT & Financial Report

The profile contains a company overview, key employees, business description, competitive benchmarking, SWOT analysis, key facts, information on products and services, details of locations and subsidiaries, plus information on key news events affecting the company.

Sectors: Soft drinks, Spirits

Companies: Campari, Pernod, Ricard, William Grant

View next/previous articles

Currently reading -

ITALY: Gruppo Campari's top-line to accelerate over FY - analyst

There are currently no comments on this article

Be the first to comment on this article

Related articles

Preview of the Year - 2013 - Part V: Wine

The final part of Euromonitor's preview of the year ahead for the global drinks industry sees senior alcoholic drinks analysts Spiros Malandrakis and Jeremy Cunnington turn the spotlight on the wine category.

just The Preview - Beam Inc Q4 & FY

Beam Inc will report its fourth quarter and full-year results on Friday (1 February). Here, just-drinks takes a look at the highs and lows for the company in the three months to the end of December and performances in recent quarters.

JAMAICA: Diageo's Red Stripe, Cabcorp agree JV deal

Diageo-owned Red Stripe and PepsiCo bottler Cabcorp have signed a deal to form a new joint-venture sales and distribution company in Jamaica.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page