• H1 net profits tumble by 26.1% to EUR57.6m (US$76.4m)
  • Net sales in six months to end of June rise by 13% to EUR698.6m
  • Operating profits fall by 16.2% to EUR120.5m
  • Q2 "improving" as Q1 proves main drag
Campari saw its profits struggle again in the half-year

Campari saw its profits struggle again in the half-year

Gruppo Campari has seen its Q1 woes weigh on its half-year numbers, with profits falling by double digits as sales held firm.

The company said earlier today (6 August) that net profits for the six months to the end of June fell by 26.1% to EUR57.6m (US$76.4m), despite a 13% lift in net sales for the period, which came in at EUR698.6m. Operating profits also fell markedly, by 16.2% to EUR120.5m.

The half-year numbers mirror Campari's performance in the first quarter, when profits fell by 25.4% on a 12.9% lift in net sales. The company saw its Italian customers embark on a programme of destocking in Q1. Last October, a law was introduced in the country that placed restrictions on payment time limits from customers to food and drink producers.

Despite this, the company cited "improving overall trends" in the second quarter, but did not provide specific numbers.

In organic terms, the company's half-year sales fell by 3.3%. Campari had the "positive contribution" of its recently-purchased Lascelles deMercado & Co operations to thank for the rise in reported sales.

"In the first half of 2013 results were in line with expectations, thanks to the  return to positive organic performance in the second quarter driven by the sustained growth in North America,  Russia and  Argentina as well as the  stabilisation or improvement of trends in other developed markets (particularly Italy and Germany)," said CEO Bob Kunze-Concewitz.

"Whilst the group's overall trading environment should remain volatile ... we expect the business to continue improving gradually over the second half of 2013."

Campari's share price rose this morning following the release of the half-year numbers: by midday CEST, they were up by 3.5% at EUR6.14.

To read the company's official results statement, click here.

For a deeper look at Campari's performance in the first half of 2013, click here.