Campari reported a slight dip in full-year profits

Gruppo Campari is set for a “transitional” year as it invests in its global infrastructure but this could pressurise short-term margins, according to an analyst.

The Italian group yesterday (7 March) reported a 1.6% dip in full-year net profits, as sales rose by 5.2%. Analyst Nomura said the medium-term outlook for growth is “attractive” for the group.

In a note today, the analyst added: “We view 2013 as a transitional year with investment behind global infrastructure, for example Scotland and the US, as well as supply chain and commercial efficiency projects. 

“This will put some pressure on margins in the short term; however, longer term, we think it should lead to greater efficiencies and stronger execution.” 

Nomura said it views Campari as an “active consolidator” in the medium term. However, in the short-term, it said it expects the company to focus on integrating the Appleton rum business. 

Nomura added: “We would use share price weakness as an opportunity to buy into what we consider Campari’s attractive medium-term growth story.”