Analysis

Focus - Gruppo Campari’s Q1 Performance by Region, Brand

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Earlier today (12 May), Gruppo Campari announced its first quarter results, including a 73% hike in pre-tax profits and a 13% sales increase. Here, we take a look at the figures for the quarter by region and brand:

Gruppo Campari has had a good start to the year

Gruppo Campari has had a good start to the year

  • The Americas (accounting for 43.9% of total sales) – Sales +19.4%, +4.8% organically

Sales in the US rose 3.2% organically, accounting for nearly 21% of group revenues, thanks to double-digit growth for Wild Turkey Bourbon and the company’s Jamaican rums, including Appleton Estate and Wray & Nephew. Meanwhile, Skyy vodka stabilised on a recovery for the core brand, offset by weakness in the flavoured Infusions segment, and Italian specialities – especially Aperol – registered a "very positive" trend.

Organic sales in Jamaica were also up, rising 7.3% thanks to double-digit growth for the rums and brighter macroeconomic conditions. The weak environment in Brazil sent sales down 4.6%, but strong growth from Campari and Cinzano boosted revenues by 7.3% in Argentina.

Canada, however, was down 4.9%, an expected result thanks to a distribution change.

  • Southern Europe, Middle East & Africa (32.6% of total sales) - Sales +12.9%, +6% organically

Aperitifs (Aperol and single serves) drove 2% organic sales growth in Campari’s home market of Italy, despite tough comparatives with last year. Meanwhile, the company highlighted a "very positive" performance in Spain across its entire portfolio, plus solid growth in Global Travel Retail, both of which contributed to a 25.4% surge in organic revenues for the rest of the region.

  • North, Central & Eastern Europe (16.3% of total sales) - Sales -0.1%, -1.5% organically

The favourable timing of Easter and good performances from Cinzano and Ouzo 12 helped sales in Germany to rise 6% organically, Campari said, before warning: "Market conditions remain difficult, with continued competitive pressure affecting Aperol’s performance."

A combustible mix of political tensions, macroeconomic volatility and credit control procedures sent sales in Russia down 21.5% organically, with a decline in sparkling wine revenues slightly offset by growth for Cinzano, Old Smuggler, Campari and Aperol.

  • Asia Pacific (7.1% of total sales) - Sales +15.9%, +7.2% organically

Recoveries for Wild Turkey RTDs and Frangelico, coupled with good performances for Campari and Aperol, sent sales up 2.1% organically in Australia.

Other markets recorded a 20.5% surge in revenues, mainly driven by Coruba in New Zealand and Campari and Glen Grant in China, which more than offset a weak performance in Japan, which was impacted by distribution changes.


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