Gruppo Campari released its Q1 2016 results today

Gruppo Campari released its Q1 2016 results today

Earlier today, Gruppo Campari announced its first-quarter results, including flat sales and a dip in pre-tax profits. Here, we take a look at the figures for the three months to the end of March by region and by brand. 

  • The Americas: 41.2% of group sales in Q1, reported sales -6.3%, organic sales +6.9%

In the US, organic sales were up 14.8% across the portfolio. Key drivers were Wild Turkey's core Bourbon, the Italian specialities, driven by Aperol and Jamaican rums, particularly Appleton Estate.

Regional brands also posted strong organic growth, Campari said. Espolon was up 80.8% while GlenGrant, Cynar and Averna also posted growth. Skyy vodka was up 2.6%. 

Organic sales in Jamaica dropped 27.8%, entirely attributable to the non-core sugar business, which offset gains for brand Campari. 

Organic sales in Brazil fell 27.2%, reflecting tough market conditions, the company said. However, Aperol, Wild Turkey and Appleton gave "very positive" performances. 

Sales in Argentia registered 87.6% organic growth, benefitting from an improved environment. High margin premium brands performed very well - the company said brand Campari and Cynar doubled, while Skyy vodka and Aperol "more than quintupled". 

Sales in Canada registered organic growth of 14.5%, driven by Forty Creek, Carolans and Frangelico, as well as Campari and Aperol. Skyy vodka, however, was negative. 

  • Southern Europe, Middle East & Africa: 33.9% of group sales in Q1, reported sales +9%, organic sales +4.8%

The Italian market registered 2.4% organic sales growth, thanks to brand Campari (+44%) and Aperol (+10.5%). An early Easter also helped drive consumption in the quarter. 

The region's other countries saw overall growth of 14%, driven by France, for Aperol, Appleton Estate, GlenGrant and Riccadonna - as well as South Africa for Skyy vodka, Wild Turkey, GlenGrant and Cinzano vermouth. This was partially offset by weakness in Nigeria and the "temporary" slowdown of Global Travel Retail. 

  • North, Central and Eastern Europe: 17.9% of group sales in Q1, reported sales +9.8%, organic sales +13.3%

Organic sales in Germany were up 10.6%, driven by  Aperol, Skyy vodka, Frangelico and Ouzo 12. The positive performance of Campari contributed to overall growth.

Russia showed a positive organic performance of 27.7%, driven by Mondoro and Cinzano (sparkling wines and vermouth) thanks to stable volumes and reduced discounts versus a low comparison base, the company said. However, Campari warned that market conditions continue to deteriorate due to the "persisting macroeconomic instability and increasing credit risk".

The region's other markets registered an overall positive organic growth of 14.6%, mainly driven by the UK (Aperol, Campari, Frangelico and Wild Turkey), as well as the aperitifs and the whiskies in Central and Eastern Europe.

  • Asia Pacific: 7.1% of group sales in Q1, reported sales -1.1%, organic sales +5.8%

Organic performance in Australia was up 21.5%, led by Wild Turkey, Wild Turkey ready-to-drink, Aperol, Skyy ready-to-drink and Espolòn

The other markets registered an overall organic dip of 27.3% mainly due to Japan, Campari said. The positive performance of GlenGrant was more than offset by a decline in Wild Turkey and Skyy vodka in the country, according to the company.

China was also negative due to a general economic slowdown, the company said.