• YTD net profits down 16% to EUR189.4m (US$235.9m)
  • Nine-month net sales down 1% to EUR1.06bn
  • Operating profits (EBIT) down 17% to EUR160.3m
  • Q3 net profits down 41% to EUR49.3m
  • Net sales in Q3 up 6% to EUR374.3m
  • Operating profits down 47% in third quarter to EUR39.1m
  • Q3 one-off costs total EUR30.2m
Campari saw Q3 sales rise

Campari saw Q3 sales rise

Gruppo Campari has reported a drop in year-to-date profits as one-off Q3 acquisition costs hit its bottom line.

Net profits in the nine months to the end of September fell 16% to EUR189.4m (US$235.9m), the Milan-headquartered group said today. Net sales dipped 1% to EUR1.06bn in the same period while operating profits (EBIT) slumped 17% to EUR160.3m.

The one-off costs in year-to-date totalled EUR33.4m, but were EUR30.4m in Q3, leaving third-quarter net profits down 41% despite a 6% sales rise. The one-offs mainly came from restructuring costs in connection with Gruppo Averna, which Campari acquired in June, the company said.

Campari also bought Canadian whiskey producer Forty Creek this year, and in May an analyst suggested the company ought to "focus on integrating (the buys) before looking at further M&A".

Without the one-off costs, Campari's net profits fell by 3% in the year-to-date and by 5% in Q3. The company blamed bad weather in Europe and a tough comparison in Italy.

Sales performance in Q3 was an improvement on earlier results, rising by 5.8% to EUR374.3m. In the first three months of this year, net sales fell by 8.4%, while sales in the half-year were flat.

CEO Bob Kunze-Concewitz said: “Looking at the year end, we believe that despite the persistent volatility in some of the group’s markets and the unfavourable macroeconomic scenario, the good momentum behind the key combinations of brands and markets will continue, driving the Group’s outperformance of local trends in core markets.”

Trading in Campari's shares fell immediately after the release of the numbers. As of 1117, they were down 2.4%.

Campari today also announced it is to take Canadian and UK distribution of its brands in-house from next year.

To read the company's full announcement, click here.

For a look at Campari's results by region and brand, click here.

To read Kunze-Concewitz's views on the US vodka market in a call with analysts, click here.