• H1 reported group net profits lift 61.7% to EUR108.6m (US$128.6m)
  • Reported net sales up 13.5% to EUR844.7m
  • Organic sales increase 6.8% 
  • Operating profits (EBIT) rise 20% to EUR158.4m
Gruppo Campari saw sales and profits rise in H1 2017

Gruppo Campari saw sales and profits rise in H1 2017

Gruppo Campari has continued first-quarter momentum to post a sales and profits jump for the first half of 2017, thanks to strong performances from global and regional priority brands. 

The company said today that organic sales were up 6.8% in the six months to the end of June. On a reported basis, sales were up 13.5%, following a 15% boost in the first quarter. In comparison, reported net sales in the first half of 2016 were down 2%.  

The group's global priority brands, which include brand Campari and Grand Marnier, saw organic sales rise 9.2% in the six-month period, while its regional priority brands category lifted 11.5%.  Campari also has local priorities and rest-of-portfolio segments, which were flat and up 2.5% respectively.

The firm's bottom line was boosted by the Grand Marnier acquisition, the termination of some distribution agreements and several disposals, including the sale of wineries in Chile and France.

Campari also today confirmed the disposal of the Grand Marnier headquarters in Paris, for EUR35.3m. 

The company continues to benefit from a deal with the Italian government over the size of its patent box tax. The preferential rate will knock EUR88m (US$96m) off Campari's tax bill over the five years between 2015-2019.

"We delivered very good results in the first half of 2017, delivering sustained growth, both in organic and reported terms, across all performance indicators," said CEO Bob Kunze-Concewitz. "The solid organic growth was achieved after an acceleration in the second quarter of both sales and profitability.

"The sustained gross margin expansion, which benefited from the continuous improvement of our sales mix by brand and region and also from a gradual recovery in the sugar business, helped contain the adverse phasing of A&P investments, skewed into the first half of this year. This effect, combined with investments in enhanced distribution capabilities, lead to the expected margin dilution in operating margin in the first half."

Looking into the second half of the year, Kunze-Concewitz said Campari's outlook remains "fairly balanced and unchanged".

"Macroeconomic environments in some emerging markets remain uncertain whilst the political uncertainty persisting in some regions might continue fuelling the volatility of major currencies against the Euro," he added. "Moreover, we believe that the progressive strengthening of the Euro against the US Dollar may have a more adverse impact in the second half of the year." 

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

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