• H1 net profits rise by 3.5% to EUR77.9m (US$95.2m)
  • Net sales in six months to end of June increases by 5% to EUR618.3m
  • Operating proits follow suit, up by 5% to EUR143.8m
  • European travails offset by strong showing in Americas
Gruppo Campari released its H1 figures earlier today

Gruppo Campari released its H1 figures earlier today

Gruppo Campari has maintained its steady start to 2012 with single-digit rises across sales and profits in the first half of the year.

Net profits in the six months to the end of June climbed by 3.5% to EUR77.9m (US$95.2m), the Italian company said today (3 August). Net sales rose by 5% to EUR618.3m and operating profits also increased by 5%, to EUR143.8m, over the same period.

Sales in the Americas, a region that accounts for about a third of Campari's revenues, jumped by 9.6% (7.2% organically), driven by a 13.2% organic increase in the US. All key brands in the US, which accounts for about 22% of Campari's total revenue, registered forward growth, Campari said, with the Wild Turkey and Skyy franchises performing well.

Europe, excluding Italy, posted a 2.1% sales decline in H1 compared compared to the year earlier, with CEO Bob Kunze-Concewitz blaming the implementation of a new sales platform in Russia and a commercial dispute in Germany.

A weakening consumer confidence in Italy saw Italy post a slim 1.4% sales increase, said Kunze-Concewitz, who remained optimistic.

“Whilst we do not expect any improvements in the tough overall trading environment in the most challenging markets, we expect to maintain a good balance between potential upsides and downsides,” he said. “Positive momentum in North America and Asia Pacific with a return to normal trading conditions in Russia and slow but gradual resolution of the trade dispute in Germany should help compensate for a very challenging environment in Italy and South America.”

Sales in Brazil dropped by 14.2% organically in H1 results. Campari said the fall was driven by destocking and a slowdown in beverage consumption, especially in its local brands.

Of Camapri's core brands, Aperol posted organic growth of 1.7% while Skyy sales grew by 11%. Meanwhile, Wild Turkey jumped by 22%.

Tequilas registered a strong overall sales growth of 41.4%, driven by Espolón and Cabo Wabo in the US.

To read the company's official statement, click hereCampari's Q1 results are covered here.

To read just-drinks' coverage of Gruppo Campari's H1 conference call, click here.