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How did Campari Group perform in 2018? - results data

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  • Full-year sales come in 5.3% up at EUR1.71bn (US$1.94bn)
  • Americas climbs 3.9% with US increasing sales by 4.4%
  • Southern Europe, Middle East & Africa rises 4.9%, North, Central & Eastern Europe up 6.2%
  • Asia Pacific, Campari's smallest region, jumps 12.9%
  • 2019 outlook "fairly balanced in terms of risks and opportunities"

Campari Group is looking forward to a continued ride of the premiumisation wave in 2019, with last year's sales coming in 5% up on the year prior.

Earlier today, the company posted sales increases in all four reporting regions, with its biggest individual market, the US, rising by 4.4%. Campari credited a favourable sales mix by both brand and market for its healthy 2018.

Campari Group 2018 - Sales versus 2017 - Reported

2017 (restated)2018
Fourth Quarter522.2511.1
Third Quarter414.9422.4
Second Quarter450.1442.2
First Quarter366.2336

Source: Company results

In reported terms, sales for the year dipped by 2.4% due to the strength of the Euro and the divestment of "non-core businesses" such as Carolans Irish Cream and Irish Mist, both of which moved to Heaven Hill Brands in mid-2017.

The group's Aperol brand continued its healthy showing last year, leaping 28% in sales terms, while Skyy Vodka remained on its downward trajectory, falling 8%. Campari claimed, however, that "the gap between [Skyy's] sales and more positive consumption data [is] progressively reducing", noting that competition in the brand's flagship US market is still "strong". Elsewhere in the portfolio, Wild Turkey and its American Honey extension were up a combined 7%, with the company's Jamaican rums posting an 8.3% sales increase.

Campari Group 2018 - Sales by Region - Reported

AmericasSouthern Europe, Middle East & AfricaNorth, Central & Eastern EuropeAsia PacificTotal
2017 (restated)783.6501.2347.2121.31753.4
2018744.7479.8358.9128.31711.7

Source: Company results

On a regional basis, organic sales in the Americas climbed 3.9% (down 5% in reported terms), with spirits brands Espolòn, Aperol and Campari all growing double-digits in the US. Like many other drinks companies, Campari flagged the poor macroeconomic conditions in Argentina, with Peru also earning special mention thanks to its near-42% jump in sales.

While both the SEME&A and NC&EE regions rose by mid-single-digits, Asia Pacific stood out with a near-13% sales jump last year, as the likes of Wild Turkey, EspolònGlenGrant, Skyy, Campari and Frangelico pushing Australia's sales up by 10.5%.

CEO Bob Kunze-Concewitz

"We achieved a solid performance across all key indicators in terms of organic growth and margin expansion in full-year 2018, consistently delivering on long term strategy. In particular, over the past four years, Campari Group has achieved +680bps of gross margin expansion on sales on a cumulative basis, as the combined result of very healthy organic expansion of +390bps, driven by favourable sales mix, and accretive M&A initiatives, including strategic divestments, and FX contributing the remainder. This remarkable achievement has enabled strengthened investments in brand building and commercial initiatives for long-term, sustainable growth.

"Moreover, it simultaneously allowed the Group to expand EBIT margin ahead of sales growth by +300bps over the last four years on a cumulative basis, of which +130bps in organic terms.

"Looking ahead into 2019, our outlook remains fairly balanced in terms of risks and opportunities as uncertainty around macroeconomic instability and currency volatility, particularly in emerging markets, remain. We expect the current underlying business performance to keep its momentum, while we continue facing headwinds from agave purchase price hike. Nevertheless, we remain confident in achieving a positive performance across the key underlying business indicators in 2019, driven by the continued outperformance of the high-margin Global & Regional priority brands in key developed markets."

To read Campari Group's official full-year results announcement, click here.

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