ITALY: Wild Turkey drives H1 sales, profits rise for Gruppo Campari
- Net profits in H1 up by 15%
- Sales follow suit, climbing by almost 17%
- Buys out remaining 20% of Cabo Wabo
Campari is toasting a "very positive" first-half of 2010
Gruppo Campari has posted a healthy lift in first-half sales and profits thanks, in part, to its purchase of the Wild Turkey Bourbon brand.
The Italy-based wine and spirits group today (4 August) reported a 15.2% leap in net profits for the six months to the end of June to EUR69.3m (US$91.5m), with sales for the period rising by 16.7% to EUR515.7m. In organic terms, sales were up by 8.7%. The purchase of Wild Turkey, from Pernod Ricard in April last year, contributed around 6.1% of the sales rise.
Campari's spirits brands upped their share of the company's total sales in the half-year, and delivered a 24.2% sales increase, while wine sales slipped by 1.3%. Soft drinks sales, which are concentrated in Campari's domestic market, were down by 5.1%.
Geographically, the performance of the Americas stood out for Campari, with sales soaring by 46.1% thanks primarily to Wild Turkey.
“Our performance in the first half of 2010 was very positive with significant growth across all key indicators,” saidd Campari's CEO, Bob Kunze-Concewitz. “Our continued good consumption momentum across key brand and market combinations should help cushion the impact of tougher comps in terms of cost of goods and a weaker sales mix driven by seasonality.
“Whilst volatility might impact trading across coming quarters, we remain reasonably optimistic about our full year prospects.”
In the results announcement, Campari also said that it has closed the purchase of the remaining 20% of Cabo Wabo. The transaction, which cost $11m, was completed on 30 July. Campari acquired an 80% stake in Cabo Wabo from musician Sammy Hagar in May 2007.
For the full announcement, click here.
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