Italy’s Campari Group ended the first half of 2016 with a 1.8% drop in sales, to €743.9 million.
However, there was organic growth of 5% as a result of a positive performance, particularly in the high-margin developed markets, such as North America and Western Europe.
Group net profit was €67.2 million (-13.8%), although adjusted net profit was €77.3 million (+9.4%).
Net financial debt grew to €1.34 billion, after a payment of €682.9 million for the Grand Marnier acquisition.
In the core business, Campari was up by triple digits and the Jamaican rums by double digits.
Regionally, the Americas (40% of total group sales) posted an overall change of -8.0% (organic growth of +3.2%), due to the termination of distribution agreements and the sale of non-core sugar business in Jamaica.
In the US (23.5% of the total group and 58.7% regional), sales were up 8.6% organically across the brand portfolio.
Sales in Southern Europe, the Middle East and Africa (34.8% of the total group) grew 0.6% (+3.6% organic), despite the termination of distribution agreements and the sale of a non‐core private-label business in Italy.
The Italian market (27.0% of the total group and 77.5% regional) achieved 0.8% organic growth, driven by Campari (+12.4%) and Aperol (+6.6%).
Sales in North, Central and Eastern Europe (18.7% of the total group) increased by 9.1% overall (+12.9% organically), with sales in Germany (10.2% of the total group, 54.2% regional) growing organically by 9.5%, driven by Aperol, Campari, SKYY Vodka, Frangelico and Ouzo 12.
According to CEO Bob Kunze-Concewitz, “The outlook remains broadly unchanged [due to the] volatility in some emerging markets and the uncertainty on the movements of the group’s key foreign currencies.”
However, he is confident regarding the “delivery of a positive and profitable performance”.
The expectation is of a continued growth of high-margin global priorities, particularly aperitifs, American whiskies and Jamaican rums.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.
