Italian drinks group Campari posted a 14.2% rise in like-for-like revenues in the first half of this year and confirmed its margin target for the year but its shares slid on some disappointment over the figures.
Sales growth for the maker of Aperol and Campari bitters slowed down in the second quarter compared to the first three months this year, which had benefitted from some temporary effects.
Sales in the last three months were affected by 'very poor weather across core Southern and Central Europe and temporary delistings from selected European retailers due to commercial negotiations in connection with price increases', the company said.
First-Half Sales
First-half net sales at the spirits maker came in at €1.46 billion, while analysts expected €1.47 billion, according to a company provided consensus cited by Italian broker Equita.
Jefferies analysts said the shares needed a "beat-and-raise to perform" after a strong showing so far this year.
Campari's adjusted operating profit rose 15.1% organically to €360 million in the first six months. It confirmed its guidance of a flat organic adjusted EBIT margin for 2023.
'Positive Business Momentum'
"Looking at the remainder of 2023, we remain confident of the positive business momentum across key brand-market combinations, reflecting business seasonality and expected normalisation in volume growth, thanks to strong brand equity and continued strength in the on-premise," commented Bob Kunze-Concewitz, chief executive.
"Regarding margins, we expect the trends to reflect the sales mix evolution, different comparison bases for pricing effects as well as the initial easing effects on input costs inflation, alongside the phasing of A&P and continued sustained investments to strengthen the Group’s commercial capabilities.
On a full year basis, Campari confirmed its guidance of a 'flat organic EBIT-adj. margin in the current volatile macro-environment', it said.
