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Campari ‘confident’ after first half revenues jump over 14%

27 July 2023 By Jessica Mason

Campari has recorded a 14.2% increase in like-for-like revenues in the first half of this year with double-digit growth across all regions.

The results, particularly boosted by sales of aperitifs, Tequila and premium Bourbon, were markedly led by growth from Asia Pacific which saw a lift of 26.2% and saw a boost in particular across South Korea, Japan, China and India.

Sales in the Americas grew by 11.7%, but slipped back to 3.3% in the second quarter reflecting what the group cited as “expected shipment phasing reversal” as well as the destocking in Grand Marnier.

The positive performance in the first half was mainly driven by the strong growth of Aperol, Espolòn, Appleton Estate, as well as Russell’s Reserve, according to Campari. Meanwhile, Jamaica registered double-digit growth driven by Magnum Tonic and the rum brands Appleton Estate and Wray & Nephew.

“The rest of the region was overall positive, with growth in Brazil and Mexico offsetting weakness in other markets,” the group revealed.

In Southern Europe, the Middle East and Africa, sales grew by 16.6%. The region’s largest market, Italy, was up 13.4% with a very positive second quarter (up 8.1%) driven by Aperol, Campari, Campari Soda and Crodino.

France delivered strong growth of 21%, driven by core Aperol and Campari as well as Riccadonna sparkling wine and Lallier.

Showing that world travel is continuing apace since the pandemic, Campari’s sales across the global travel retail sector (GTR) were up 49.8% showing good momentum in brands including Aperol, Campari, SKYY and Frangelico.

Campari additionally noted that North, Central and Eastern Europe grew by 14.5%. Within this, Germany registered a strong growth of 16.4% driven largely by Aperol, Aperol Spritz ready-to-enjoy, Campari and its latest innovation brand the new aperitif Sarti Rosa.

Meanwhile, the UK grew by 20.9% mainly driven by the continued positive trends in Aperol, Magnum Tonic, Campari and Wray & Nephew rum.

Speaking about the results, Campari CEO Bob Kunze-Concewitz said: “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.”

Kunze-Concewitz explained: “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 (advertising and promotional expenses) and continued sustained investments to strengthen the group’s commercial capabilities.”

Kunze-Concewitz added that “in the medium term” the group remains “confident of continuing to deliver strong organic topline and margin expansion leveraging mix improvement as well as input cost inflation normalisation”.

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