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Campari’s pre-tax profits slip 21.8%
Gruppo Campari’s results for the first nine months of 2014 were “in line” with expectations with the group recording a pre-tax profit of €116.9 million, down 21.8% on the same period last year.
Total sales stood at €1.06 billion, representing a slight growth of 0.8%, with the group’s net financial debt currently at €1.03bn, up from €852.8m as of 31 December 2013.
Bob Kunze-Concewitz, CEO of Campari said the results were “in line with expectations”.
Despite the adverse weather conditions in Europe in the third quarter, Kunze-Concewitz said organic sales performance was “positive and driven, in particular, by the expected recovery in the US.”
He said: “Looking at the year end, we believe that despite the persistent volatility in some of the Group’s markets and the unfavourable macroeconomic scenario, the good momentum behind the key combinations of brands and markets will continue, driving the Group’s outperformance of local trends in core markets. In particular, we expect that the good momentum of the aperitifs portfolio across all markets will continue, positively impacting the business in the last quarter.”
The group’s results build on what was a tough start to the financial year with aperitif sales helping to boost its sales. Sales of Gruppo Campari’s Italian apéritif brand Aperol jumped by 800% in the last year at UK supermarket Waitrose.
Moving forward, the group said it would be heightening its focus on high margin own brands moving forward and look to further consolidate and strengthen its international distribution capabilities.
Kunze-Concewitz added: “Looking forward, the positive evolution of the business is expected to continue, benefitting also from a more benign input costs environment, the positive reversal in 2015 of the temporary overlapping production costs affecting 2014, and the paybacks of the announced restructuring projects which are expected to increase focus on the owned core business as well as the new investments in strengthened distribution capabilities.”
The group acquired the Italian bitter, liqueur and grappa producer Fratelli Averna earlier this year for €103.75 million – a company whose portfolio included the Averna, Braulio, Limoncetta and Frattina premium brands.