Campari Group Profit Soars in Quarter as Sales Rise 34.4%

Campari Group reports net profit before tax of 107 million EUR (about $112.59 million), a 65.1% increase, as sales soared 34.4% to 397.4 million EUR.

Sales in the Americas (46% of total Group sales) were up organically +14.9%. The Group’s largest market, the US,
grew 6.6% despite a tough comparison base, the company said, citing resilient home consumption and renewed strength in the on-premise. The performance was driven particularly by Espolòn, Wild Turkey, Aperol, Campari and Cabo Wabo the company said Canada grew 9.4% and Jamaica registered strong growth (+20.1%). The rest of the region, including Brazil, Mexico and Argentina, grew by double digits as markets recover from the pandemic in a small quarter.

Turning to brands, Campari said its Global Priorities (58% of total Group sales) registered an organic growth of +30.6%. Aperol grew +71.9%, thanks to 
strong growth in core Italy (+101.4%), Germany (+79.2%), the US (+51.2%), France (+79.5%) as well as all other European markets. The brand is benefitting from renewed activations and recruitment thanks to the reopening of the on-premise and sustained at-home consumption, boosted by a favourable comparison base (+0.1% Q1 2021) and phasing.

Campari delivered strong growth of +56.6% thanks to all major markets including Italy (+118.7%), the US, Jamaica, Germany, Brazil and France. The positive performance was favored also by phasing ahead of a robust price repositioning in Europe. Wild Turkey registered solid growth, up +14.0%, mainly driven by the core US market and Australia as well as Asian markets (Japan, South Korea).   Skyy declined -11.5% largely due to the comparison base in the core US in connection with the brand relaunch whilst the international markets continue to grow. Grand Marnier grew overall (+8.9%)
thanks to the core US market.

The company’s Jamaican rum portfolio grew 6.5% overall against a tough comparison base, driven
by the favorable category trends in premium rum.

Regional Priorities (24% of total Group sales) recorded a positive performance (+31.7%).  Espolòn grew by double digits (+29.2%) despite a tough comparison base, thanks to the core U.S. as well as international markets, albeit off a small base.   Glen Grant grew double digits driven by premiumization, in particular within South Korea, China and GTR. Crodino grew by strong double digits driven by strong growth in core Italy against an easy comparison base as well as seeding markets. The other brands such as the Italian specialities, the sparkling wines and vermouths (Cinzano, Mondoro
and Riccadonna), Magnum Tonic and Aperol Spritz ready-to-enjoy all delivered positive results.

Local Priorities (9% of total Group sales) grew +19.6% with positive growth across the entire portfolio, in particular Campari Soda, Wild Turkey ready-to-drink and X-Rated.

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