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Gruppo Campari's sales increase 8.1% in first nine months of 2017

DBR Staff Writer Published 08 November 2017

Gruppo Campari's sales grew by 8.1% to €1.27bn for the first nine months of 2017, compared to €1.18bn for the same period in 2016.

The organic sales growth was 6.2%, driven by the strong organic growth of global priorities (7.4%) and regional priorities (13.5%).

The company said the exchange rate effect was slightly positive at 0.3% after a negative impact in the third quarter, driven by the progressive strengthening of the euro against many of the group’s key currencies.

Campari noted that it benefitted from a 1.6% combined increase from the purchase of Grand Marnier in June 2016, the termination of several distribution deals, the divestment of its entire wine business and the sale of its Carolan and Irish Mist brands in July.

Structure costs which include selling, general and administrative costs amounted to €265m and this constitutes 20.8% of the sales. 

Earnings before interest, taxes, depreciation and amortization (EBITDA) was €337.5m and earnings before interest & taxes was €295.5m.

The group pretax profit for the period amounted to €238.2m which is claimed to be an 81.1% increase compared to last year’s profit which stood at €131.5m.

Region-wise, the Americas contributed to 44.5% of the total group sales during the nine months period. Sales in Southern Europe, the Middle East and Africa stood at 29.8% of the total group sales, while North, Central and Eastern Europe contributed to 19.1% of the sales.

Asia Pacific contributed to 6.5% of the total sales of the group.

Gruppo Campari CEO Bob Kunze-Concewitz said: “We delivered very good results in the first nine months of 2017, delivering sustained growth, both in organic and reported terms, across all performance indicators. The sustained gross margin expansion, which benefitted from the continuous improvement of our sales mix by brand and region, helped contain the progression of advertising & promotion (A&P) and selling, general and administrative (SG&A) investments, albeit gradually normalizing during Q3, as expected.

“These effects led to a slight margin dilution in organic operating margin in the first nine months. Looking at the remainder of the year, our outlook remains fairly balanced and unchanged. Macroeconomic environments in some emerging markets remain uncertain whilst the political uncertainty persisting in some regions might continue fuelling the volatility of major currencies against the Euro.”

Image: Gruppo Campari announces third quarter results. Photo: Courtesy of Davide Campari-Milano S.p.A.