Campari Group posts double-digit H1 sales

Aperol owner Campari Group has reported a reported net sales increase of 25.6% for the six months to 30 June 2022.

The company has posted a ‘strong performance’ for the first half (H1) of 2022, with net sales up 25.6% on a reported basis to €1.2 million (US$1.2m), and organic growth up 19.2% in comparison to the H1 of 2021.

The performance has been credited to healthy brand momentum, particularly within the more premium aperitifs market in Europe, which has benefitted from a fully reopened on-trade and favourable weather conditions.

Bob Kunze-Concewitz, Campari Group chief executive officer, said: “Looking at the remainder of 2022, though volatility and uncertainty remain due to the ongoing pandemic and geopolitical tensions, we remain positive on the underlying momentum of key brand-market combinations.

“Whilst our shipment performance is expected to reflect some temporary supply constraints, we expect to partially mitigate the less favourable sales mix and the accelerating inflationary pressures exacerbated by logistics costs, via planned price increases and operational efficiencies.

“We confirm our guidance of flat organic margin in EBIT-adjusted in 2022 on a full year basis. Regarding the exchange rate effect, we expect a continued positive contribution driven by the US dollar.

“Looking at the medium term, whilst the current challenges persist, we expect to continue benefitting from the positive trends in consumer preferences which favour our brand portfolio due to its exposure to outperforming spirits categories and its pricing power and brand equity.”

Global market performance

Sales in the Americas, which account for 44% of total group sales, were up organically by 12.9%.

Meanwhile, the US, the group’s largest market, grew by 7.1%, thanks to continued growth across core brands and with a slight acceleration in 2022’s second quarter (Q2).

Brands Wild Turkey Bourbon, Espolón, Aperol and Campari all saw double-digit growth in H1.

Grand Marnier declined due to volume constraints linked to glass availability. SKYY also declined.

Canada grew saw organic growth by 4.5%, while rest of the region, including Jamaica, Brazil, Mexico and Argentina, grew by double-digits, accredited to good consumption trends.

Sales in Southern Europe, Middle East and Africa, which account for 30% of total group sales, grew by 28.1%.

This region’s largest market, Italy, saw a boost by 29.6%, as positive trends continued in Q2 thanks to continued ‘revenge conviviality’ in the on-premise, boosted also by very good weather.

The aperitif category registered strong growth driven by this year’s Speciality Spirits Brand Champion, Aperol (+35.4%), Campari (+48.1%) and Crodino (+33.5%).

France saw organic growth of 4.9%, mainly driven by Aperol and Riccadonna.

Other markets in the region registered a positive performance largely due to the on-trade recovery.

Global Travel Retail (GTR) was up +110.7% with recovery of international travels, broadly recovering the shortfall to pre-pandemic level.

Meanwhile, North, Central and Eastern Europe, with 19% of total group sales, grew organically by 24.8%. Germany registered very strong organic growth of 34.8%, with saw continued growth in Q2.

The UK saw organic growth by 18.5% mainly driven by Aperol and Magnum Tonic.

Sales in Asia Pacific, which account for 7% of total group sales, grew organically by 7.8%.

Australia grew 2.1% despite a slightly negative Q2, affected by very poor weather conditions and ocean freight constraints, which impacted in particular the availability of the brand’s Wild Turkey RTD. The positive growth was largely driven by Campari and Wild Turkey Bourbon.