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Campari ‘outperforms industry’ with 3.8% growth
Although it posted a solid 3.8% growth in net sales for the first six months of 2024, Campari Group has warned of the impact of Europe’s ‘very poor weather’.
For the first half of 2024 (H1) – 1 January to 30 June – net sales for the group were at €1.523 million (US$1.649m), up from €1.457m (US$1.578m) for the same period last year. Group net profit was at €219.7m (US$238m), up by 1.3%.
The company said the positive results were led by its aperitifs, Campari and Aperol, with particularly strong performances in the Americas and Germany. The rest of Europe, the Middle East and Africa (EMEA) was affected by ‘very poor weather’.
In the Americas, sales were up by 6.8%, where Espolòn Tequila saw double growth. There was double-digit growth in Jamaica as the group made up for rum supply shortages in the first quarter. Brazil was also singled out for strong growth (thanks to aperitifs and local Brazilian brands), while Canada’s performance was flat.
EMEA, which accounts for 49% of the Italian firm’s sales, saw 3.3% growth. However, weather troubles and a high comparison base meant that France (-0.2%), the UK (-7.2%) and its home market of Italy (-5.2%) were all down.
Other markets in the region grew by 13.4%, with growth led by global travel retail, Spain, Greece and Netherlands, while Germany also achieved a 13.4% rise, largely driven by Aperol.
Asia Pacific saw a 10.7% decline, but countries such as China and South Korea grew in the second quarter. Australia struggled with a 11.2% dip, pinned on a challenging macro and competitive environment.
Aperitifs see gains despite bad weather
Brands under the group’s ‘global priorities’ banner (which make up 68% of its sales) saw growth of 5.9%. Campari (9.3%) and Aperol (4.7%) showed that Italian aperitifs are still in the ascendancy, despite poor weather over the European summer, while Espolòn’s performance in the core US market saw it increase by 22.2%.
Grand Marnier also built on a healthy US showing to record a 13.3% increase. The Spirits Business named the orange Cognac liqueur as a brand to watch in 2024.
Skyy Vodka declinined by 11.9%, which was attributed to category trends in the US.
The group’s ‘regional priority’ brands (17% of its total sales) declined by 3.4%. Phasing and tough comparison bases in Magnum Tonic and The Glen Grant were said to offset ‘good momentum’ for Cinzano sparkling wine, Lallier Champagne, Mondoro, Aperol Spritz ready-to-enjoy, Averna and French specialities.
Matteo Fantacchiotti, chief executive officer of Campari Group, labelled the performance as solid and noted the company expects to outperform the industry for the rest of 2024. He also added that the group was excited for Courvoisier, following last year’s purchase of the Cognac brand.
His full statement said: “We recorded a solid performance in the first half of the year with acceleration in the second quarter, yet again outperforming the industry.
“In the remainder of the year, we expect to continue to outperform the industry leveraging our strong brands playing in growing categories in an environment currently showing softer market dynamics and increased price competition in core markets, while the macro remains volatile.
“On a full-year basis, our ability to expand gross margin is expected to be impacted by some temporary headwinds (such as poor weather affecting high-margin aperitifs and agave supply contract renewals) guiding both unfavourable sales mix and shifting some of the related expected COGS [cost of goods sold] benefits into next year.
“However, for the medium term, we remain confident in the continued growth momentum and our ability to deliver profitable growth with consistent operating margin expansion.
“We have palpable excitement in the organisation around Courvoisier. In parallel to the first-time brand consolidation in the past two months of the semester, we started to enhance our capabilities to compete in this category and build this brand unleashing its long-term great potential.”
In 2023, the Aperol maker celebrated a net sales increase of 10.5%, marking its third consecutive year of double-digit growth.
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