Aperitif Sales Buoy Campari's First-Quarter Core Profit Drop

"Discover the financial tale of Campari's first-quarter as aperitif sales lift spirits amidst a core profit dip. Dive into the numbers behind the scenes."


5/7/20242 min read

Aperitif Sales
Aperitif Sales

In the opening quarter, Italian beverage giant Campari posted a 4.9% decline in operating profit, a figure that was well in line with previous forecasts This increase was due to a particularly dangerous juxtaposition and timing meets in 2023, during which Campari will make its official announcement € each quarter Operating profit of 151.5 million ($163 million) was disclosed, a disclosure that established the company’s transparent transactions clearly emphasizing financial performance The growth reflects the volatility in the beverage industry, where changing consumer behavior and market dynamics can significantly affect financial results

After a quarter of performance, Campari, under its newly appointed CEO Matteo Fantacchiotti, takes on a terrain marked by challenges and opportunities even as we face an operating profit decline of 4.9%, a result of which past forecasts align well, the company’s leadership remains resolutely optimistic about next year’s trajectory

The observed decline in operating profit results from a stronger comparison to the same period in 2023, as purchases ahead of consumer arrival spurred greater sales ahead of anticipated price increases is coming In its official report, Campari revealed an operating profit of 151.5 million euros ($163 million) ).

As a result of this result, Fantacchiotti expressed confidence in the Campari's sustained speed and smooth performance, even in the first quarter during the frequent deceleration. He highlighted the company’s ability to overcome the anticipated challenges posed by previous business models, reaffirming their commitment to continued growth and profitable expansion.

Fantacchiotti’s positive outlook resonated well with investors, as evidenced by the market’s positive response to Campari’s quarterly report. Milan-listed shares were up more than 5% at 09:30 GMT, building on earlier gains after the company announced its financial results. This upward growth in share price reflects investor confidence in Campari’s future prospects under Fantacchiotti’s leadership amid dynamic market conditions and the company’s strategic direction.

Highlights of the third quarter

Amid a challenging operating environment, Campari managed to post a modest 0.2% increase in like-for-like sales, which amounted to €663.5 million in the period driven by increased demand for its signature brands for aperitif Campari and Aperol.

Figures compared to market expectations showed a slightly better performance, with sales slightly above the €654 million conceded by LSEG and adjusted operating profit also above estimates, reaching €150 million.

Sales in the EMEA region were up 2.2%, accounting for 45% of total group sales. However, the Italian market declined 4.9% year-on-year, mainly due to a higher start to last year, which affected Aperol in particular in contrast to the strong growth of 11.8% at Campari within Italy . . . .

Germany emerged as a bright spot, with sales up 12.4% driven by Aperol and Sarti Rosa. Additionally, non-alcoholic aperitif Crodino saw growth alongside Ouzo12.

France also provided positive support, with sales of Aperol, Ricadonna Prosecco, Picon, Trois Rivieres and Crodino increasing by 4.5%. In contrast, the UK saw a decline of 3.6%, mainly due to stronger comparison standards.

Adapting to different consumer preferences and economic conditions, Campari’s ability to navigate a challenging market environment underscores its flexibility and forward-looking approach while the company maintains its growth trajectory amid ongoing market recovery and the prospects for continued profitability under Fantacchiotti remain promising

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