ITALY: Gruppo Campari Reports Solid FY Growth

Gruppo Campari has recorded solid sales and profit growth for its 2016 fiscal year, despite the negative impact of foreign currency fluctuations.

For the year, sales were up 4.2% to €1.73bn (+4.7% organic basis), while adjusted operating profit rose by 6% to €352.5m (+3.6% organic), and adjusted net profit was up 7% to €198.6m.

Sales in the Americas rose by 3.5% (+2.9% organic), driven by a 2.1% increase in the US, which reported improved demand for the Wild Turkey and Italian brands such as Aperol and Campari.

Sales in Southern Europe, Middle East and Africa were up 1.4% (+2.6% organic), despite a modest increase in Italy (+0.3%). Meanwhile, sales in North, Central and Eastern Europe were up 9.6% (+11.9% organic), driven by a 6% increase in Germany and a 27.7% jump in Russia. And finally, the Asia Pacific region registered a 6.4% rise in sales (+6% organic), helped by a 7.2% increase in Australia.

CEO Bob Kunze-Concewitz noted: “We continued to deliver sound growth across all key performance indicators in 2016, in reported as well as organic terms. We achieved these results thanks to the continued outperformance of the high margin global and regional priority brands in key high margin developed markets which helped compensate challenges in emerging markets as well as the negative impact of the low-margin non-core sugar business in Jamaica.”

Looking ahead to 2017, the group said its “outlook remains fairly balanced” and it expects to deliver “a positive full year top and bottom line performance, thanks to the consistent growth of our premium portfolio, positively leveraging our strengthened distribution capabilities and brand building investments.”