Price Increases Boost Campari In First Quarter

Campari Group has posted net sales up 20% to €668 million ($733m) for its fiscal first quarter ended in March, with adjusted EBIT increasing 32% to €159 million ($174m). The results were boosted by price increases as well as shipment phasing and the early Easter holiday. Without those tailwinds, net sales and adjusted EBIT growth would each have been on the order of 13%, Campari said.

In the U.S., Campari’s largest market, sales rose 23% for the quarter, propelled by strong double-digit growth for Espolòn, the core Wild Turkey Bourbon, Russell’s Reserve, and Campari, as well as triple-digit growth for Aperol, which benefited from strong consumer demand and price increases. Espolòn, Aperol, and Campari all earned Impact “Hot Brand” awards for their 2022 performances earlier this year. Those gains were partially offset by a double-digit decline for Grand Marnier, whose shipments fell due to destocking intended to balance inventory levels. Skyy, meanwhile, posted positive shipments as distributors restocked.

“Looking at the remainder of 2023, we remain confident about the positive business momentum across key brands and markets thanks to strong brand equity as well as strength in the on-premise,” said Campari Group CEO Bob Kunze-Concewitz. “Whilst inflation on input costs is showing initial easing effects, margin trends are expected to show pricing effects increasingly entering in the base over the course of the year, alongside sales mix evolution and a normalization in volume growth. In the medium term, we remain confident to continue delivering strong organic topline and mix improvement, leading to organic margin expansion.”—Daniel Marsteller

Tagged : Aperol, Campari, Espolón, Russell's Reserve, Wild Turkey

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