Gruppo

Davide Campari-Milano (Gruppo Campari), an Italy-based global branded beverage industry, has reported that its pre-tax profit for the first nine months of 2013 dropped 15% to €149.5m in comparison with the year-ago period.

During the period, the company’s sales rose 13% to €1.05bn, as against €931.6m in first nine months of 2012.

The organic sales growth was down by 0.4%, driven by increase in organic sales growth of 5.2% in the third quarter, which was due to increased performance in key markets and improving trends in Italy.

Among different regions, Americas accounted for 42.4% of total group sales, Italy for 25.4%, while rest of Europe and rest of the world accounted for 22.2% and 10% of total group sales, respectively.

Among different brands, spirits accounted for 74.7% of group sales, wines for 12.3%, and soft drinks accounted for 6.5% of total sales.

Gross margin for the first nine months of 2013 was €567.3m, up by 3.7% or 53.9% of sales, compared to 2012 figures.

Gruppo Campari CEO Bob Kunze-Concewitz said with a worsening foreign exchange outlook, continued macroeconomic challenges in some key markets and volatile sales mix evolution, the overall business context remains tough.

"However, having successfully completed the announced restructurings, plants start-up’s and the integration of significant new business in the first nine months of 2013, we expect our performance to stabilize in the fourth and key quarter of the year," Kunze-Concewitz added.

"Looking forward, on the back of this transitionary year we will start reaping the benefits accruing from the new set up and expect our long term growth to be driven by sustained brand building across key brand-market combinations and the strengthening resonance of the brand portfolio in new geographies.

"Moreover, we are pleased to announce our partnership with the Bulldog Gin Company. With Bulldog Gin we will become a key player in the attractive super premium gin category in key markets, further premiumise Campari’s brand portfolio and increase on-premise focus, particularly in the US."

Image: Gruppo Campari headquarters at Sesto San Giovanni, Italy. Photo courtesy of Davide Campari-Milano S.p.A.