Drinks giant Gruppo Campari has announced ‘solid’ results for 2016, with an increase in net sales of 4.2% to €1.7 billion
Organic growth was 4.7%. Its adjusted EBITDA for the year was €405.3 million, an increase of 6.6% (+4.4% organic growth).
Group net profit was €166.3 million, a drop of 5.2%. However, the adjusted group profit, prior to operating and financial adjustments, was €198.6 million (+7%).
Its €684 million acquisition of French cognac-maker Grand Marnier Group in 2016 garnered €81.5 million in net sales and €16.1 million in adjusted EBIT, Campari said.
The group’s advertising and promotion spend increased by 7.8% to €308.6 million in 2016.
CEO Bob Kunze-Concewitz commented on the 2016 results, “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.”
The outlook for 2017 is “fairly balanced”, despite volatile political situations in developed markets and difficult emerging economics which could sway consumption trends and currencies.
He said the group remained “confident to continue delivering 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”.
US Becomes Largest Market
By region, the Americas posted an increase of 3.5%, or 2.9% organically. The region comprised 42.1% of group sales in 2016.
The US became Gruppo Campari’s largest market, totalling 24.8% of total group sales and boosted by products such as Wild Turkey (+1.4%) and Italian drinks, particularly Aperol (+42.8%) and Campari liqueur.
Sales in Brazil saw a total organic decline of 12.7%, influenced by ‘difficult trading conditions’.
Revenue in Southern Europe, the Middle East and Africa (30.9% of total group sales) saw an overall growth of 1.4%.
There was ‘exceptional’ growth in France (+54.1%) and good growth in Spain (driven mainly by Aperol).
Sales in the rest of Europe increased by 9.6% overall, with Germany and Russia in particular showing strong growth.
Headquartered in Milan, Gruppo Campari has an international portfolio of more than 50 premium and super-premium spirits.