FDBusiness.com

Gruppo Campari Delivers Solid Growth

 Breaking News
  • BBF Set For Further Growth After Securing New £40 Million Funding BBF, the UK’s leading manufacturer of own label, licensed and branded ambient cakes and desserts, has secured a new £40 million financing facility with Wells Fargo Capital Finance (WFCF) to support future growth plans. BBF serves all the UK’s most recognisable food retailers such as Tesco, Sainsburys, Asda, M&S, Aldi and Lidl. With manufacturing facilities in [...]...
  • Clean-label, Plant-Based Yogurt Alternative Yofix Probiotics, the winner of PepsiCo’s European Nutrition Greenhouse Programme 2018, has launched its first dairy-free, soy-free yogurt alternative line with three fruit flavors. The products are based on a unique, clean-label formula made from just a few natural ingredients. It is traditionally fermented and contains live probiotic cultures plus the prebiotic fibers that feed [...]...
  • Evolution of the Jameson Bottle and Label Set to Continue Jameson Irish Whiskey, which is produced by Irish Distillers in Midleton Distillery, has unveiled an evolution of its iconic bottle and label design 50 years after it was first introduced. The refreshed look highlights the brand’s provenance, triple-distillation production method and premium quality cues to whiskey drinkers as it looks to strengthen its position as [...]...
  • Sweets and Snacks New Product Development Thrives on Adventure and Bite-size Trends With one in four global consumers increasing their consumption of confectionery over the past year (Innova Market Insights Consumer Survey, 2018) because “there is more variety & novelty available,” the food industry is responding. New data from Innova Market Insights finds a 15 percent average annual growth in global confectionery launches with a “discovery” claim [...]...
  • 80,000 Tonnes of Skimmed Milk Powder Sold in Biggest Tender A total of 80,424.05 tonnes of the skimmed milk powder bought into public stock by the European Commission since 2015 were sold in the latest tender sale, bringing the remaining stock to around 22,000 tonnes out of the original 380,000 tonnes, stockpiled since the crisis that hit the dairy sector in 2015. In effect, almost [...]...

Gruppo Campari Delivers Solid Growth

Gruppo Campari Delivers Solid Growth
August 08
10:10 2017

Gruppo Campari has reported a 13.5% increase in first half sales to €844.7 million, reflecting strong organic sales growth of 6.8%, favourable currency exchange rates and a 5% impact stemming from the acquisition of Grand Marnier (consolidated on July 1 2016), the termination of some distribution agreements and the sale of non-core businesses, such as Carolans and Irish Mist.

The Grand Marnier acquisition contributed €58.9 million in net sales, €12.4 million in adjusted EBIT and € 14.2 million in adjusted EBITDA in the first half. Adjusted group EBIT increased by +11.6% to €163.4 million and by 2.9% organically, while adjusted group EBITDA rose by +11.5% to €191.7 million (3.4% organic growth).

The acquisition of Bulldog London Dry Gin, which closed in February 2017, did not produce any significant benefit as the brand was already integrated into the group’s distribution network.

Advertising and Promotion spending (A&P) during the first half increased organically by 16.1% to €162.7 million – equivalent to 19.3% of sales, due to the adverse phasing of advertising investments, skewed into the first half of this year.

Bob Kunze-Concewitz, chief executive of Gruppo Campari.

In July 2017 Gruppo Campari signed an agreement for the sale of the Grand Marnier headquarters building in Paris for €35.3 million. The transaction is in line with the Italian drinks group’s strategy to streamline its non-core businesses and follows the disposals of the wineries in Chile and France, which also became part of Gruppo Campari via the Grand Marnier acquisition.

Bob Kunze-Concewitz, chief executive of Gruppo Campari, comments: “We delivered very good results in the first half of 2017, delivering sustained growth, both in organic and reported terms, across all performance indicators. The solid organic growth was achieved after an acceleration in the second quarter of both sales and profitability. The sustained gross margin expansion, which benefitted from the continuous improvement of our sales mix by brand and region and also from a gradual recovery in the sugar business, helped contain the adverse phasing of A&P investments, skewed into the first half of this year. This effect, combined with investments in enhanced distribution capabilities, lead to the expected margin dilution in operating margin in the first half.”

He continues: “Looking into the second half of the year, our outlook remains fairly balanced and unchanged. Macroeconomic environments in some emerging markets remain uncertain whilst the political uncertainty persisting in some regions might continue fuelling the volatility of major currencies against the Euro. Moreover, we believe that the progressive strengthening of the Euro against the US Dollar may have a more adverse impact in the second half of the year. Nevertheless, we remain confident in achieving a positive performance across key indicators for the year, driven by the outperformance of the high-margin global and regional priorities. We expect the gross margin to continue benefitting from the favourable sales mix despite being penalized by inflationary effects on material costs in emerging markets as well as rising prices in some raw materials such as agave.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements