Positive Margin Momentum Fuelling Investments For Future Growth at Gruppo Campari

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Positive Margin Momentum Fuelling Investments For Future Growth at Gruppo Campari

Positive Margin Momentum Fuelling Investments For Future Growth at Gruppo Campari
March 01
10:46 2018

Gruppo Campari has reported a 5.2% increase in net sales to €1.816 billion for 2017 with solid organic growth of 6.3%, helped by continued improvement in sales mix driven by the key global and regional priority brands in core markets, leading to sustained gross margin organic expansion of 120 bps.

The group’s global priority brands include Aperol, SKYY, Campari, Wild Turkey, Grand Marnier and the Jamaican rums. The regional priority brands include Espolòn, GlenGrant, Forty Creek, Bulldog, Averna, Braulio, Cynar, Frangelico and Cinzano.

Gruppo Campari’s adjusted EBIT at €380.5 million reflected organic growth of 8.7%, ahead of sales growth, more than offsetting the re-investments into brand building and distribution enhancement initiatives. Group adjusted net profit was up by 17.5% to €233.4 million.

Bob Kunze-Concewitz, chief executive of Gruppo Campari.

Bob Kunze-Concewitz, chief executive of Gruppo Campari, comments: “We achieved a strong performance across the key indicators in full year 2017, consistently delivering on strategy thanks to our focus and disciplined execution. In particular, over the past three years we delivered positive margin momentum, expanding our gross margin by nearly +600 bps on sales, on a cumulative basis, the combined result of the healthy organic expansion of +270 bps driven by sales mix and accretive M&A initiatives. This achievement enabled us to fuel accelerated investments in brand building and distribution enhancing initiatives for future growth and, at the same time, expand our EBIT margin ahead of sales growth by +190 bps in the last three years on a cumulative basis, of which +80 bps in organic terms.”

In line with the ongoing focus on its core business, Gruppo Campari has launched a series of projects aimed at improving the efficiency of operations in some key markets, including the relocation of the US head office from San Francisco to New York City, and the optimization of manufacturing operations in Brazil.

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