Davide Campari-Milano SpA’s board of directors have approved the consolidated results for the first half year ended June 30, 2016.
The company says the drop in net profit is due to negative adjustments, mainly due to the Grand Marnier transaction costs.
Gruppo Campari CEO Bob Kunze-Concewitz (pictured), said: “In the first half of 2016 we delivered a sustained organic growth across all operating performance indicators, reflecting the consistent execution of the group’s growth strategy.
“Notwithstanding the expected reversal of the first quarter positive one-off’s, good organic growth rates for net sales and profitability indicators were confirmed in the second quarter. Moreover, in the first half of 2016 the sales mix by brand and market continued to improve, driving a positive operating margin expansion, in line with the group's growth strategy.
“Key drivers were the continued outperformance of global and regional priorities as well as a positive performance particularly in the high-margin developed markets (such as North America and Western Europe). It should be noted that the very satisfactory first half results were achieved notwithstanding the negative impact of the non-core low-margin sugar business in Jamaica.
“Looking at the remainder the year, the outlook shared at the beginning of the year remains broadly unchanged. In particular, with reference to the macroeconomic environment, we expect that the volatility in some emerging markets and the uncertainty on the movements of group’s key foreign currencies will continue.
“At the same time, we remain confident to deliver a positive and profitable performance. With regards to the brand portfolio, we expect a continued growth of high-margin global priorities, particularly aperitifs, American whiskeys and Jamaican rums, also thanks to a further strengthening of brand building investments in the second half of the year to fuel long term growth. We expect innovation to continue to drive the expansion of premium offerings.
“With regards to markets, we remain confident to achieve a positive performance in the group’s core strategic regions, thanks to the continued contribution of the group’s strengthened route-to-market. Finally, with respect to the external growth, in the second half of 2016 we will benefit from the positive effects of integration of the Grand Marnier business,” said Kunze-Concewitz.