Campari reports steady 2011

Italian drinks company Davide Campari-Milano has reported a group net profit for 2011 of €159.2m, up from €156.2m in 2010.

Sales in ‘the Americas’ - the largest region, accounting for 33.5% of total group sales - were +5.4%. This was bolstered by Brazil (driven by Campari, Dreher, Skyy vodka and Cynar), Argentina (driven by Cinzano, Campari and Old Smuggler), Canada (driven by Skyy vodka and Wild Turkey) and Mexico (driven by Skyy ready-to-drink).

However, the US market (19.8% of total group sales) registered an overall change of -2.8%. The market registered an organic increase of +3.3%, due to Wild Turkey and Skyy Infusions but there was a 'negative perimeter effect' of -1.9% due to the termination of Tullamore Dew and Cutty Sark agencies and a negative exchange rate effect of -4.2%.

The Italian market (31.6% of total group sales) recorded a total growth of +1.3%, driven by the “strong momentum” of Aperol and Campari, which included the launch of Aperol Spritz single serve home edition.

Sales in the rest of Europe (25.7% of total group sales) increased by +18.6%.

Sales in the rest of the world including GTR, which accounted for 9.2% of total group sales, grew by +39.2% overall, driven by the newly established Australian subsidiary.

Aperol is now the group’s largest brand by sales value, of which more than half is achieved outside of Italy. Campari Soda and the company's still and sparkling wine portfolios didn't fair so well, all declining -2.1% each.

Bob Kunze-Concewitz, chief executive officer, said: “Full year 2011 results confirm the solid underlying trends of Gruppo Campari. The significant investments in marketing and in route-to-market, coupled with product innovation and acquisitions, further strengthened our business, broadening our development opportunities in terms of product and market combinations.

“Whilst the traditionally small first quarter will be soft in 2012 due to a very tough comparison base and some isolated events, which are expected to be recovered throughout the remainder of the year, our expectations for the full year 2012 remain cautiously optimistic. Notably, we expect our strong business fundamentals to continue supporting our positive overall momentum and help overcome the challenges created by the weak macroeconomic environment, strained credit situation and business transitions. Moreover, we remain confident of the medium to long term potential of our key growth engines.”

You can read the full results report here.