Campari Posts Strong H112 Results
News: Italian alcoholic drinks producer Gruppo Campari's sales increased 5% year-on-year (y-o-y) to EUR618mn (US$765.3mn) in H112. The rise has been attributed to strong results in Asia Pacific and North America offsetting challenging environment in Italy, Germany and South America. The firm's net profit rose 3.5% y-o-y to US$77.9mn in H112. Of Campari's key brands, Aperol grew 1.7% y-o-y, the Wild Turkey franchise increased 22.1% y-o-y and Skyy's sales value rose 11% y-o-y in H112. However, the firm namesake brand decreased 0.9% y-o-y, while Cinzano vermouth declined 4.2% y-o-y in H112.
BMI View: In recent years the firm has begun to focus on growth in emerging markets, particularly in Eastern Europe and South America. More recently, it has been expanding its portfolio of spirits in an effort to compete with global giants such as Diageo and Pernod Ricard. In April 2009, it acquired the Wild Turkey bourbon brand from Pernod Ricard, the largest acquisition in the firm's history. In autumn 2010, Campari announced the purchase of three liqueur brands from British sprits company William Grant & Sons. Campari paid EUR129mn (US$159.8mn) for the Irish cream liqueur Carolons, Italian hazelnut liqueur Frangelico and the honey and whiskey liqueur Irish Mist. The firm said the deal will strengthen its volumes in the key US market and also improve its exposure in Australia, Russia, Canada, Spain and the UK.