Italian drinks group Campari has posted a 19.6% rise in like-for-like sales in the first quarter, thanks to the price increases put in place last year as well as some temporary effects such as an early Easter calendar.
The maker of Aperol and Campari bitters said in a statement that January-to-March total revenues came in at €667.9 million ($732.8 million) compared with €534.8 million a year earlier, while adjusted operating profit margins rose to 23.9% from 21.4%.
The group confirmed its guidance for 2023 of a flat adjusted earnings before interest and taxes (EBIT) margin of 21.1%, given the current volatile macro-environment.
Milan-listed shares in the drinks group rose as much as 3.2%, extending gains after results were published.
Southern Europe, Middle East and Africa accounted for 29% of total group sales and registered growth of 23.5% during the quarter.
The region’s largest market, Italy, saw sales up 21.6% despite a comparison base of 70.2% increase in the first quarter of 2022. It performance was boosted by the full-year effect of last year’s price increases, shipment phasing and the early Easter calendar.
North, Central and Eastern Europe contributed to 16% of total group sales during the quarter, and reported organic growth of 16.0%.
The Americas, which accounted for 47% of sales, saw organic sales growth of 19.5% in this period. In the US, sales grew by 23.0% year-on-year, driven by double-digit growth of Espolòn, Wild Turkey bourbon, Russell’s Reserve, and Campari, as well as the triple-digit growth in Aperol.
Sales in the Asia Pacific, which comprised 8% of total group sales, increased organically by 14.5%, while Australia reported 5.1% growth, driven by Aperol and Wild Turkey bourbon.
Bob Kunze-Concewitz, chief executive officer of Campari said, "Looking at the remainder of 2023, we remain confident about the positive business momentum across key brands and markets thanks to strong brand equity as well as strength in the on-premise. Concomitantly, in the current volatile macro-environment we confirm the guidance of flat organic EBIT-adj. margin in full year 2023.
"Whilst inflation on input costs is showing initial easing effects, margin trends are expected to show pricing effects increasingly entering in the base over the course of the year, alongside sales mix evolution and a normalisation in volume growth. In addition, in the remainder of the year the forex trend is expected to reverse mainly due to weakening US dollar."