Italian spirits group Campari reported a 9.6% increase in fourth quarter like-for-like sales, thanks to strong pricing and despite supply constraints.
The maker of Aperol and Campari bitters said net sales reached €2.7 billion in 2022 as a whole, up organically 16.4% compared with the previous year.
"In a challenging 2022, we continued to make solid progress in pursuing our long-term growth strategy focusing on sustainable brand building as well as portfolio enhancement via attractive acquisitions," Campari CEO Bob Kunze-Concewitz said in a statement.
"The overall macro environment for inflation remains challenging despite some signs of easing; nevertheless, we remain confident to preserve the current operating margin on sales at the organic level," he added.
Future Demand
Campari said it was confident in the strength of future demand and it is planning robust medium-term supply chain investments to double overall production capacity in key aperitifs, bourbon and tequila categories.
The group, which has been boosted in recent years by the popularity of the orange Aperol spritz cocktail, said it generated 46% of its sales in the Americas with the United States its largest market.
Adjusted operating profit in the last quarter was up 7.6% on a like-for-like basis, with input cost inflation almost fully offset by positive pricing initiatives. It was up 19% on the same basis over the year.
Shares in Campari slipped after the results were published but they quickly cut their losses to trade down 0.7% at 10:40 GMT.
A Milan-based trader said that results were broadly in line with analyst consensus.
Jefferies analysts said the flattish margins expected for 2023 were a negative factor but already expected and pointed out the continued growth momentum as a positive element.
Campari is proposing a full year dividend of €0.06 per share, unchanged compared with the previous year.
News by Reuters, edited by by ESM – your source for the latest drinks news. Click subscribe to sign up to ESM: European Supermarket Magazine.