Campari runs on the stock exchange after the publication of the nine-month accounts. Mid-morning Campari shares they achieve one of the best performances of the Ftse Mib, gaining 1,53% to 9,142 euros after reaching a maximum of 9,334 euros.
Campari: the results for the first nine months of 2022
Campari closed i first nine months 2022 with a net profit of 452,7 million euro, up by 32,7% compared to the same period of the previous year, and with a pre-tax profit of 483,3 million, an increase of 40,8%. The net sales amounted to 2,005 billion, up by 27,3% in value and with an organic change of +19% (+18,6% in the third quarter).
Moving forward with the data, the perimeter effect was negative by -0,2%, while the exchange effect positive for +8,5% (equal to 133,5 million) is mainly due to the strength of the US dollar. The gross margin rose 25,9% to 1,21 billion and was 60,3% of sales, theadjusted ebitda recorded growth of 33,4% to 557,8 million and theadjusted ebit by 36,8% to 492,2 million.
Lnet financial debt increased by 130,2 million compared to 31 December 2021, reaching 961,2 million. According to the company, the increase is mainly due to the buyback of treasury shares and the dividend.
Double-digit organic growth in the third quarter of 2022 thanks to aperitifs
The company reported that “Strong organic growth continued in the third quarter double-digit, thanks to the very robust dynamics of the brands and the price effect. In particular, the performance was driven by aperitifs in their seasonal peak, also benefiting from favorable weather conditions, as well as brown spirits”.
Indeed, in the months of July-September, the adjusted EBIT recorded organic growth of 10,6%, with an organic margin dilution of -160 basis points due to higher material cost inflation, particularly logistics costs, and a less favorable geographic sales mix, only partially mitigated by first positive effects of the successfully implemented price increases.
Campari continues to grow in the Americas, +21,5% in Italy
From a territorial point of view, in the area of Americas Representing 45% of the company's revenues, Campari reported organic sales up 18,7%. The main market, the United States, grew by 14,6%. L'Southern Europe, Middle East and Africa area (28% of the total) grew by 23,3%, while Italy – the main market of the area – recorded an increase of 21,5% with positive trends continuing in the third quarter (7,9% or 3-year CAGR equal to +14% compared to 2019). The results are driven by aperitifs with Aperol (+25,5%), Campari (+34,1%), Campari Soda (+9,2%) and Crodino (+20,6%).
Finally, the area Northern, Central and Eastern Europe (20% of the total) recorded organic growth of +18,3%, with +22,5% in Germany and +13,1% in the United Kingdom. Area sales Asia-Pacific (7% of the total) grew organically by +5,6%.
Aperol queen of aperitifs
Looking at the various brands, Aperol grew +31,4%, thanks to the main markets such as Italy (+25,5%), Germany (+35,4%), United States (+56,7%), Spain (+100,8%), France (+29,4%) and United Kingdom (+21,6%). Campari posted strong growth of 29,9% with continued positive momentum in the third quarter (+26%). The performance was also driven by Italy (+34,1%), the brand's main market.
Estimates for 2022
Looking ahead to the rest of 2022, Campari remains “confident on the positive momentum of the business with the outperformance of our brands key compared to the reference markets thanks to the strength of the brands. From a sales orders perspective, we expect a normalization of the growth trend in the recent quarter reflecting the seasonal sales mix as well as supply chain challenges in select areas,” he said. the CEO of the group, Bob Kunze-Concewitz, commenting on the results for the first nine months of the year and confirming “our stable Adjusted EBIT margin guidance on organic net sales in 2022 on a year-over-year basis, despite the dilution of margins in the third quarter due to the expected increase in cost of sales inflation and less favorable sales mix”.
However, explained the CEO, “lto volatility and uncertainty persist due to the ongoing pandemic, geopolitical tensions and high inflationary pressure, the latter mitigating by price increases". That said, overall “the solid performance in our sales continued during the key summer season thanks to very positive brand dynamics, the continued strength of the on-premise channel and favorable weather conditions, as well as the initial impact of price increases, which were successfully implemented during the nine months”. Regarding the foreign exchange effect, “we expect the positive contribution driven by the US dollar to continue. Looking at the medium term, we remain confident in the strength of our brands, which allow us to take appropriate pricing action to navigate through current challenges,” concluded Kunze-Concewitz.
