Campari archives a first quarter traditionally characterized by low seasonality with a gross profit down by 25,4% to 39,4 million, a result penalized by the destocking implemented in Italy by distributors following the introduction, last year, of restrictive legislative provisions in terms of payment (so-called Article 62).
This was announced in a note recalling that sales - which at a consolidated level recorded an increase of 12,9% (-9% the organic change) entirely due to the expansion of the perimeter with Lascelles deMercado&Co (LdM) - decreased by over a quarter (-26,2%) compared to the same period of 2012.
"Sales performance in Italy without the technical effect described above (destocking ed) would have been negative by a few percentage points", specifies the note, quantifying the impact of the "destocking" at around 25 million. Thus, 2013 promises to be a potentially uphill year.
“We expect the evolution of consumption trends and the potential persistence of unfavorable weather conditions in Italy and other European markets to be the main challenges to our ability to recover from the first quarter drop in sales over the remainder of the year ,” Bob Kunze-Concewitz, chief executive officer, said in the release.
The title widened its decline after the publication of the quarterly report, falling below 6 euros to the lows of the session. Bad news on the sales front continues to arrive from Germany (organic change -19,9%) and, in the period, also from Australia (organic change -11,4%). On the other hand, the turnover generated in the Americas remains robust (45% of the total), with a positive organic change of 10,8%.
The effect of the destocking in Italy had negative effects on margins, already put under pressure by the first consolidation of LdM because the first three months, for the latter, were marked above all by non-strategic activities with low margins.
