Un cost reduction plan which could lead to a 10% cut in the workforce. In numbers, this would be 500 workers at a global level of which 100 in Italy, including about 20 executives out of nearly 5.000 employees. This is the project that, according to rumors, the new CEO of Campari, Simon Hunt, arrived just over a month ago to try to revive the fortunes of the struggling company, which like the entire market is suffering from the slowdown in sales after the post-Covid boom, but which has especially recorded notable weakness in the United States, which represents about a third of the group's revenues.
The reaction of the Campari stock
The prospect of a restructuring seems to please investors, with the stock gaining ground today on Piazza Affari 2,94% to 5,534 euros per share, achieving one of the best performances of the Ftse Mib (+0,33%). A breath of fresh air after tough months, in which Campari has lost more than 46% of its value.
Campari confirms restructuring but not numbers
“We are gradually implementing a program of corporate initiatives to accelerate growth and profitability through focus, simplification and cost containment.
This includes some difficult decisions, such as an organizational restructuring,” said Campari Ita. “These measures, although difficult, aim to ensure a return to financial stability and sustainability overall Campari Group in the medium and long term. Where it is necessary to implement such decisions, we will act with the utmost respect and consideration, ensuring the necessary support to the employees affected, as is our custom. This extensive program is currently underway and includes the implementation of a new operating model; therefore, at the moment it is difficult to provide a number overall globally,” says the company, which will present its 4 accounts on March 2024.
Campari further added that 'the programme is expected to generate a total benefit of 200 basis points in terms of cost incidence of structure on net sales over the next three years by 2027, with a corresponding increase in operating margin.
The group commented that "'the global external environment has significantly evolved in recent months, leading the sector to a series of reflections. As already announced in the third quarter 2024 financial results, changes in our net sales performance and investments in existing infrastructure have impacted our profitability, requiring a more efficient allocation of resources".
