By Tunde Osho
Gruppo Campari, the Italy-based spirits firm behind brands such as Campari aperitif, Wild Turkey bourbon and Skyy vodka reported full year 2017 revenue increase of 5.2% to €1.8bn, thanks to the continued growth of its Global Priorities and Regional Priority brands.
Net profit for the period surged 114.3% to €356.4m from €166.3m in the previous year.
Commenting on the results, the Group’s chief executive officer, Bob Kunze-Concewitz said, “We achieved a strong performance across the key indicators in full year 2017, consistently delivering on strategy, thanks to our focus and disciplined execution”.
The group said its sales were driven by a 9.3% boost from the Americas region, its largest market, contributing 43.7% of group sales. The region was led by good performance in the United States which accounts for 25.5% of the region’s sales posting an organic growth of 3.4%, driven by Wild Turkey bourbon, Espolon tequila, the Jamaican rum and Grand Marnier.
However, the performances of these brands were offset by Skyy vodka, which continues to struggle in the US due to competition and with difficulties in the third quarter from hurricane affected states. Elsewhere in the region, sales in Latin America showed strong momentum, with Brazil posting a 4.9% organic growth, followed by Argentina with 30.3% organic growth. Mexico and Peru were both up in the double digits, while Canada recorded a 6% organic growth.
In Southern Europe, Middle East and Africa, which contributes 29.5% of group sales, revenue rose marginally by 0.7%, driven by a positive exchange rate impact and a negative perimeter effect of -5.1%. The company saw a 2% growth in the Italian market, driven by the continued positive trend of Aperol, Campari and Crodino. The region’s other markets – France, Spain, South Africa and Nigeria all showed satisfactory results. Nigeria’s growth was driven by Skyy and American Honey. Global Travel Retail climbed 8.5%, with good performances of Aperol, Skyy, Bulldog Gin and others.
Sales in North, Central and Eastern Europe increased 5%, driven by a favourable exchange rate and a 2.9% perimeter effect. In Asia pacific, sales grew marginally at 0.8%, driven by a positive exchange rate and a perimeter effect.
Looking forward to the rest of 2018, the group said it remained confident in achieving a positive performance across the key indicators into 2018, driven by the continued out performance of the high-margin global and regional priorities in the key developed markets.