ITALY. Italian drinks group Campari has reported sales of €957.5 million for the financial year ended 31 December 2007, a rise of +2.7% (+4.9% at constant exchange rates) over the same period in 2006.
The overall change in sales resulted from an organic growth of +7.1%, a negative exchange rate effect of -2.2% and a negative perimeter effect of -2.2%.
The latter was due to the announced termination of the Lipton Ice Tea distribution contract on the Italian market, in part offset by Glen Grant and Old Smuggler (whose sales started on 15 March 2006) and the newly acquired X-Rated brands (whose sales started on 1 August 2007).
Trading profit increased by +5.3% to €270.6 million (+7.8% at constant exchange rates), or 28.3% of sales. Organic growth reached +7.1% and external growth f+0.7%, while exchange rate effects negatively contributed -2.5%.
EBITDA before one-offs increased by +5.9% (+8.6% at constant exchange rates) to €223.0 million, or 23.3% of sales. EBITDA rose by +4.9% (+7.6% at constant exchange rates) to €220.1 million, or 23.0% of sales.
EBIT before one-offs rose +6.3% (+9.2% at constant exchange rates) to €203.4 million, or 21.2% of sales. EBIT increased by +5.3% (+8.2% at constant exchange rates) to €200.6 million, or 20.9% of sales.
The Group’s profit before tax and minority interests was €183.3 million, an increase of +4.4% (+7.2% at constant exchange rates).
Group’s net profit was €125.2 million, an increase of +6.9% (+9.1%).
On 2 January 2008, the Group finalised the acquisition of an 80% stake in Cabo Wabo Tequila, an ultra-premium brand in the US spirits market. The total value, paid in cash, was US$80.8 million.
SALES 2007 – BY SEGMENT
Spirits (71.3% of total sales)
The spirits segment recorded growth of +4.6%, the combined result of organic growth of +6.3%, a negative exchange rate effect of -3.0% and external growth of +1.3% (Glen Grant, Old Smuggler and X-Rated).
The Campari brand posted growth of +3.5% at constant exchange rates, driven by strong showings in Brazil and Italy.
SKYY vodka sales rose by +11.1% at constant exchange rates, due to an encouraging performance on both the US and international markets.
With regard to the other main brands, the spirits segment benefited from strong performances from Aperol (+21.8% at constant exchange rates), Cynar (+11.9%), the Brazilian brands (+9.4%), and Ouzo 12 (+2.7%).
CampariSoda’s sales decreased by -1.3%. Glen Grant and Old Smuggler posted growth of +22.2% at constant perimeter and exchange rates.
Wines (15.8% of total sales)
The wines segment registered growth of +12.2%, due to the combination of strong organic growth of +12.5% and a negative exchange rate effect of 0.3%.
The segment’s strong performance was driven by Cinzano vermouth (+18.7%) and by Cinzano sparkling wines (+12.7%).
The wines segment also benefited from positive performances from Sella & Mosca (+6.8% at) as well as Mondoro, Riccadonna and Cantina Serafino.
SALES 2007 – BY REGION
In 2007 sales on the Italian market (41.1% of total Group sales) recorded an organic growth of +5.2%. The overall change was negative by -2.0%, due to a negative perimeter effect (-7.2%), attributable to Lipton Ice Tea.
Sales in Europe (20.6% of consolidated sales) grew by +12.8%, boosted by organic sales growth of +10.6%, thanks to positive performances from markets such as Germany and Russia and external growth of +2.6%.
In the Americas (33.7% of total sales), the US market registered organic growth of +4.9%, a negative exchange rate effect of -8.7% and external growth of +1.7%. In Brazil, sales registered organic growth of +11.8% and a positive exchange rate effect of +2.8%.
Sales in the rest of the world, which accounted for 4.6% of total sales, grew by +6.3% overall, driven by organic growth of +8.2%.
In a statement, Gruppo Campari Chief Executive Officer Bob Kunze-Concewitz said: “2007 was a highly successful year, with accelerating organic growth, improved marginality and excellent cash flow generation. Looking forward, we expect our businesses to maintain its positive evolution.”
About Gruppo Campari
Gruppo Campari is a major player in the global beverage sector, trading in over 190 nations around the world with a leading position in the Italian and Brazilian markets and a strong presence in the US, Germany and Switzerland.
The Group has an extensive portfolio that spans three business segments: spirits, wines and soft drinks. In the spirits segment are internationally renowned brands such as Campari, SKYY Vodka and Cynar together with leading local brands, such as
Aperol, Cabo Wabo, CampariSoda, Glen Grant, Ouzo 12, Zedda Piras, X-Rated and the Brazilian brands Dreher, Old Eight, and Drury’s. In the wine segment together with Cinzano, are Liebfraumilch, Mondoro, Riccadonna, Sella & Mosca and Teruzzi & Puthod. In the soft drinks segment are Crodino, Lemonsoda and its respective line extension dominating the Italian market.
The Group has over 1,500 employees. The shares of the parent company, Davide Campari-Milano, are listed on the Italian Stock Exchange.
For investor enquiries contact Chiara Garavini, tel: +39 02 6225 330, or Alex Balestra, tel: +39 02 6225 364, e-mail: investor.relations@campari.com. Visit www.camparigroup.com.
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