Campari's Sales Rise Despite Tough Environment for Drink Makers

By Andrea Figueras

Aperol maker Davide Campari-Milano reported an increase in sales for the first half, bucking a slowdown in demand that hit beverage companies after a surge in the pandemic.

The Italian distiller's net sales were 1.52 billion euros ($1.64 billion), up 3.8% organically and 4.5% higher on a reported basis compared with the prior-year period. The result compares with analysts' forecasts of EUR1.51 billion, according to a poll of estimates compiled by Visible Alpha.

Results were mainly driven by strength in aperitif led by both Campari and Aperol labels especially in the Americas and Germany, the company said Tuesday. The rest of the Europe, Middle East and Africa region was hit by poor weather.

The core U.S. market was up by 3.5% with an acceleration in the second quarter, boosted by Espolon, Aperol and Grand Marnier brands, it said.

The company's performance in the Americas contrasts with that of its rival Diageo. The U.K. company, which counts Johnnie Walker, Guinness and Smirnoff among its brands, said earlier today that it expects demand to remain soft after consumers in North and South America pulled back spending on alcohol in its last fiscal year.

Earnings before interest and taxes dropped to EUR335.6 million from EUR343.7 million.

For the remainder of the year, the group expects to continue to outperform the industry in an environment marked by softer market dynamics and increased price competition in core markets.

However, the company noted that the macroeconomic situation remains volatile.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

July 30, 2024 06:10 ET (10:10 GMT)

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