Italian drinks group Campari posted a 19.6% jump in like-for-like sales in the first quarter, thanks to price increases put in place last year as well as some temporary effects such as an earlier Easter.
January-to-March total revenue was €667.9 million ($732.8 million) compared with €534.8 million a year earlier, the maker of Aperol and Campari bitters said in a statement.
Adjusted operating profit margins rose to 23.9% from 21.4%, benefiting from a positive foreign exchange effect in the United States.
'Strong Start'
The results marked a "strong start" to the year, analysts at Jefferies said in a note, underlining continued revenue growth momentum across regions and particularly in the Americas.
Sales in the United States, the group's main market accounting for almost half of total turnover, jumped 23% as consumer demand held up strongly and thanks to pricing initiatives.
Only last week, peer Remy Cointreau predicted flat organic sales in financial 2023-2024, reflecting weak demand in the United States.éE
Campari's first-quarter US sales were lifted by a strong performance of its Tequila brand Espolòn, as well as triple-digit growth from Aperol, the group's best-selling product and the key ingredient for the Spritz cocktail.
2023 Guidance
The group confirmed its guidance for 2023 of a flat adjusted earnings before interest and taxes (EBIT) margin of 21.1%, given the current volatile macro-environment.
However, it warned that despite initial signs of input cost inflation easing, a normalisation in volume growth would be among the factors expected to affect margin trends.
Milan-listed shares rose as much as 3.2%, briefly extending gains after results were published.
By around 1030 GMT, the stock was up 2.5%, outperforming a 0.3% rise in Milan's blue chip index.
News by Reuters edited by Donna Ahern, Checkout. For more drinks stories click here. Click subscribe to sign up for the Checkout print edition.
