Third-quarter sales at Italian spirits group Campari rose 18.6% on a like-for-like basis, boosted by robust brand momentum in the key summer season and helped by price increases, the company said on Thursday.
Campari's adjusted operating profit was up 10.6% in the quarter, but the margin on the revenues worsened due to the rising costs, particularly for logistics, and a less favourable geographic sales mix.
Full Year Guidance
Campari, whose brands include Aperol and Wild Turkey, confirmed its full year guidance of flat organic margin for EBIT-adjusted earnings.
The strong US dollar boosted the group's sales and profitability, as the United States is Campari's single largest market.
"Looking at the medium term, we remain confident in the strength of our brands, enabling adequate pricing actions, to navigate through the current challenges", Bob Kunze-Concewitz, chief executive said in a statement.
Shares in the Milan-based group bounced after the results and were up 1.5% at 1010 GMT.
A Milan-based trader said that the quarter results were stronger than expected, despite the gross margin trend.
Campari said that it recently acquired a minority stake in London-based Catalyst Spirits, a global spirits brand incubator company and the main shareholder of Howler Head.
Earlier this year Campari bought a 15% stake in bourbon brand Howler Head with global distribution rights.
News by Reuters, edited by Donna Ahern, Checkout. For more drinks stories click here. Click subscribe to sign up for the Checkout print edition.