Italian drinks group Campari posted a 14.2% rise in like-for-like revenues in the first half of this year and confirmed its margin target for the year but its shares slid on some disappointment over the figures.
Sales growth for the maker of Aperol and Campari bitters slowed down in the second quarter compared to the first three months this year, which had benefitted from some temporary effects.
Poor Weather Impact
Sales in the last three months were affected by "very poor weather across core Southern and Central Europe and temporary delistings from selected European retailers due to commercial negotiations in connection with price increases," the company said on Wednesday.
First-half net sales came in at €1.46 billion, while analysts expected €1.47 billion, according to a company provided consensus cited by Italian broker Equita.
'Beat-And-Raise To Perform'
Jefferies analysts said the shares needed a 'beat-and-raise to perform' after a strong showing so far this year.
Campari's adjusted operating profit rose 15.1% organically to €360 million in the first six months.
It confirmed its guidance of a flat organic adjusted EBIT margin for 2023.
"Looking at the remainder of 2023, we remain confident of the positive business momentum across key brand-market combinations, reflecting business seasonality and expected normalisation in volume growth" CEO Bob Kunze-Concewitz said in a statement.
News by Reuters, edited by Donna Ahern, Checkout. For more drinks stories click here. Click subscribe to sign up for the Checkout print edition.