Campari warns of supply constraints after sales surge in first half

Group of Italian drinks Campari CPRI.MI announced a 19% rise in like-for-like sales in the first six months of the year, but warned that temporary supply constraints could affect shipments in the second half.

Details

The maker of Aperol and Campari amers said in a statement that so-called organic revenue reached 1.26 billion euros in the first six months of the year, slightly ahead of market forecasts of around 1.22 billion euros.

The rise was spurred by a full recovery in restaurant and bar sales in Europe following the pandemic, good weather and prices, Campari said.

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Sales of Aperol, which is the group’s best-selling product and the key ingredient in the Spritz cocktail, increased by 37%.

Adjusted operating income for the period January to June increased by 28% on an organic basis, which excludes the effects of acquisitions, to €310.9 million, with margins widening to 24.7% against 22.3% a year earlier.

However, general manager Bob Kunze-Concewitz said input and logistics costs rose throughout the year.

“We are doing what we can to compensate,” he told analysts on a call.

Campari said that in the second half of the year, it expects to continue to benefit from a positive exchange rate effect and aims to resist inflationary pressures via planned price increases and operational efficiencies.

Growth in demand for appetizers is so strong right now that the company was looking to expand existing relationships with third-party bottling companies to try to meet it, Kunze-Concewitz added in an interview with Reuters. .

Commenting on the company’s decision to confirm full-year guidance for a flat organic operating profit margin in 2022, he told analysts it was a “very good result given the backdrop.” “.

Shares slipped into negative territory after the results. At around 3.15pm GMT on Wednesday July 27, the stock was down 0.4%, underperforming a 1.5% rise in the top-tier Milan index. .FTMIB.

Note from Jefferies

“The lack of organic margin guidance upgrade may disappoint bulls,” but “the company is right to err on the side of caution here,” Jefferies said in a note.

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