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Campari posts 4.2% growth on the back of Grand Marnier acquisition

Published:  28 February, 2017

Gruppo Campari has reported 4.2% annual growth to €1.7bn boosted by a solid contribution from the Grand Marnier acquisition.

Gruppo Campari has reported 4.2% annual growth to €1.7bn boosted by a solid contribution from the Grand Marnier acquisition.

The Italian drinks group, which recorded organic net growth of 4.7%, said it had sustained growth in top and bottom line thanks to the "continuous improvement of sales mix" driven by key brands alongside the acquisition of Grand Marnier, which it said had contributed €81.5m in net sales and €16.1 million in EBIT adjusted, included in the perimeter effect.

A continued outperformance of the high margin global and regional priority brands in key high margin developed markets had helped compensate challenges in emerging markets, as well as balancing the negative impact of the low margin non-core sugar business in Jamaica, said ceo Bob Kunze-Concewitz.

The group had delivered "sound growth" across all key performance indicators in 2016, in reported as well as organic terms, he added.

Looking ahead to 2017, the outlook remained "fairly balanced", said Kunze-Concewitz.

"Regarding the macroeconomic environment, the uncertain political environments in developed markets and challenging emerging economies may affect consumption trends and currencies, yet we remain confident to continue delivering a positive full year top and bottom line performance thanks to the consistent growth of our premium portfolio, positively leveraging our strengthened distribution capabilities and brand building investments."

On the back of the results, Campari has proposed full year dividend of €0.045 per share, in line with previous year, reflecting a proposed 1 to 2 stock split.

Campari reached an agreement to acquire Grand Marnier and its parent company Société des Produits Marndier Lapostolle - valued at €682.9m - in March last year.