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Campari Group profits drop one third in Q2

Published:  28 July, 2020

The Campari Group has reported a 33.5% drop in net profit, down to €77.6m, across the second quarter of 2020, with sales down 11.3%, at €768.7m.

In the release of the company’s first half 2020 results on 28 July, the EBIT adjusted decline was 30.8%, at €130.4m, with Covid-19 and on-trade shutdowns cited as major impacts on the aperitif business.

Sales to the off-trade faired better, but were again impacted by the crisis, largely due to businesses destocking, said the report.

Sales in Americas (46.6% of total Group sales) were down organically by 7.6%, with the leading US market down 4.1%, while Southern Europe, Middle East and Africa (23.8% of total sales) were down 32.8%.

On a brighter note, North, Central and Eastern Europe (22.4% of sales) grew organically by 5.9%, with the UK up 36.2%, down to “the strong performance of the off-trade and e-commerce channels during lockdown”, and Russia also grew, by 19.2%.

Campari said it expected the impact of the pandemic to begin lifting in the third quarter with “the gradual lifting of restrictions across global markets”, and once wholesaler destocking has run its course.

“The half year 2020 can certainly be characterized as an extraordinary period, and the overall scenario in the short-term still appears to be uncertain with regards to the extent and timing of the economic recovery in the context of the gradual lifting of the restrictive measures,” said Campari Group CEO Bob Kunze-Concewitz.

“Nevertheless, we continue to experience solid consumption trends for our brands across key markets, although shipments are temporarily impacted by destocking, in particular, in the US market.”

The company said it will continue to focus on accelerating its digital transformation and e-commerce platforms in response to the crisis, bringing forward its long term goals in these areas.