Currency headwinds and non-core asset disposals weigh on Gruppo Campari’s half-year results

Gruppo Campari said on Tuesday that the combined effect of currency headwinds, termination of distribution agreements and sale of non-core businesses led to decline in sales and profit in the first-half of 2016.

The maker of SkYY vodka, Aperol and Cynar among others reported 1.8% decline in revenue in the six-months ended June 30 to €743.9m, down from €757.9m in the same period last year.

The spirits maker said that group net profit fell 13.8% to €67.2m, down from €77.9m made in the preceding year.

Gruppo Campari noted that it posted positive revenue growth in two of the four regions where it does business. SEMEA region which includes Southern Europe, Middle East and Africa had 0.6% revenue growth, while North, Central and Eastern Europe was the star performer with 9.1% sales growth. Sales declined 8% in the Americas and 2.6% in the Asia-Pacific region.

While the group may have had weak results in some key regions, the Americas region still led with 40% or €297.7m, the highest revenue contributor to group sales. SEMEA region (Southern Europe, Middle East and Africa) came in second with 34.8% or €258.7m of group sales. North, Central and Eastern Europe pulled in 18.7% or €139.5m, while the Asia-Pacific region trailed with 6.5% or €48m of group sales.

On revenue derived from its Global Priority brands, Campari said it registered a very positive organic growth of +9.5%. The result was driven by the very good performance in Italy, Argentina and Jamaica, as well as Germany, US, France, Greece and the UK. The overall performance was partially offset by weakness in Brazil and Nigeria where the company said there were reduced shipments due to macro-economic factors.

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