By Andrea Figueras
Davide Campari-Milano said that it has a positive outlook for 2024 despite what it called a normalizing macroeconomic environment and further negative foreign-exchange trends for the year.
The Italian drinks group booked adjusted earnings before interest and taxes of 618.7 million euros ($671.5 million) in 2023, compared with EUR569.9 million in the prior year and ahead of analysts’ forecasts of EUR597 million, according to a poll of analysts’ estimates compiled by FactSet. The adjusted operating margin was flat on year at 21.2%.
The maker of Aperol and Campari aperitifs said that sales rose 10.5% organically to EUR2.92 billion, compared with analysts’ expectations of EUR2.93 billion, according to FactSet.
“In 2023 we delivered another year of best-in-class organic topline growth thanks to very healthy brand momentum, in particular from aperitifs, tequila and bourbon, and industry outperformance despite macroeconomic challenges and the expected consumption normalisation after exceptional growth post-pandemic,” Chief Executive Bob Kunze-Concewitz said.
At 1138 GMT on Tuesday shares were up 4.9% at EUR10.02. Drinks makers Remy Cointreau, Pernod Ricard and Diageo saw their stocks rise after Campari posted its full year results. Shares were up 1.5%, 1.3% and 1.1%, respectively.
In China, Campari reported an overall very positive performance and said that it intends to create a new route-to-market in the country with a targeted regional distribution model.
“With a strong portfolio of brands, the group is confident in successfully building the Chinese business using a strengthened distribution platform in accordance with the strategy for that market,” it said.
The move follows the company’s planned acquisition of Beam Holding France, the owner of Courvoisier cognac, which was first announced in December and is expected to close this year.
“Courvoisier will enable a significant step up in the U.S. while also permitting long-term transformational potential in the strategic Asia-Pacific region,” said Deputy CEO Matteo Fantacchiotti at the time the deal was made public.
The company didn’t mention any impact of the anti-dumping investigation that the Chinese government launched in January on brandy imported from the European Union, which was seen as a potential hit to the performance of drinks makers.
In the medium-term, Campari anticipates continued healthy brand momentum as well as industry outperformance. “We expect consistent operating margin expansion driven by sales mix, pricing, input cost inflation easing and operational efficiencies, with continuous reinvestment into brand building and commercial capabilities to fuel organic topline growth,” the company said.
The company also plans to change its headquarters, for which it will make an initial investment of EUR110 million this year plus renovations. “The move is expected in 2027 after renovations,” it said.
The group will propose a dividend of EUR0.065 a share for the year, up 8.3% versus the previous year.
Write to Andrea Figueras at andrea.figueras@wsj.com
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