Davide Campari-Milano Sees Strong Sales Growth Driven by Key Brands
Davide Campari-Milano reports strong sales growth in the first nine months, driven by their key brands and robust pricing strategies.
Davide Campari-Milano, the Italian distiller, has reported higher sales in the first nine months of the year. This growth has been fueled by the strong brand momentum of their aperitifs, tequila, and premium bourbon, as well as robust pricing strategies.
Earnings before interest and taxes for the period reached €491.1 million, up from €466.1 million in the previous year. Despite the expected normalization in the third quarter and unfavorable weather conditions in Europe, the company achieved reported sales of €2.20 billion, representing a 9.8% increase year-on-year. All regions experienced organic growth, with the Americas contributing the most to the Group's sales at 43.5%.
Bob Kunze-Concewitz, the Chief Executive of Davide Campari-Milano, expressed confidence in the company's future performance for the remainder of 2023. He expects the topline to continue to benefit from the strength of their key brands, outperforming core reference markets. Additionally, positive pricing and the normalization of volume growth are expected to contribute to their success.
Looking ahead to 2023, the company anticipates a flat organic adjusted EBIT margin. It also foresees negative foreign exchange trends due to the weakening U.S. dollar and other key emerging market currencies, as well as the appreciation of the Mexican Peso.
In conclusion, Davide Campari-Milano is pleased with its strong sales growth and remains optimistic about its future prospects.