Davide Campari-Milano SpA (CPR), the maker of Wild Turkey bourbon, reported first-half profit that slightly missed analysts’ estimates and said that it bought the Sagatiba brand to expand in the Brazilian spirits market.
Net income in the six months ending June 30 rose to 75.3 million euros ($107 million) from 69.3 million euros a year earlier, the Milan-based company said in a statement today. That compared with the 76.7 million-euro average estimate of eight analysts in a Bloomberg survey. Revenue climbed 14 percent to 589.1 million euros in the period as sales rose in Germany.
Chief Executive Officer Bob Kunze-Concewitz said in May that the company expects as much as 30 percent of sales to come from emerging markets within five years, and that it plans to expand in Latin America, eastern Europe, the Pacific region and Africa. The company is looking to buy brands and has more than 500 million euros to spend, he said at the time. Campari is “optimistic” about its prospects for the full year, the CEO said in the statement today.
Campari paid $26 million for Sagatiba, which it started selling in Latin America under a distribution agreement in March 2010. “Sagatiba, the leading super premium and fast growing cachaca brand in Brazil, significantly strengthens our brand portfolio in that key emerging market,” said Kunze-Concewitz.
The shares fell 1 percent as of 11:56 a.m. in Milan, giving the company a market value of 3.2 billion euros.
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