Campari Forecasts Gradual Improvement After Revenue Disappoints
Davide Campari-Milano SpA (CPR), the maker of Skyy vodka and Wild Turkey bourbon, said it expects “gradual” improvement in the second half after reporting sales in the first six months of 2013 that missed analyst estimates.
Revenue advanced to 698.6 million euros ($928 million) from 618.3 million euros a year earlier, the Milan-based company said in a statement today. Analysts on average predicted revenue of 711 million euros, according to a survey compiled by Bloomberg. Sales excluding the effect of acquisitions and disposals slid 3.3 percent, partly due to a change in Italy’s shipment laws.
“We expect the business to continue improving gradually over the second half of 2013, driven by sustained brand building across key brand-market combinations and the strengthening resonance of the brand portfolio in new geographies,” the company said.
Chief Executive Officer Bob Kunze-Concewitz is bringing Campari products to new markets and expanding into new categories as a sluggish economy restrains growth in Europe. Campari added Appleton rum to its portfolio last year with the acquisition of Lascelles DeMercado & Co.
Campari shares rose as much as 2.6 percent and were up 2.5 percent at 6.085 euros at 11:44 a.m. in Milan. The stock has gained about 8 percent in 12 months.
Earnings before interest and taxes fell to 120.5 million euros in the period, from 143.8 million euros a year earlier.
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