Davide Campari-Milano SpA, the maker of Wild Turkey bourbon, fell the most on Italy’s benchmark index after reporting earnings that missed estimates and giving a downbeat assessment of its domestic market.
Campari dropped 5.9 percent to 5.86 euros at the close of trading in Milan, the steepest decline today on the FTSE MIB Index of 40 companies and the biggest slide since Nov. 14, 2011.
Nine-month earnings before interest and tax and excluding one-time items rose 2 percent to 213.9 million euros ($272 million), the Milan-based distiller said today. Third-quarter profit on that basis was 66.5 million euros, according to Bloomberg calculations based on the company’s six-month results. That missed the 72.3 million-euro average Ebit estimate of eight analysts. Campari didn’t report third-quarter figures.
The results were hurt by “a sudden change in September of consumption and trading conditions in Italy, poor trading in the high seasonal summer period in Germany and a less favorable macroeconomic environment” elsewhere in western Europe, Chief Executive Officer Bob Kunze-Concewitz said in the statement.
Business conditions in Italy, where Campari gets almost a third of annual revenue, are likely to remain volatile in the fourth quarter and early next year, the CEO said.
Consumer confidence in the country “will continue to be adversely impacted by high unemployment, higher taxation and increasing political uncertainty, whilst the recent implementation of some legislation, which introduces restrictions affecting commercial relationships, is likely to generate trade destocking,” Kunze-Concewitz said.
The CEO said he expects “continued positive momentum” in North America and Asia-Pacific, as well as improving performance in Brazil and Germany.