A sudden and episodic setback? Or is it the first symptom of a drop in consumption, foreshadowing the winds of recession and having ramifications in the future years? The third quarter of Campari, the Garavoglia family's company that makes the renowned red drink, came in below analysts' estimates. Revenues, in particular, disappointed, declining slightly to €743.5 million (-1%), but falling short of the €775 million forecast. Adjusted EBIT decreased to €161 million (-11%), falling short of the SIM's projection of €180 million. The third-quarter sales loss was caused by unfavorable weather, particularly in Italy, the leading European market and the second in the globe. Who doesn't recall the summer's blistering heat and water bombs, which made the need for an aperitif vanish? The exchange rate between the Mexican peso and the US dollar, on the other hand, had an impact on adjusted EBITD, with Espolon tequila accounting for 8% of turnover while being marketed nearly entirely in the US. The company is optimistic about future sales and profit expansion. With a portfolio of 50 brands, it is confident that it is capitalizing on the power of its main goods, Aperol and Campari, which distinguish the firm from all other companies and are mostly consumed in Italy. American bourbon Wild Turkey is drunk alongside Jamaican rums mostly in the United States, the largest and fastest expanding market, while Skyy vodka continues to spread, particularly in China.
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