Campari Backs 2023 View as Aperitif Sales Boost 1Q Earnings

By Joshua Kirby

Davide Campari-Milano on Tuesday backed its margin guidance for the year, as sales of the group's aperitifs helped earnings grow beyond expectations in the first quarter.

The Italian distiller booked adjusted earnings before interest and taxes of 159.3 million euros ($174.8 million,) above the EUR131.5 million expected by analysts, according to a poll of forecasts compiled by FactSet.

Sales in the quarter came to EUR667.9 million, rising 20% on year organically, and also beating analysts' expectations. Particularly good sales of the higher-margin aperitifs, which include Aperol and Campari, helped boost profitability, Campari said. The group's adjusted operating margin climbing to 23.9% from 21.4% in the same period last year.

Profitability was also boosted by price hikes put in place last year, and by operating leverage that offset continued high input costs, notably in glass, Campari said.

"We remain confident about the positive business momentum across key brands and markets thanks to strong brand equity as well as strength in the on-premise," Chief Executive Bob Kunze-Concewitz said, referring to sales in bars and restaurants.

The group still expects a flat adjusted operating margin for the year, Mr. Kunze-Concewitz said, noting the volatile macro-economic environment.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

May 02, 2023 05:21 ET (09:21 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.