Campari announced today a +8.2% rise in net sales on a reported basis to $3.1 billion (€2.9 billion) in FY 2023 with a strong end to the year in Q4, driven by aperitifs, tequila and bourbon.
Here’s the overview:
- The company reported organic growth of +10.5% in the full year, with +10.6% organic growth in the fourth quarter driven by the U.S., European and Asia Pacific markets.
- Operating profit reached $671 million in FY 2023, boosted by price increases, which helped to offset input cost inflation, investments, and a negative currency effect.
- The year ended strong in the U.S. (+12.8% in Q4), largely thanks to Espolòn, aperitifs, Russell’s Reserve and Appleton Estate, while Grand Marnier also returned to growth.
- Despite the normalizing market causing sales lags for other spirit companies and expecting “further negative foreign-exchange trends,” the company was optimistic for 2024.
The group was boosted by momentum in leading spirit categories where it has grown share over recent years. In the aperitifs category, Aperol was up +23.1% in organic growth, representing 24% of group sales and a strong Q4 performance (+22.3%). Campari sales rose +10.7% (11% of group sales) boosted by price repositioning and thanks to continued momentum and high consumption on-premise, particularly driven by cocktails like the spritz and negroni. Bourbon brands Wild Turkey saw +8.8% growth and high-margin Russell’s Reserve saw double digit growth in the U.S.
Tequila brand Espolón drew in +35.7% organic growth (8% of group sales), with sustained momentum (+30.9%) in the U.S. during Q4, as the brand continues to gain market share driven by volume share gain and positive pricing.The group outlined the brand’s “strong international growth potential” thanks to increased raw material supply and liquid availability after focused CAPEX programs. The price trend for agave, which has recently come down, and a slowdown in inflation should have a positive impact on the P&L in the second half of the year, partially offset by incremental fixed production costs, said the group.
Scheduled to close this year is Campari’s acquisition of cognac Courvoisier for $1.2 billion, and more M&A could follow the deal “within a strict financial framework to support the Group’s expansion,” said a statement. Last year, Campari increased shareholders’ voting rights in a move which carved a path towards the big acquisition.