The group’s aperitif brands, Aperol and Campari, are skewed towards on-premise consumption, and they have suffered due to bar closures around the world this summer.
Campari reported sales of €768.7 for the six months to June 30, which represents an 11.3% organic decline on 2019.
Adjusted earnings before tax and interest were down 30.8% year-on-year, dropping to €130.4 million. Group net profit decreased 40.6% to €73 million. Campari reported that increased off-trade sales helped make up for some of its on-trade losses in key markets.
The firm’s net financial debt increased from €777.4 million at the end of 2019, to €1.065 billion by June 30, 2020, after it bought Champagne Lallier, invested in online retailer Tannico and made dividend payments and share buybacks.
Campari expects the negative impacts of the coronavirus crisis to continue affecting its business in Q3, but it believes the negative impact is expected to lessen with the gradual lifting of the restrictive measures across various markets.
Chief executive Bob Kunze-Concewitz said: “The half year 2020 can certainly be characterized as an extraordinary period, and the overall scenario in the short-term still appears to be uncertain with regards to the extent and timing of the economic recovery in the context of the gradual lifting of the restrictive measures. “Nevertheless, we continue to experience solid consumption trends for our brands across key markets, although shipments are temporarily impacted by destocking, in particular, in the US market.
“While we will continue to undertake all the necessary actions to contain the effects of the pandemic on the business in the short-term, we remain focused on pursuing our long-term strategy, via the acceleration of our programs in digital transformation and e-commerce, remaining focused on our M&A strategy and leveraging the strength and resilience of our brands and organisationfor future profitable growth.”
