Campari plunges after below-expected quarterly sales

(Il Sole 24 Ore Radiocor) - Lower than expected sales in the first quarter penalised the stock of Campari , which in Milan plunged more than 11 per cent to a daily low of EUR5.74 per share, slipping to the tail of the FTSE MIB . On 6 May, the spirits company released its sales figures for the first three months of the year, which amounted to EUR 643 million, down 3.4% reported, but with organic growth of +2.9%. The perimeter effect was -2.2%, led by the disposal of Cinzano, and the exchange rate effect -4.1%, mainly attributable to the US and Jamaican dollars. The numbers came in slightly below estimates, with the consensus forecasting revenues of EUR 651 million.

"The deviation from expectations is mainly attributable to targeted inventory optimisation in the US on non-priority brands (impact of around EUR 10m) and some timing effects in Europe, rather than a deterioration in underlying demand," they write from Intermonte. Excluding these elements, growth was in line with expectations: the group continued to outperform the industry and increase market share. Geographically, growth was 'well diversified across regions', the analysts point out. Europe grew by 1.9 per cent, North America by 2.2 per cent despite the inventory reduction, emerging markets grew by 12.7 per cent, while Apac fell by 1.6 per cent due to difficulties in the Global Travel Retail channel. The crisis in the Middle East led to a 13.5% drop in this segment, but the company does not disclose the precise size of its travel-related sales.

"At the moment, the main area of cost we are looking at concerns the cost of petrol and diesel from a logistical point of view," said the ceo, Simon Hunt. "Most of our glass contracts are long-term and most involve price bands that we have negotiated," he said, adding that he does not expect these limits "to be exceeded", although a prolonged war could change that.

However, the company confirmed its 2026 guidance, with stronger performance expected in the second half of the year. Management therefore expects organic growth of around 3%, slowing from the 2025 exit pace but consistent with a volatile macroeconomic environment. "As a result of the weaker-than-expected organic performance and persistent time effects, we are reducing our profitability estimates, mainly reflecting a more cautious view on margin progression in the first half of 2026, while leaving revenue assumptions substantially unchanged," write Intermonte's experts further, who have an 'Outperform' rating on the stock with a target price of €8.