company Gruppo Campari has revealed a steep 47.7% drop in Q1 profits, with falling sales and exchange rates weighing heavily on the Group.Shares fell by more than 4% to their lowest in over a month after the Q1 figures were announced yesterday, with investor confidence dropping because of weak sales in spirits and sparkling wines.
The maker of the world-famous red aperitif said that organic sales for the period fell by 3% compared to last year. However, the company also said that organic sales for april along have been more positive.
"We're talking about low to mid single-digit growth," said spokesperson Bob Kunze-Concewitz.
A late Easter period hit sales in some of its key markets hard. Russia, which accounts for 2.5% of Group revenue, registered an organic decline of 24%. Significant declines were also recorded in Japan and Australia.
There was better news for Campari with the performance of some of its lesser known brands. Sales in Germany helped Aperol increase 11% organically, and sales of Wild Turkey rose 4.5%.
