Campari tumbles on Q3 results

Campari shares tumbled on Wednesday after the Italian drinks maker reported a drop in third-quarter profits.

The company said adjusted earnings before interest and tax fell 18.2% to €499.4, while net sales were down 1.4% to €753.6m.

Campari said its sales performance was impacted by macroeconomic weakness, poor weather, pressure on disposable income from inflation and reduced confidence among consumers and distributors.

The profitability performance was also impacted by the continuation of already committed infrastructure investments, in a muted sales growth environment, it said.

In the Americas, Campari said its performance reflected persisting challenges in selected categories in the US, and an extraordinary impact of the hurricane in Jamaica, despite ongoing growth in aperitifs and tequila.

In Europe, particularly in on-premise skewed markets such as Italy, poor weather at the beginning of the spring-summer season as well as in September, along with softer-than-expected consumption led to below expectations re-orders in the back-end of the third quarter.

In APAC, net sales were dented by persisting challenging macro and trading conditions, it added.

Looking to the rest of the year, Campari said cyclical macro headwinds are expected to persist and that based on current visibility, it expects net sales organic growth to be at low single digit.

At 1130 GMT, the shares were down 15% at €6.60.