Organic sales growth in Argentina was up 41.2% in Argentina across FY2014, with Q4 results showing a 44% increase. In Brazil, overall organic sales were up 7.6% in the year and 7.2% in the quarter.
The group says the popularity of classic cocktails is driving growth of top brand Campari, with Argentina and Brazil no exception to the trend (Campari saw organic growth of 9.8% worldwide in FY2014, and 16% growth in Q4).
Triple-digit growth for Campari
Reporting its full year results ending December 31, 2014, Gruppo Campari grew sales by 2.4% (organic growth 3.4%) to €1.56bn ($1.65bn). However, group net profit was down 13.9%, which the group attributes to negative one-offs, such as restructuring initiatives and write down of intangible assets (€43.2m).
Gruppo Campari, the sixth-largest player in the global premium spirits industry, says it has leading positions Europe and the Americas.
Argentina – which currently accounts for 2.3% of group sales - saw triple digit growth in Campari, one of Gruppo Campari’s flagship brands. Other key premium spirits in the group also performed well in the country: SKYY saw double digit growth, as did Cinzano Vermouth and Aperol.
Glen Grant and Old Smuggler whiskies also saw strong performances in Argentina.
Unfavorable FOREX movements hit Americas sales
Sales in Brazil – which accounts for 5.2% of total group sales - showed organic growth of +7.6%, again attributed to good performance in Campari, SKYY and Aperol. On a smaller scale, imported spirits also helped push growth. Local brands were up 3.7%, with Brazilian brandy Dreher making up for soft performances in the local whiskies.
Across the Americas, the group reported organic sales growth of 4% in FY 2014 (and 6.5% in Q4), attributing this to the strong growth momentum in Argentina and Brazil.
However, the percentage of group sales in the Americas dropped from 40.9% in 2013 to 38.8% in 2014, attributed to an unfavorable FOREX (foreign exchange) effect. In monetary terms, this equates to €623.3m in 2013 to €605.1m in 2014 (down 2.9%).
'Positive performance in all regions'
“In 2014 group sales totalled €1,560m showing a reported increase of +2.4%, driven by an organic sales growth of +3.4%, with acceleration in the fourth quarter (+4.2%),” Gruppo Campari said in a statement. “With regards to the organic sales growth, all regions showed positive performance in 2014.
“Americas were up by +4.0%, mitigated by continuing realignment of shipment with positive underlying depletions and consumption trends in the US, particularly for Wild Turkey bourbon, and continued strong growth momentum in Argentina and Brazil.”