Drinks Maker Campari Puts Margin Target On Ice Over Costs
Italian drinks group Campari CPRI.MI said on Wednesday 23 February that rising input costs would push back expected profitability gains, sending shares down more than 6%.
The maker of Aperol and Campari bitters, which had forecast gross margin to improve by approximately 70 basis points this year, warned that this increase would not materialise due to higher costs.
Campari now expects its operating margin to remain stable on a like-for-like basis this year compared with 2021.
Statement By CEO
"Temporary input costs pressure is expected to further intensify during the current year, postponing the gross margin accretion and ultimately leading to broadly unchanged organic EBIT margin in 2022," CEO Bob Kunze-Concewitz said in a statement.
Shares in Campari were down 6.6% at 1105 GMT on Wednesday 23 February.
Possibility Of Beverage Price Hikes
The Milan-based group said that the new outlook included the possibility of beverage price hikes to mitigate rising costs.
Rise In Like-For-Like Sales
Campari reported a nearly 26% rise in like-for-like sales in 2021 helped by increased online purchases of spirits and cocktail consumption at home.