MILAN (Reuters) -Italian drinks group Campari said on Tuesday sales in the first quarter jumped thanks to strong aperitif consumption as bars reopened in Europe, beating expectations.
Revenue came in at 535 million euros ($561 million) in the first three months of the year, up 29% on a like-for-like basis, more than double the increase expected by analysts.
The maker of Campari and Aperol bitters said that the positive performance was amplified by an easy comparison with the beginning of 2021 when consumption had been hit by restrictions on bars and restaurants due to the pandemic.
The Milan-based group is keeping its guidance for the rest of the year and said that it would increase the price of its beverages to compensate for rising costs.
“We confirm our guidance of flat organic EBIT margin in 2022 as we will leverage adequate price increases and positive mix to mitigate the expected intensification of the inflationary pressure on input costs,” Chief Executive Bob Kunze-Concewitz said in a statement.
Adjusted earnings before interest and taxes (EBIT) rose 59% on a like-for-like basis to 114 million euros and the profitability improved as indicated by an EBIT margin of 21.4% compared with 17.2% in the first quarter last year.
($1 = 0.9528 euros)
(Reporting by Francesca Landini, editing by Cristina Carlevaro and Keith Weir)
