Campari Italy Sales Unexpectedly Drop 1% in Q3

Campari's Italian sales have unexpectedly fallen by 1% during the third quarter as demand slows

Italian aperitif maker Campari said on Tuesday that its domestic sales fell by 1% in the third quarter, missing analysts' estimates, as a slowdown in demand hit its home market. Campari, known for its eponymous red bitter and Aperol aperitif, reported a 1.4% rise in organic sales for the nine months to the end of September, below the 2.5% increase forecast by analysts, hurt by weak sales at bars and restaurants in its home country.

Campari's organic sales rose 4.3% in the third quarter, excluding the impact of the Italian market.

The group's international business, which accounts for over 80% of sales, continued to drive growth, with organic sales rising 4.3% in the third quarter, excluding the impact of the Italian market. This was largely driven by strong growth in the United States and Latin America, where demand for its Aperol Spritz cocktail is booming.

Campari's overall sales rose by 0.8% to 408.4 million euros ($436.2 million) in the third quarter, with growth in international markets offsetting the decline in Italy. The group confirmed its full-year guidance, expecting organic sales growth of between 2% and 4%.

The company's shares were down 2.5% at 0740 GMT, underperforming the broader Italian market, which was up 0.3%. A slowdown in demand in Italy is a concern for Campari, as the country is its second-largest market after the United States.

Campari has been investing heavily in marketing and innovation in recent years, and it is expected to launch a new Aperol variant in the United States in the coming months. The group is also looking to expand its distribution in emerging markets such as China and India.