The share of Davide Campari-Milano fell 7.2%, as the Italian beverage company announced that the highest cost hit earnings at the end of last year, and will continue to do so.
Despite the increase in revenues that met the estimates, operating profit for the quarter was hit by higher spending and cost inflation, Campari said, as it announced the results for 2021.
This resulted in adjusted earnings before taxes and interest for the whole year of 432.5 million Euros, slightly lower than the convergent estimates.
Higher costs will hurt profitability this year as well, said Campari CEO Bob Kunze-Concewitz.
The company is “postponing” the expansion of the gross margin by 70 basis points that it had announced as a target for 2022, and does not expect any significant organic growth this year in the operating margin, Kunze said.
Campari’s operating margin in 2021 reached 20%.
He added that the company remains focused on investing in its brands and activities, and will try to offset the higher costs through price increases.
Source: Capital
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