Mon | Aug 21, 2017

Campari gets €5m boost from pension plan closure in Jamaica

Published:Wednesday | August 3, 2016 | 8:00 AM
The Appleton Estate in St Elizabeth, one of the jamaican assets owned by Campari Group.

Campari Group, parent company of J. Wray & Nephew Limited, gained €5.2 million ($710 million) arising from the closure of the pension plan in Jamaica, according to the Italian company's half-year financials.

Overall, Campari Group made net profit €67.2 million, which was 14 per cent less than a year ago.

"Financial income for the period included non-recurring income from the sale of financial assets following the closure of pension plans in Jamaica, which had been classified as available for sale at 31 December 2015, totalling €5.2 million," the financials stated.

Revenues from Jamaica dipped to €33.7 million from €56.6 million due to the sale of non-core businesses in 2015, including Federated Pharmaceuticals Limited.

"Stripping out this distortive effect, sales attributable entirely to the spirits and wines core business would have been higher than in the previous year up 9.6 per cent," said Campari.

 

2Q OUTLOOK

 

In its outlook for the second half of 2016, the group expects continued volatility in some emerging markets and uncertainty on the movements of group's key foreign currencies.

At the same time, Campari remains confident that it will deliver a positive and profitable business performance.

"With regards to the brand portfolio, the group expects a continued growth of high-margin global priorities, particularly the aperitifs, American whiskies and Jamaican rums, also thanks to a further strengthening of brand building investments in the second half of the year to fuel long-term growth," stated the spirits company.

Campari also expects innovation to continue to drive the expansion of premium offerings.

steven.jackson@gleanerjm.com