THE purchase of Appleton and other Lascelles deMercado (LdM) brands helped boost Campari’s sales by 35 per cent in 2013.

The Italian group posted (euro) 1.5 billion in sales for its year ending December 31, 2013, while its revenue from the former assets of Lascelles, which include sugar operations and the Wray and Nephew white rum, totalled (euro) 191 million.

It’s the first full year since Campari acquired LdM, the local-based spirits company. Campari’s bottom-line was, however, hit by restructuring and other one-off costs resulting in a 4.4 per cent dip in net profit year on year to (euro) 149 million.

“2013 is to be considered a year of transition due to a series of business initiatives (restructuring projects, product supply chain, route-to-market and integration of significant new business), challenged by tough macroeconomic conditions and impacted by volatile evolution of sales mix affecting operating margins and very unfavourable exchange rate effect,” stated the financials.

LdM’s core brand sales, which also includes Magnum Tonic Wine, was (euro) 93.4 million; other spirits and wines at (euro) 30.6 million; merchandise sales at (euro) 42 million; and supply chain (sugar and bulk) at (euro) 25.8 million.

The acquisition of LdM led to a five per cent rise in earnings before interest and taxation for the Campari group, according to the financials.

“Positive trend of Appleton, JW&N White Overproof, and Coruba driven by continued growth in core North America (in particular Canada and US) and New Zealand, [along with ] stable business in Jamaica,” the financials added.

The performance of the LdM in 2013 remains flat when compared with previous periods prior to acquisition.

“In the last twelve months ending June 30, 2012, the [acquired portion of LdM] achieved total pro-forma sales of US$277 million (or (euro) 207.6 million) and a pro-forma EBITDA of 27.7 million (or (euro) 20.7 million),” said Campari in its September 2012 release.

The release also indicated that over a separate 12-month period ending September 2011 total LdM sales were US$265.4 million (or (euro) 190.7 million at the average exchange rate for the period.

Campari acquired LdM in December 2012 for some US$409 million from Trinidad-based majority shareholder, CL Financial, and local shareholders. In September 2012, details of the proposal indicated that the acquisition would nearly double Campari’s workforce from 2,300 to 4,300. Since that time the company embarked on restructuring and announced that it laid-off some 200 workers.