DAVIDE CAMPARI-MILANO N V (Campari Group), parent company of J Wray & Nephew Limited, expects to deliver moderate organic net sales growth despite the passage of Hurricane Melissa in Jamaica.

This was the update provided by Campari’s Chief Executive Officer Simon Hunt on the company’s earnings call, which was held on October 29, one day after the passage of the hurricane. Jamaica was responsible for €147.1 million ($24.90 billion) or 4.8 per cent of Campari Group’s net sales which totalled €3.07 billion in 2024.

“In terms of this year, I want to be clear that we’ve already shipped a vast majority of the stuff that we need to close out the year out of Jamaica. And we’re sitting on healthy inventory positions to meet the demand. So I don’t see that being an impact into this fiscal or impacting our ambitions to close out the year strongly,” said Hunt who doesn’t expect any significant impact on the full year’s numbers.

Although this was Hunt’s comment on Jamaica’s contribution to the group’s overall net sales, he explained that information was limited at the time due to the disruption to communication channels and only getting piecemeal information. However, he did indicate that he would provide an update this week based on what he learnt. Hunt indicated that the primary focus by his team right now was on the safety and well-being of their teams.

“After that, we have got teams on the ground at each of our sites to assess the impacts and next steps to get us up and running as quickly as we can, recognising the infrastructure damages anticipated by the Jamaican Government. Once we have clarity on the situation, we’ll then be able to confirm our support for whatever those recovery plans are and can provide more of an update once we receive it,” stated Hunt.

J Wray & Nephew’s Instagram page revealed that all company sites were reopened on November 3 as they focused on a phased reopening while putting the well-being of their team and community as their priority. Subsequent posts revealed that the company’s 23 Dominica Drive offices were being used to mobilise aid to community members in Clarendon, St Elizabeth, and the surrounding communities.

Although the Jamaican market saw net sales growth from €105.5 million to €106.6 million ($18.92 billion) for the nine-month period, organic net sales were up 11.4 per cent. The third quarter (July to September) saw net sales improve from €26.5 million to €35.4 million ($6.28 billion) as the 2024 period was impacted by the passage of Hurricane Beryl and production constraints. The supportive underlying market trends was also a factor attributed to the improved sales performance, with Wray & Nephew Overproof Rum up 27.4 per cent and Magnum Tonic Wine up 37.2 per cent for the nine-month period.

The Jamaican Rums portfolio saw a 12 per cent rise in net sales from €106.1 million to €118.7 million due to the solid underlying trends in the Jamaican market and export sales to the United States of America from the Wray & Nephew Overproof Rum. The portfolio grew 16.4 per cent for the nine months, with third-quarter sales up 45 per cent based on the comparison to a period that was impacted by a hurricane. The Jamaican Rums portfolio was 5.2 per cent of group net sales for the nine-month period.

“In terms of the Jamaican Rum performance, really a couple of drivers on that. One is the performance in Jamaica. So, we’re cycling the disruption of the hurricane last year, which now it looks like we might be doing the same this year. So that’s one of the drivers. But the brand is incredibly powerful on the island, and the team has done an excellent job of continuing to drive the execution,” the Campari CEO explained to an analyst on the Jamaican Rums portfolio.

There are set to be infrastructure upgrades at the Jamaican distilleries in 2026, which includes high-efficiency heat and power generation, a new steam plant, and water reuse systems.

The Campari Group’s net sales for the nine-month period marginally increased to €2.28 billion as positive organic growth from its existing markets and the Courvoisier portfolio was offset by the disposal of the Australian bottling facility and exchange rate effects.

However, a four per cent dip in the cost of sales resulted in the gross profit rising three per cent to €1.396 billion. The improvement was attributed to a positive sales mix, ongoing benefits of input costs, and stock management.

Despite operating expenses climbing by double digits, the operating profit rose two per cent to €475.5 million, with the adjusted EBITDA (Earnings before interest, tax, depreciation and amortisation) rising six per cent to €628.7 million. An increase in financial expenses due to higher net debt pushed profit before tax (PBT) down five per cent to €397.9 million, with the adjusted PBT at €440.4 million.

“Within the alcohol industry, a highly discretionary segment among consumer staples, consumer engagement has remained steady. However, challenges such as constrained real disposable income, a growing focus on health and wellness post-pandemic, amplified by social media trends and the rising use of weight-loss medications, are contributing to a moderation trend,” the Campari Group explained in its nine-month release.

Campari’s former group chief financial officer (CFO) and chief operating officer, Paolo Marchesini, who retired during Q3, has been appointed as the vice-chairman of the board for a three-year term. Francesco Mele was appointed as the Group CFO on November 3. Marchesini is set to receive certain severance payments which includes the last mile incentive of €33.8 million.