DAVIDE CAMPARI-MILANO N. V. (Campari Group), parent company of J Wray & Nephew Limited, reported that sales in Jamaica have recovered faster than expected despite the impact of Hurricane Melissa.

Jamaica had a three per cent improvement in net revenue to €73 million ($13.40 billion) for the six-month period ending June 30. These sales accounted for 4.8 per cent of Campari’s net sales of €1.51 billion during the period.

“Jamaican rums were resilient with flattish top line, including solid underlying trends in Jamaica, offset by a high comparison base in the US,” stated Campari Chief Executive Officer Simon Hunt on Wednesday’s earnings call.

The net sales to third parties by J Wray & Nephew was marginally up to €87 million, but sales for the Jamaican rums portfolio was down five per cent to €74 million. The second quarter also saw Jamaica’s special consumption tax rising 14 per cent to $1,400 per litre, a move which likely pushed sales higher before it took effect.

“Jamaica showed a positive organic net sales variation (+8.8 per cent), benefitting from a faster recovery after the impact of the hurricane and positive pricing effect benefit driven by the recent introduction of an excise duty increase,” stated Campari’s half year report.

Campari indicated in its first quarter press release that it had mid-single digit growth in Jamaica due to stronger sales of the Wray & Nephew Overproof rum with the local market consumption recovery on track. J Wray & Nephew continues to execute its utility upgrade projects as it focuses on improving reliability and reducing emissions.

Although Campari does not disclose the net earnings for its Jamaican operations until its annual report, Campari noted that there were €2 million ($367.25 million) in Jamaican hurricane expenses and a €27 million foreign exchange impact related to the United States and Jamaican dollar.

Campari’s net sales for the six months dipped one per cent due to the sale of Cinzano brand and foreign exchange impact. However, the rise in operating expenses pushed operating profit down 27 per cent to €249 million, with adjusted earnings before interest, tax, depreciation and amortisation up seven per cent to €430 million. The profit before tax declined 28 per cent to €211 million with consolidated net profit down 37 per cent to €129 million.

Hunt noted on the company’s earnings call that the company has filed a €15 million claim for tariff refunds from the USA. Campari noted that it continues to carefully assess the risk of tariffs and has implemented inventory management, mitigatory actions and other strategies to manage the evolving geopolitical landscape.

“Overall, we’re encouraged by the progress we made in the first half. We continue to remain fully focused on executing the strategy we presented at our Capital Markets Day, with positive traction across our priority brands and geographies for five quarters now,” Hunt closed.