MILAN (Reuters) -Campari Chief Executive Simon Hunt on Friday ruled out acquisitions in the short term for the Italian spirits maker and said he was focused instead on cutting the group’s debt.
With a portfolio of more than 70 brands built over the years through a string of acquisitions, Campari has plenty of options to drive revenue growth, said Hunt, who took the top job in January.
Alongside the eponymous Campari brand, the group owns names such as Wild Turkey bourbon and Espolon tequila.
In an interview with Reuters at the group’s headquarters on the outskirts of Milan, Hunt said he aimed to bring the leverage ratio down to around 2.5 times earnings before interest, tax, depreciation and amortisation, from 2.9 times EBITDA at present, a target that could be achieved partly through the disposal of smaller brands.
“I want to get it down as quickly as possible. That, then, gives us options and we’ll look at… M&A, but it will be selective,” Hunt said.
“We are not in a hurry and the reason I say that is we have so many opportunities within the existing portfolio,” said the CEO, citing as an example the future growth potential in the United States for Aperol, the group’s signature orange aperitif.
Hunt spoke to Reuters after Campari, which is majority owned by Italy’s Garavoglia family, held an investor day, outlining its long-term strategy without providing new financial targets.
The group has confirmed ambitions to return to mid-to-high single-digit revenue growth over the medium term. Hunt declined to provide a more precise timing, citing “a huge degree of volatility outside of our control.”
Hunt said Campari, with its Aperol aperitif and non-alcoholic drink Crodino, was well placed to benefit from new consumer trends favouring earlier-day drinking occasions and lower-alcohol options.
(Reporting by Elisa Anzolin; Editing by Valentina Za and Bill Berkrot)
