Davide Campari-Milano has reported 13% increase in sales to €698.6m for the first half ended 30 June 2013 compared to the prior year period.

The group’s results in the first half of 2013 were in line with expectations, driven by the return to a positive organic sales performance in Q2 and the positive contribution of the acquisition of Lascelles deMercado (LdM).

EBITDA decreased by 11.7% or 20.1% of sales to €140.7m during the reporting period while group net profit was down by 26.1% to €57.6m.

In the US, sales registered an organic increase of 8.2%, driven by double digit growth in the Wild Turkey franchise, driven by Wild Turkey bourbon and American Honey, and Campari as well as continued positive performance of the SKYY franchise.

The Italian market recorded an overall decline of 15.7% while sales in the rest of Europe grew by 4.6% overall.

Sales in the rest of the world, including Global Travel Retail, which accounted for 9.3% of total Group sales, grew by 7.9% overall.

Looking at sales by the key brands, regarding spirits, Campari registered an organic growth of 1.5% in the first half of 2013 notwithstanding the weak shipments in Italy, still impacted by the trade destocking registered in the first quarter.

SKYY sales achieved an organic growth of 4.8%, driven by the continued positive performance in the US thanks to SKYY Infusions’ continued success.

The Tequila portfolio registered a continued organic growth of 12.0%, driven by both Espolón and Cabo Wabo in the key US market.

In terms of wines, which accounted for 11.8% of total sales, Cinzano vermouths registered an organic growth of 0.9%, driven by the positive performances in Russia and Germany which offset declines in other developed markets.

In terms of soft drinks, Crodino declined by 29.6% as a result of the first quarter destocking, very challenging trading and consumer environment in day bars and off trade channels in Italy as well as the very poor weather conditions registered in the second quarter.

CEO Bob Kunze-Concewitz said the aperitif business proved its resilience, although it was affected by very adverse weather conditions.

"Following the negative impact of the one-off destocking in Italy in the first quarter of 2013, the overall performance in first half of 2013 was also affected by a disproportional concentration of non-recurring charges which reflected the decisions of the Group to accelerate on restructuring projects to strengthen the business in the medium term," he added.

"Looking forward, whilst the Group’s overall trading environment should remain volatile due to macroeconomic difficulties in key markets, we expect the business to continue improving gradually over the second half of 2013, driven by sustained brand building across key brand-market combinations and the strengthening resonance of the brand portfolio in new geographies."