Shares of Italian distiller Davide Campari-Milano, the parent company of Aperol, took a sharp 11% dive to EUR9.85 on Thursday. The drop came in the wake of a trading halt and a disappointing third quarter performance that fell short of analysts' expectations.
The company posted sales of 743.5 million euros ($785.6 million) for the quarter ending in September, achieving an organic growth rate of just 4.4%. This was significantly lower than the 8.5% growth projected by Visible Alpha analysts.
Furthermore, earnings before interest and taxes (EBIT) dropped to EUR147.4 million from EUR177.2 million in the same period last year.
Campari-Milano attributed its underperformance to a shift towards market normalization and unfavorable weather conditions in its major European markets. These factors negatively impacted sales of aperitifs during their peak season, primarily in Italy.
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