Italian distiller Davide Campari-Milano SpA withdrew its outlook for 2020, noting that it is "premature" for the company to provide reliable estimates on the impact of the coronavirus outbreak on its financial results.
The group expects COVID-19 to mainly affect the consumption trends in the on-premise channel, strongly impacted by the restrictions in the beverage company's key markets, including Italy. Impact on the off-premise channel is anticipated to be comparatively more limited.
Campari expects the first-quarter impact to be mainly in the Italian market in the last month, while the second quarter, which is the peak season for aperitif beverages, is forecast to be more heavily affected, but to what extent is unknown.
Meanwhile, the company's shareholders approved the transfer of its registered office to the Netherlands. The transfer is subject to certain conditions, including that the shareholder withdrawal amount does not exceed €150 million in aggregate.