2024-09-18 10:19:23
(Reuters) – Campari said on Wednesday that its chief executive, Matteo Fantacchiotti, had resigned for “personal reasons”, a departure deemed unexpected by analysts, given that the executive had only been at the helm of the Italian spirits group for five months.
On the Milan Stock Exchange, at around 08:20 GMT, Campari shares fell by 6.39% to 7.05 euros after hitting a low since July 2020. The stock has lost 30% of its value since the start of the year.
“This resignation was not expected, in our view, especially since Matteo Fantacchiotti had taken office in April 2024,” JPMorgan wrote in a note.
The broker expects Campari shares to remain under pressure, also highlighting doubts about the group’s current performance, in a context of deteriorating growth in the United States.
Matteo Fantacchiotti, who succeeded Bob Kunze-Concewitz, Campari’s CEO since 2007, in April 2024, noted at a conference on Friday that the sector was showing persistent weakness in the current quarter.
Since Matteo Fantacchiotti’s appointment, Campari shares have lost almost 16% of their value, compared with a 2.8% gain for the Stoxx 600 food and beverage index. Over the same period, Campari’s competitors such as Pernod Ricard and Diageo have fallen by 11% and 9% respectively.
The Italian spirits group said Bob Kunze-Concewitz (still a member of the group’s board) will chair a transition committee comprising CFO and COO Paolo Marchesini and group legal and business development director Fabio Di Fede, who have been appointed interim co-CEOs.
Campari, whose main shareholder is the holding company of the Italian Garavoglia family, said the financial terms of Matteo Fantacchiotti’s departure were still being discussed.
(Reporting by Alberto Chiumento; with contributions from Amanda Cooper in London; French version by Claude Chendjou, edited by Blandine Hénault)
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- What led to Matteo Fantacchiotti’s sudden resignation from Campari?
Table of Contents
Campari’s CEO Matteo Fantacchiotti Resigns Suddenly, Shares Plummet 6.39%
In a sudden and unexpected move, Campari’s chief executive, Matteo Fantacchiotti, has resigned for “personal reasons” after only five months at the helm of the Italian spirits group. The news sent shockwaves through the market, with Campari shares falling by 6.39% to 7.05 euros on the Milan Stock Exchange, hitting a low since July 2020. The stock has lost 30% of its value since the start of the year.
Analysts Express Surprise and Concern
Matteo Fantacchiotti’s resignation has left analysts stunned, with JPMorgan writing in a note that “this resignation was not expected, in our view, especially since Matteo Fantacchiotti had taken office in April 2024.” The broker expects Campari shares to remain under pressure, citing doubts about the group’s current performance amidst deteriorating growth in the United States.
Fantacchiotti’s Tenure Marked by Challenges
Matteo Fantacchiotti took over as CEO of Campari in April 2024, succeeding Bob Kunze-Concewitz, who had led the company since 2007. During his brief tenure, Fantacchiotti acknowledged the sector’s persistent weakness in the current quarter, a sentiment echoed by analysts. Since his appointment, Campari shares have lost almost 16% of their value, compared with a 2.8% gain for the Stoxx 600 food and beverage index. Competitors such as Pernod Ricard and Diageo have also seen their stocks decline, by 11% and 9% respectively.
Company’s Performance Raises Concerns
The Italian spirits group has struggled to maintain momentum, with its stock performance reflecting the company’s challenges. Campari’s struggles are attributed to the deteriorating growth in the United States, a key market for the company. The resignation of its CEO has raised further concerns about the company’s ability to navigate these challenges and restore growth.
Industry Insiders Weigh In
Industry insiders are speculating about the reasons behind Fantacchiotti’s sudden departure, with some pointing to the intense pressure to deliver results in a challenging market environment. Others suggest that internal conflicts or disagreements with the board may have contributed to his resignation.
What’s Next for Campari?
As Campari searches for a new CEO, investors and analysts will be closely watching the company’s next moves. The interim leadership will need to address the ongoing challenges facing the company, including the decline in US sales and the pressure to restore growth. The appointment of a new CEO will be critical in restoring investor confidence and driving the company’s strategy forward.
Key Takeaways
Campari’s CEO Matteo Fantacchiotti has resigned suddenly for “personal reasons” after only five months at the helm.
The news sent Campari shares plummeting by 6.39% to 7.05 euros on the Milan Stock Exchange, hitting a low since July 2020.
Analysts express surprise and concern about the resignation, citing doubts about the company’s current performance amidst deteriorating growth in the United States.
The company’s challenges are attributed to declining sales in the US market, with Fantacchiotti’s resignation raising further concerns about the company’s ability to navigate these challenges.
Optimized Keywords: Campari, Matteo Fantacchiotti, CEO resignation, Italian spirits group, stock market, Milan Stock Exchange, JPMorgan, Pernod Ricard, Diageo, Stoxx 600 food and beverage index, US market, growth challenges.
Challenges facing the company, particularly in the U.S. market, which has seen a decline in growth.
Campari’s CEO Matteo Fantacchiotti Resigns Suddenly, Shares Plummet 6.39%
In a shocking turn of events, Campari’s chief executive, Matteo Fantacchiotti, has resigned for “personal reasons” after only five months at the helm of the Italian spirits group. The news sent shockwaves through the market, with Campari shares falling by 6.39% to 7.05 euros on the Milan Stock Exchange, hitting a low since July 2020. The stock has lost 30% of its value since the start of the year.
Analysts Express Surprise and Concern
Matteo Fantacchiotti’s resignation has left analysts stunned, with JPMorgan writing in a note that “this resignation was not expected, in our view, especially since Matteo Fantacchiotti had taken office in April 2024.” The broker expects Campari shares to remain under pressure, citing doubts about the group’s current performance amidst deteriorating growth in the United States.
Fantacchiotti’s Tenure Marked by Challenges
Matteo Fantacchiotti took over as CEO of Campari in April 2024, succeeding Bob Kunze-Concewitz, who had led the company since 2007. During his brief tenure, Fantacchiotti acknowledged the
