(Bloomberg) -- Shares of Davide Campari-Milano NV rose in Milan after the distiller reported full-year earnings ahead of analyst estimates.

Adjusted earnings before interest and tax for the year totaled €618.7 million ($671 million), compared with a Bloomberg consensus estimate of €598.1 million.

The Milan-based firm said it was upbeat on continued outperformance for the drinks sector, in “a normalizing macro environment.”

The shares rose as much as 7.5%, and traded up 6.5% at 11:33 a.m. local time.

The price trend for agave, a key ingredient, and “moderating inflationary environment are expected to be gradually reflected across the P&L from the second half of the year,” the company said.

Campari last month sold €650 million of shares along with bonds convertible to equity to fund its purchase of the Courvoisier cognac brand. 

Negative forex trends are expected to continue, though “easing vs. the previous year, while the perimeter will start reflecting the addition of Courvoisier,” the company said.

In its outlook statement, Campari said it foresees “consistent operating margin expansion driven by sales mix, pricing, input cost inflation easing and operational efficiencies,” without providing details. 


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