UPDATE 2-Campari Q1 pretax profit falls, destocking hurts

* Q1 revs down 0.4 percent

* Hurt by continued destocking

* Spirits doing better than some market trends

(Adds details from conference call, analyst comment)

MILAN, May 13 (Reuters) - Italian drinks group Campari (CPRI.MI) expects consumption for its key brands to pick up as destocking -- which hurt the first quarter -- ends in some markets.

"We expect to benefit from the consumption momentum behind key brands, the reduction of destocking pressure as well as an improving input costs and currency outlook," Chief Executive Bob Kunze-Concewitz said in a statement on Wednesday.

"However, we will maintain a cautious stance, with focus on cost containment, working capital and cash generation throughout the year."

Campari, best known for its bitter, red aperitif, said consumption of its spirits had outpaced some market trends in the first quarter.

Campari spirits saw consumption rise 11.7 percent in the first quarter in the United States compared to the spirit market's 2.8 percent rise. Demand for its SKYY vodka brand rose 17.7 percent there, according to slides on its website.

The Italian spirits market saw consumption fall 2.6 percent, while Campari spirits rose 0.7 percent.

Campari on Wednesday reported a 4.1 percent fall in pretax profit in the first quarter to 38.4 million euros ($52.41 million). Sales fell 0.4 percent to 190.1 million euros. At constant exchange rates they fell 2.5 percent.

"In a tough economic environment, Campari results in the first quarter 2009 were overall satisfactory," the company said.

"Although ... performance was negatively affected, as expected, by the continued destocking in selected markets."

COMING OUT OF THE TUNNEL

Looking ahead, destocking was seen slowing in some markets.

"We're coming out of the tunnel in Italy, we're seeing the light at the end of the tunnel in the U.S. and in western Europe, in Brazil we're probably somewhere in the middle and in eastern Europe we're way back," Kunze-Concewitz said on the call.

Campari last month said it had agreed to buy the Wild Turkey straight bourbon whiskey brand from Pernod Ricard (PERP.PA) for $575 million in its largest acquisition to date aimed at boosting its U.S. presence.

Kunze-Concewitz said on the call the deal could be completed by the end of the month or early June.

Shares closed down 2.22 percent at 5.28 euros. UBS said in a note the results were "weaker than we expected".

"Campari believes underlying consumption increased in Q1. However, we are cautious on sales as the comparables become tougher in Q2-4," it said.

($1=.7327 Euro)

(Additional reporting by Maria Pia Quaglia; Editing by Sharon Lindores)