Davide Campari - Campari Group announces first quarter 2024 results

Sample article from our Food & Beverage

May 7, 2024 (press release) –

A good start of the year with resilient performance

in light of the expected tough comparison base, in a small quarter

Growth driven primarily by Global Priority brands, largely aperitifs in EMEA and LATAM

as well as Espolòn in the US

Continued industry outperformance leveraging strong brands in growing categories


Campari Group delivered a resilient performance in the first three months of 2024 in light of the expected tough comparison base in a small quarter. Net Sales organic growth was primarily driven by overall continued strength in aperitifs led by Campari and Aperol despite the challenging comparison base, largely thanks to EMEA and LATAM markets, while Espolòn in the US continued to show solid momentum. EBIT-adjusted was down -2.3% organically, indicating -60bps vs Q1 2023 due to the dilutive effect of SG&A after flattish net sales growth. Gross margin was stable as pricing and positive sales mix fully offset expected COGS headwinds. Outlook for the full year remains unchanged.

  • Net sales of €663.5 million, up +0.2% organically and -0.7% on a reported basis including perimeter impact of +0.6% driven by agency brands and FX effect of-1.4%mainly attributable to the US$. Against a normalized Q1 2023, excluding the temporary phasing effect ahead of price increases mainly impacting Italy and the US in the aperitifs and Espolòn, organic sales growth would be c. +6%.
  • EBIT-adjustedof €151.5 million, down -2.3% organically and -4.9% on a reported basis, with margin of 22.8%. Excluding the temporary positive phasing effect in Q1 2023, EBIT-adjusted organic growth would be c. +13% with flat gross margin.
  • EBITDA-adjustedof €181.1 million, up +0.6% organically and down -1.7%on a reported basis, with margin of 27.3%.
  • Group profit before taxation at €145.0 million, up +8.6% on a reported basis. Group profit before taxation-adjusted of €147.3 million, up +5.8%.
  • Net debt1toEBITDA-adj.at 1.8 times (vs. 2.5 times at December 31st, 2023) or 3.5 times with pro-forma net debt2 after the closing of the Courvoisier acquisition excluding the positive P&L effect of its first-time consolidation.

The Board of Directors of Davide Campari-Milano N.V. (Reuters CPRI.MI-Bloomberg CPR IM) approved the additional financial information for the three months ended March 31st, 2024.

Matteo Fantacchiotti, Chief Executive Officer: 'We entered the year yet again with momentum and a resilient performance in a low season quarter and despite the expected tough comparison base. Going forward, our outlook remains unchanged. With normalizing industry consumption patterns and volatile macro environment, we expect continued industry outperformance thanks to our healthy brands playing in growing categories, particularly in aperitifs and tequila. For themedium-term,we remain confident about continued growth momentum to deliver profitable growth. With the very recent closing of Courvoisier deal, we are also pleased to celebrate and welcome this iconicmaisonof superior quality and prestige cognac to our portfolio of premium and global brands and we look forward to start unleashing its full potential.'.

  1. Net debt as of 31 March 2024 including the effect of the equity raise and convertible bond issue
  2. Reported last 12 months EBITDA excluding Courvoisier impact/Net debt as of March 31 st 2024 plus Enterprise Value of Courvoisier of €1.2 billion closed on April 30th 2024

Page 1 of 7


Analysis of organic change by geography:

  • Sales in the Americas (48% of total Group sales) were up by +1.5%. The core US market was down by -0.4% against a tough comparison base. There was positive growth from Espolòn, Aperol and Grand Marnier, mitigating the challenging comparison base effect of Wild Turkey and Campari, as well as weakness in SKYY. Jamaica declined due to temporary supply shortages in rums while underlying trends remain on-track. The other markets in the region grew double digit overall, with strong growth in Brazil (driven by aperitifs and local Brazilian brands) and Canada (thanks to Aperol and Espolòn) offsetting Argentina .
  • Sales inEMEA3 (45% of total Group sales) grew by +2.2%. Italy was down by -4.9% impacted by the high comparison base, particularly for Aperol (Q1 2023 +32.9%), while Campari registered solid growth (+11.8%). Germany grew by +12.4% with continued outperformance driven by Aperol and innovation Sarti Rosa , while non-alcoholicaperitif Crodino also grew alongside Ouzo12. France grew by +4.5% thanks to Aperol, Riccadonna Prosecco, Picon, Trois Rivières and Crodino while the UK registered a softer performance (-3.6%) mainly due to a tough comparison base. Other markets in the region were positive driven by the aperitifs.
  • Sales in Asia Pacific (6% of total Group sales) declined by -20.2%. Australia was down by -18.5%, as the market was impacted by a difficult macro environment, competitive off-premise trends and pressure in brown-spirit ready to drink. Other markets in the region registered an overall decline (-22.6%) ahead of route-to-market changes in China and India , while South Korea was impacted by phasing, a tough trading environment and a difficult comparison base (Q1 2023: +90.9%). Good momentum in Japan and New Zealand after the strengthening of distribution capabilities and investments.

Analysis of organic change by brand:

  • Global Priorities (67% of total Group sales) registered growth of +2.3%. Aperol grew by +6.3% despite the tough overall comparison base (Q1 2023 +43.6%), mainly led by Germany (+25.1%) and the US (+15.0%) followed by France , Austria , Canada and Spain with outperformance also from seeding markets such as Brazil and Mexico , while core Italy was impacted by a very high comparison base. Campari also grew by +6.8%, despite the tough comparison base (Q1 2023 + 23.9%), after a strong performance in Brazil , GTR and Italy , offsetting a softer performance in the US. Espolòn was up +13.2%, after continued double-digit growth in the core US market with growth also accelerating in seeding markets. Wild Turkey (-10.3%) was impacted by shipment declines in core US and Australia , as well as South Korea due to a tough comparison base, despite solid growth from high-marginRussell's Reserve. Grand Marnier grew by +7.9%, while the Jamaican rum portfolio declined by -8.7% overall, as both Appleton Estate and Wray&Nephew Overproof were impacted by tough comparison bases as well as temporary supply shortages. Lastly, SKYY declined by -11.4% after a tough comparison base (Q1 2023 +20.8%).
  • Regional Priorities (17% of total Group sales) declined by -6.9%. Good momentum in Crodino, Cinzano sparkling wine, Mondoro and Aperol Spritzready-to-enjoy as well as the French specialties, particularly Picon, was offset by Forty Creek and The GlenGrant due to tough comparison bases.
  • Local Priorities (7% of total Group sales) declined by -1.6% as positive growth in Ouzo12 and Campari Soda was offset by weakness in Wild Turkey ready-to-drink and SKYYready-to-drink.


Group sales totalled €663.5 million, down by-0.7%on a reported basis or +0.2% in organic terms. The perimeter effect was +0.6% (€3.9 million) driven by agency brands, while the FX effect was -1.4%(€(9.4) million) mainly driven by the devaluation against the Euro of the US Dollar.

3 Includes GTR

Page 2 of 7

Gross profit totalled €381.2 million (57.5% of net sales), down by -2.2% on a reported basis. It grew organically by +0.2% with a neutral effect on margin. The stability of the margin was supported by pricing and positive sales mix which fully offset the expected input cost headwinds.

Advertising and promotion expenses (A&P) were €85.5 million (12.9% of net sales), down by -5.2% in value on a reported basis. A&P decreased organically-1.6%, generating margin accretion of +20 basis points driven by phasing of investments.

CAAP (Contribution after A&P) was €295.7 million (44.6% of net sales), down by-1.3% in value on a reported basis and up +0.7% organically.

Selling, general and administrative expenses (SG&A) totalled €144.3 million (21.7% of net sales), up by +2.8% on a reported basis. This grew organically by +4.2%, generating-80bpsmargin dilution, driven by continuous investments against a softer topline.

EBIT-adjusted was €151.5 million (22.8% on sales), down by -4.9% on a reported basis. It declined organically by-2.3%, generating a margin dilution of -60bps.Excluding the temporary positive phasing effect in Q1 2023, EBIT-adjustedorganic growth would be c. +13% with flat gross margin.

The perimeter effect on EBIT-adjusted was negative by -0.2% (€(0.3) million, -20bps dilutive), due to the net effect of changes in agency brands. The FX effect on EBIT-adjusted was negative by -2.4% (€(3.8) million, -20bps dilutive) mainly due to the Mexican Peso.

Operating adjustments were negative at €(2.2) million, mainly attributable to provisions linked to restructuring initiatives.

EBITDA-adjusted was €181.1 million (27.3% of net sales), down by -1.7% on a reported basis (organically +0.6%).

EBIT (22.5% on net sales) and EBITDA (27.0% on net sales) were at €149.2 million and €178.9 million respectively.

Total financial expenses were €11.9 million, with a decrease of -€4.3 million compared with the first quarter 2023, the combined effect of gross interest expense of €25.8 million (including the incremental interest on the recent convertible bond issued to finance the Courvoisier acquisition), partially offset by interest income of €13.8 million net of other expenses. The average cost of net debt stood at 3.1% (3.3% in the same period of 2023). Exchange gains were €0.2 million (vs. €(3.3) million in Q1 2023).

Group profit before taxation-adjustedwas €147.3 million, up +5.8% vs. the first quarter 2023. Group profit before taxation was €145.0 million, up +8.6%.

Net financial debt at €1,315.3 million as of 31 March 2024 , down €538.1 million vs. December 31st, 2023 (€1,853.5 million) mainly driven by the cash injection from the equity raise and convertible bond carried out in January 2024 to finance the Courvoisier acquisition, partly offset by the increase in gross debt due to the convertible bond (net of the equity component).

Net debt4 to EBITDA-adjusted ratio at 1.8 timesvs. 2.5 times as of December 31 st, 2023. Post closing of the Courvoisier acquisition, net debt to EBITDA-adjusted ratio would be c. 3.5 timesas of 31 March 2024 withpro-formanet debt5incorporating the Enterprise Value of Courvoisier of € 1.2 billion and excluding positive P&L effect of itsfirst-timeconsolidation.


Outlook remains unchanged. In organic terms, the Group expects continued industry outperformance by leveraging its strong brands in growing categories in a normalizing industry environment while macro remains volatile. In terms of profitability, the moderating inflationary environment and agave trends are expected to gradually reflect across P&L from second half of the year, with the pricing effect broadly reflected in the base in the remainder of the year. The phasing of mix across Q2 and Q3 will depend on summer months, especially for the aperitifs and this will also impact the level of brand building investments. The perimeter will reflect the consolidation of Courvoisier from the date of closing with limited impact expected in the first transition year. In themedium-term,we remain confident in continued healthy brand momentum in keybrand-marketcombinations as well as industry outperformance leveraging a strengthened portfolio and geographic exposure, as well as focus on revenue growth management. The Group expects consistent operating margin expansion driven by sales mix,

  1. Net debt as of 31 March 2024 including the effect of the equity raise and convertible bond issue.
  2. Reported last 12 months EBITDA excluding Courvoisier impact/Net debt as of March 31 st 2024 plus Enterprise Value of Courvoisier of €1.2 billion closed on April 30th 2024.

Page 3 of 7

pricing, input cost inflation easing and operational efficiencies, with continuous reinvestment into brand building and marketing & commercial capabilities to fuel organic topline growth.


On April 30th 2024, Campari Group announced the closing of Courvoisier acquisition after the completion of various applicable regulatory processes, including antitrust. The upfront Enterprise Value is confirmed at US$1.20 billion (€1.11 billion) including US$ 410 million of maturing inventory. Should a contractualearn-outbe paid in 2029, the total Enterprise Value is confirmed at US$1.32 billion (€1.22 billion). The integration of the operations and strengthening of the commercial structure in core brand regions has been initiated meanwhile the brand strategic assessment will start. The consolidation effect of this acquisition will be reflected in Campari Group financials from the closing date with limited impact expected in the first transition year.

* * *


The additional financial information for the three months ended March 31st, 2024 is available to the general public on the Company's website (https://www.camparigroup.com/en/page/investors),and by all other means allowed by applicable regulations.


This press release contains certain forward-looking statements relating to the Campari Group . All statements included in this press release concerning activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and involve known and unknown risks, uncertainties and other factors, including, but not limited to, the following: volatility and deterioration of capital and financial markets, changes in general economic conditions, economic growth and other changes in business conditions, changes in government regulation and other economic, business and competitive factors affecting the businesses of Campari Group . Such factors include, but are not limited to: (i) changes in the laws, regulations or policies of the countries where Campari Group operates; (ii) the adoption, both at a global level and in the countries where Campari Group operates, of restrictive public policies that have an impact on the production, distribution, marketing, labelling, importation, price, sale or consumption of alcoholic products; (iii) long-term changes in consumers' preferences and tastes, social or cultural trends resulting in a reduction in the consumption of products of the Campari Group as well as in purchasing patterns and the ability of Campari Group to anticipate these changes in the marketplace; and (iv) increased production costs and volatility of raw materials' prices. Therefore, Campari and its affiliates, directors, advisors, employees and representatives, expressly disclaim any liability whatsoever for such forward-looking statements.

These forward-looking statements speak only as of the date of this document and Campari does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise, except as required

by law. For information on the definition of alternative performance measures used in this presentation, see the paragraph 'Definitions and

reconciliation of the Alternative Performance Measures (APMs or non-GAAP measures) to GAAP measures' of the additional financial information for the three months ended March 31st, 2024.


Campari's management team will host a conference call to present the Group's First Quarter 2024 Results today at 1:00 pm (CET) . To participate via webcast (listen only):

To participate via audio and ask questions, please dial one of the following numbers:

  • from Italy : (+39) 02 802 09 11
  • from abroad: +44 1212 818004

Digital Playback:

A digital playback of the conference call & webcast will be available from today, until May 14th, 2024. To listen to it, please call the following number:

  • (+39) 02 802 09 87

(Access code: 700931#)

(PIN: 931#)

Presentation slides:

The presentation slides available to download from Campari's Investor Relations Home Page at the address:

Page 4 of 7




Investor Relations


Chiara Garavini

Tel. +39 02 6225330

Email: chiara.garavini@campari.com

Gulsevin Tuncay

Tel. +39 02 6225528

Email: gulsevin.tuncay@campari.com

Corporate Communications


Enrico Bocedi

Tel. +39 02 6225680

Email: enrico.bocedi@campari.com





VisitOur Story


Campari Group is a major player in the global spirits industry, with a portfolio of over 50 premium and super premium brands, spreading across Global, Regional and Local priorities. Global Priorities, the Group's key focus, include Aperol, Campari, SKYY, Grand Marnier, Espolòn, Courvoisier, Wild Turkey and Appleton Estate . The Group was founded in 1860 and today is the sixth-largest player worldwide in the premium spirits industry. It has a global distribution reach, trading in over 190 nations around the world with leading positions in Europe and the Americas . Campari Group's growth strategy aims to combine organic growth through strong brand building and external growth via selective acquisitions of brands and businesses.

Headquartered in Milan, Italy , Campari Group operates in 23 production sites worldwide and has its own distribution network in 26 countries. Campari Group employs approximately 4,900 people. The shares of the parent company Davide Campari-Milano N.V. (Reuters CPRI.MI - Bloomberg CPR IM) have been listed on the Italian Stock Exchange since 2001. For more information: http://www.camparigroup.com/en. Please enjoy our brands responsibly.

- Appendix to follow -

Page 5 of 7

Consolidated net sales breakdown by brand cluster for the first quarter 2024


% on Group


% change, of which:








Global Priorities






Regional Priorities






Local Priorities






Rest of portfolio












Consolidated net sales by geographic area for the first quarter 2024


% on Group


% change, of which:














EMEA ( Europe , Middle East and Africa )






Asia Pacific












Page 6 of 7

Consolidated income statement for the first quarter 2024


Q1 2024

Q1 2023


€ million


€ million




Net sales






Cost of goods sold (1)






Gross profit






Advertising and promotional costs






Contribution margin












Result from recurring activities








Other operating income (expenses)






Operating result (EBIT)






Financial income (expenses)

Hyperinflation effects

Profit (loss) related to associates and joint-ventures
















Profit before taxation






Profit before taxation-adjusted






Non-controlling interests before taxation






Group profit before taxation






Group profit before taxation-adjusted







Total depreciation and amortisation


















  1. Includes cost of material, production and logistics costs.
  2. Includes selling, general and administrative costs.

Page 7 of 7


Davide Campari - Milano NV published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 09:20:51 UTC .

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

See our dashboard in action - schedule an demo
Jason Irving
Jason Irving
- SVP Enterprise Solutions -

We offer built-to-order food & beverage coverage for our clients. Contact us for a free consultation.

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our Privacy Policy. We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again.