Davide Campari-milano N.v. · MIL:CPR
Davide Campari-milano — 9M 2021 Earnings Presentation
40 slides from Davide Campari-milano's earnings presentation, Oct 26, 2021
Slide 1: Nine Months Results to 30 September 2021
October 26, 2021 Nine Months Results to 30 September 2021 Investor Presentation
Slide 2: Table of contents
Table of contents Results Summary Sales Results Consolidated P&L Net Financial Debt Marketing Initatives & business developments Conclusion & Outlook Annex 2
Slide 3: Strong business performance with double-digit growth across all indicators vs both 2020 and 2019
Strong business performance with double-digit growth across all indicators vs both 2020 and 2019 9M 2021 vs. 9M 2020 Q3 2021 9M 2021 Q3 2021 Organic change Organic change Reported Organic Organic € million vs. 9M 2019 vs. Q3 2019 change change change Net sales 1,575.7 +22.9% +27.3% +12.8% +24.0% +27
Slide 4: Table of contents
Table of contents Results Summary Sales Results Consolidated P&L Net Financial Debt Marketing Initatives & business developments Conclusion & Outlook Annex 4
Slide 5: Double-digit sales growth vs. 2020 & 2019 across all region and brand clusters
Double-digit sales growth vs. 2020 & 2019 across all region and brand clusters: continued strong momentum in the on-premise, coupled with sustained home consumption 9M 2021 Net sales Organic Performance and Breakdown By Region Organic sales growth vs. 9M 2020 Organic sales growth vs. 9M 2019 By Bran
Slide 6: Healthy brand momentum continues in the off-premise despite on-premise reopening
Healthy brand momentum continues in the off-premise despite on-premise reopening Consumer comfort with home mixology driving solid brand momentum visible by 2yr stack (1) (1) Sell-out data source: US: Nielsen data XAOC+Liquor+Conv YTD W/E 24 25/09/2021; Italy: IRI Liquid Data - Hypermarkets + Superm
Slide 7: Americas +28.0% thanks to strong on-premise momentum combined with sustained home consumption
Americas (1) +28.0% thanks to strong on-premise momentum combined with sustained home consumption Change Change vs. 9M 2020 vs. 9M 2019 organic organic USA 23.4% 23.7% Canada 10.7% 22.8% Jamaica 37.4% 24.7% Other countries 53.7% 18.9% Americas 28.0% 22.9% Perimeter 0.0% Forex -7.1% Organic growth by
Slide 8: SEMEA +31.9% largely driven by the on-premise recovery
SEMEA (1) +31.9% largely driven by the on-premise recovery Change Change vs. 9M 2020 vs. 9M 2019 Organic organic Italy 29.6% 14.6% France 21.9% 103.8% Other countries 62.6% -14.3% Southern Europe, Middle East & Africa 31.9% 16.4% Perimeter 1.6% Forex 0.1% Total Change 33.5% Organic growth by key mar
Slide 9: NCEE +19.8% positive momentum across markets and channels
NCEE (1) +19.8% positive momentum across markets and channels Change Change vs. 9M 2020 vs. 9M 2019 organic organic Germany 10.1% 22.7% United Kingdom 42.5% 74.9% Russia 32.2% 53.0% Other countries 20.9% 26.6% North, Central & Eastern Europe 19.8% 32.8% Perimeter -8.8% Forex -1.1% Total Change 9.8%
Slide 10: APAC +30.4% continued growth helped by shipment recovery
APAC (1) +30.4% continued growth helped also by shipment recovery due to route-to-market changes in Asia Change Change vs. 9M 2020 vs. 9M 2019 organic organic Australia 5.7% 27.6% Other countries 120.2% 55.9% Asia Pacific 30.4% 36.5% Perimeter 0.8% Forex 4.6% Total Change 35.8% Organic growth by key
Slide 11: Global Priorities sales review: Aperitifs
Global Priorities sales review: Aperitifs Organic sales growth vs. 9M 2020 Organic sales growth vs. 9M 2019 > Overall very positive performance (+29.9%) as the brand renews recruitment of consumers in the on-premise channel and continues to benefit from sustained home consumption. Core markets such
Slide 12: Aperitifs confirmed strength vs. 2019 unaffected base
Aperitifs confirmed strength vs. 2019 unaffected base Key markets registered strong growth in both shipment and consumption data vs. 9M 2019 (2) (2) (1) Sell-out Source: US: Nielsen data XAOC+Liquor+Conv YTD W/E 38 25/09/2021; Italy: IRI Liquid Data - Hypermarkets + Supermarket + Proximity stores/Su
Slide 13: Global Priorities sales review
Global Priorities sales review Organic sales growth vs. 9M 2020 Organic sales growth vs. 9M 2019 > Wild Turkey: very strong growth against an easy comparison base, driven by the core US market, thanks to solid category momentum. Australia was flattish due to tough comparison base (+28.0% in 9M 2020)
Slide 14: Regional Priorities sales review
Regional Priorities sales review Organic sales growth vs. 9M 2020 Organic sales growth vs. 9M 2019 > Espolòn: strong growth driven by the core US market. Seeding markets also grew, such as Australia, Canada, Italy and Russia > Bulldog: positive performance against an easy comparison base, driven by
Slide 15: Local Priorities and other brands sales review
Local Priorities and other brands sales review Organic sales growth vs. 9M 2020 Organic sales growth vs. 9M 2019 > Campari Soda: positive performance driven by home CAMPARI SODA 40.0% consumption in core Italy thanks to its cocktail-to-go format 25.5% as well as on-premise reopening > Crodino: posit
Slide 16: Table of contents
Table of contents Results Summary Sales Results Consolidated P&L Net Financial Debt Marketing Initatives & business developments Conclusion & Outlook Annex 16
Slide 17: EBIT adjusted
EBIT adjusted Change vs. 9M 2020 vs. 9M 2019 Q3 2021 organic change Reported Organic Perimeter Forex Organic 9M 2021 9M 2020 vs. Q3 2020 vs. Q3 2019 change change effect impact change € million % of sales € million % of sales % % % % % % % Net Sales 1,575.7 100.0% 1,282.5 100.0% 22.9% 27.3% -1.5% -3
Slide 18: EBIT adjusted
EBIT adjusted > Gross Profit: on a reported basis up +26.2% in value, +160 bps accretion • Organic growth of +30.3%, stronger than topline growth, leading to +140 bps margin accretion, against a favorable comparison base. Such margin expansion accelerated in Q3, driven by solid mix thanks to outperf
Slide 19: Profit before tax
Profit before tax 9M 2021 9M 2020 Reported change €million % of sales €million % of sales % Financial income/(charge) breakdown: EBIT adjusted 359.8 22.8% 248.5 19.4% 44.8% 9M 2021 9M 2020 Operating adjustments (9.7) -0.6% (48.3) -3.8% - Operating profit = EBIT 350.1 22.2% 200.3 15.6% 74.8% Interest
Slide 20: Table of contents
Table of contents Results Summary Sales Results Consolidated P&L Net Financial Debt Marketing Initatives & business developments Conclusion & Outlook Annex 20
Slide 21: Net debt reduction thanks to positive business performance
Net debt reduction thanks to positive business performance Δ 30 September 2021 vs. € million 30 September 2021 31 December 2020 31 December 2020 Short-term cash/(debt) (A) 480.8 276.6 204.2 - Cash and cash equivalents 838.3 548.1 290.3 - Bonds (50.0) 0.0 (50.0) - Bank loans (283.0) (244.3) (38.7) -
Slide 22: Table of contents
Table of contents Results Summary Sales Results Consolidated P&L Net Financial Debt Marketing Initatives & business developments Conclusion & Outlook Annex 22
Slide 23: Campari: Negroni week & Cinema
Campari: Negroni week & Cinema Campari’s bond with Cinema keeps getting stronger: in Q3 the brand launched Campari Red Diaries 2021 Fellini Forward and sponsored some of the best film festivals around the world: Red Diaries ‘Fellini Forward’ Launch at Venice Exclusive sponsor of 78th Venice Film Fes
Slide 24: Aperol: back to conviviality & spreading the orange wave
Aperol: back to conviviality & spreading the orange wave ‘Together We Can Cheer’ live city activations and Aperol Spritz Picnic & Pool areas across 6 key cities in Germany Aperol Spritz at the Palo Fest in Barcelona recruitment in the south of Italy (Bari, Palermo) Aperil Spritz immersive takeover A
Slide 25: Terrazza Aperol – Grand opening!
Terrazza Aperol – Grand opening! In September 2021, The Terrazza Aperol opened in heart of Venice (Campo Santo Stefano), the first directly managed Aperol Flagship. This initiative is part of Campari Group’s activities to create brand houses for its iconic brands and will enable the Group to establi
Slide 26: Wild Turkey: Trust your spirit
Wild Turkey: Trust your spirit Trust Your Spirit campaign featuring creative director Matthew McConaughey and introducing the brand’s new tagline, an inspired double entendre channeling the uncompromising spirit of Wild Turkey’s Master Distiller Jimmy Russell Watch the new TVC here: https://www.yout
Slide 27: The GlenGrant 60 year old anniversary edition: Grand Launch
The GlenGrant 60 year old anniversary edition: Grand Launch The launch took place in the newly opened flagship Rolls Royce showroom in Mayfair, London, with over 100 high profile guests. The GlenGrant ‘Making of’ films were played throughout the showroom while guests were invited to try the 12yo, 15
Slide 28: Table of contents
Table of contents Results Summary Sales Results Consolidated P&L Net Financial Debt Marketing Initatives & business developments Conclusion & Outlook Annex 28
Slide 29: Conclusion and Outlook
Conclusion and Outlook > Positive business momentum continued in the key summer season, driven by sustained home consumption and revenge conviviality in the on-premise channel, boosted also by favourable weather conditions in selective key on-premise markets > Looking at the remainder of the year: >
Slide 30: Table of contents
Table of contents Results Summary Sales Results Consolidated P&L Net Financial Debt Marketing Initatives & business developments Conclusion & Outlook Annex 30
Slide 31: Annex
Annex – 1 Net sales by region and key market Annex – 2 Net sales by brand cluster Annex – 3 9M 2021 P&L Annex – 4 Q3 2021 P&L Annex – 5 Financial debt details Annex – 6 Exchange rates effects 31
Slide 32: Net sales by region & key market
Annex - 1 Net sales by region & key market Consolidated Net sales by region 9M 2021 vs. 9M 2021 9M 2020 Change of which: Q3 2021 9M 2019 €m % €m % % organic perimeter forex organic Organic Americas 667.9 42.4% 552.2 43.1% 20.9% 28.0% 0.0% -7.1% 16.6% 22.9% Southern Europe, Middle East & Africa 465.6
Slide 33: Net sales by region & key market
Annex - 1 Net sales by region & key market Southern Europe, Middle East & Africa by market 9M 2021 vs. 9M 2021 9M 2020 Change of which: Q3 2021 9M 2019 €m % €m % % organic perimeter forex organic Organic Italy 305.6 65.6% 235.7 67.6% 29.7% 29.6% 0.1% 0.0% 1.3% 14.6% France 92.2 19.8% 72.1 20.7% 27.9
Slide 34: Net sales by brand cluster
Annex - 2 Net sales by brand cluster Consolidated Net sales by brand cluster 9M 2021 vs. 9M 2021 9M 2020 Change of which: Q3 2021 9M 2019 €m % €m % % organic perimeter forex organic Organic Global Priorities 922.2 58.5% 745.4 58.1% 23.7% 27.5% 0.0% -3.8% 15.0% 24.0% Regional Priorities 272.4 17.3% 2
Slide 35: 9M 2021 Consolidated P&L
Annex - 3 9M 2021 Consolidated P&L 9M 2021 Organic margin Reported Perimeter Forex 9M 2021 9M 2020 accretion/ Organic change change effect impact (dilution) € million % of sales € million % of sales % (bps) (3) % % % Net Sales 1,575.7 100.0% 1282.5 100.0% 22.9% 27.3% -1.5% -3.0% (1) COGS (614.5) -39
Slide 36: Q3 2021 Consolidated P&L
Annex - 4 Q3 2021 Consolidated P&L Reported Organic Perimeter Forex Q3 2021 Q3 2020 change change effect impact € million % of sales € million % of sales % % % % Net Sales 574.8 100.0% 513.8 100.0% 11.9% 12.8% -1.9% 1.0% (1) COGS (217.2) -37.8% (205.2) -39.9% 5.9% 8.0% -4.3% 2.2% Gross Profit 357.6
Slide 37: Financial debt details
Annex - 5 Financial debt details Eurobonds and Term loan composition as of 30 September 2021 Outstanding As % of Issue date Maturity Type Currency Coupon Amount Original tenor total (€ million) Apr 5, 2017 Apr-22 Unrated Eurobond EUR 1.768% 50 5 years 4% Apr 5, 2017 Apr-24 Unrated Eurobond EUR 2.165
Slide 38: Exchange rates effects
Annex - 6 Exchange rates effects Average exchange rate Period end exchange rate change 9M 2021 vs change 30 September 2021 9M 2021 9M 2020 30 September 2021 31 December 2020 9M 2020 vs 31 December 2020 : 1 Euro : 1 Euro % : 1 Euro : 1 Euro % US Dollar 1.197 1.124 -6.1% 1.158 1.227 6.0% Canadian Doll
Slide 39: Disclaimer
Disclaimer This document contains forward-looking statements that relate to future events and future operating, economic and financial results of Campari Group. By their nature, forward-looking statements involve risk and uncertainty because they depend on the occurrence of future events and circums
Slide 40: Thanks.
Thanks. CONTACTS i n ve s t o r. r e l a t i o n s @ c a m p a r i . c o m
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