Davide Campari-milano N.v. · MIL:CPR
Davide Campari-milano — Q1 2024 Earnings Presentation
29 slides from Davide Campari-milano's earnings presentation, May 7, 2024
Slide 1: Results Presentation First Quarter ended 31 March 2024
Results Presentation First Quarter ended 31 March 2024 May 7, 2024
Slide 2: Resilient performance against tough comparison base in a small quarter
Resilient performance in light of the expected tough comparison base, in a small quarter Net Sales > Organic sales +0.2% with solid underlying trends against a tough comparison base €663.5 million due to temporary phasing effect in Q1 2023 ahead of price increases (Q1 2023 +19.6%) (+0.2% organic) -
Slide 3: Growth driven primarily by Global Priority brands
Growth driven primarily by Global Priority brands, largely aperitifs in EMEA and LATAM as well as Espolòn in the US > Total sales with reported change of -0.7% of which organic +0.2%, perimeter impact of +0.6% (or €3.9 million) driven by agency brands and FX effect of -1.4% (or €(9.4) million) mainl
Slide 4: Americas impacted by flattish US shipments, against a tough comparison base
Americas impacted by flattish US shipments, against a tough comparison base Weight Organic in Sales Sales Growth Flattish shipment performance against a tough comparison base (Q1 2023 +23.0% AMERICAS benefitting from a temporary shipment phasing effect). Positive growth from Espolòn, USA 29% -0.4% A
Slide 5: EMEA growth mainly driven by Germany and France
EMEA growth mainly driven by Germany and France more than offsetting a tough comparison base in other core markets Weight Organic in Sales Sales Growth Impact on shipment performance in a small quarter against a high comparative base as expected (Q1 2023 +21.6% due to positive phasing preceding pric
Slide 6: APAC impacted by competitive environment in Australia and route-to-market changes
APAC impacted by tough competitive environment in Australia, as well as route-to- market changes in China and India Weight Organic in Sales Sales Growth ASIA PACIFIC Performance impacted by difficult macro environment, increasingly competitive off- Australia 3% -18.5% premise trends and pressure in
Slide 7: Global Priorities resilient with +2.3% organic growth
Global Priorities resilient with +2.3% organic growth driven mainly by Aperol, Campari and Espolòn Weight in Organic Sales Sales Growth Positive growth despite tough comparison base (Q1 2023 +43.6%) mainly led by Germany (+25.1%) and the US (+15.0%) followed by France, Austria, Canada and GLOBAL PRI
Slide 8: Regional Priorities -6.9%; Local Priorities -1.6% organic growth
Regional Priorities -6.9%; Local Priorities -1.6% organic growth Organic Sales Growth REGIONAL PRIORITIES Sparkling wines, +10.8% Growth in Cinzano sparkling wine, Lallier Champagne and Mondoro offsetting Champagne & weakness in Cinzano vermouth Vermouth 17% Other Whisk(e)y -24.4% Weakness driven by
Slide 9: Aperol: Australian Open Takeover & Full 360 Melbourne activations
Aperol: Australian Open Takeover & Full 360 Melbourne activations 9
Slide 10: Aperol: Continued deseasonalisation across multiple markets
Aperol: Continued deseasonalisation across multiple markets, including world cup events 10
Slide 11: Grand Marnier: Grammys, Superbowl LVIII & NBA All Star after parties
Grand Marnier: The Grammy’s, Superbowl LVIII & NBA All Star after parties 11
Slide 12: Campari: Deepening links with the arts in Spain
Campari: Deepening links with the arts in Spain at GOYA awards & Fotogramas De Plata
Slide 13: Tequila: Global Spirits Masters for Tequila & Mezcal Awards
Tequila: Global Spirits Masters for Tequila & Mezcal Awards > Premium Blanco - GOLD for Cabo Wabo and Espolòn > Ultra Premium Blanco - GOLD for Mayenda > Ultra Premium Reposado - GOLD for Cabo Wabo and Espolòn > Premium Anejo - GOLD for Cabo Wabo > Super-Premium Anejo - GOLD for Espolòn Cristalino >
Slide 14: The Negroni remains #1 most sold cocktail in the world
The Negroni remains #1 most sold cocktail in the world “Liqueurs are utterly tied to cocktails so it’s fitting that the Negroni, the number one classic cocktail in our Cocktail Report supplement, demands the number one liqueur – Campari” (Drinks International Brands report 2024) Aperol Spritz moves
Slide 15: Successful closing of Courvoisier acquisition
Successful closing of Courvoisier acquisition > On 30th of April, Campari Group announced the closing of Courvoisier acquisition after the completion of various applicable regulatory processes, including antitrust > Upfront Enterprise Value confirmed at US$1.20 billion (€1.11 billion) including US$
Slide 16: EBIT-adjusted impacted by reduced operating leverage
EBIT-adjusted impacted by reduced operating leverage in a small quarter with tough comparison base -2.3% Organic EBIT-adj. (-4.9% reported) 23.9% 0 bps +20 bps -80 bps -40bps 22.8% -60 bps organic > EBIT-adj. organic change at -2.3%, EBIT-adj. margin of 22.8% indicating -60bps organic change - Gross
Slide 17: Group pre-tax profit
Group pre-tax profit Q1 2024 Q1 2023 Change € million % sales € million % sales EBIT-adjusted 151.5 22.8% 159.3 23.9% -4.9% Operating adjustments (2.2) -0.3% (6.8) -1.0% -67.4% Operating profit = EBIT 149.2 22.5% 152.5 22.8% -2.1% Financial income (expenses) (11.9) -1.8% (16.1) -2.4% -26.4% Total fi
Slide 18: Net debt reflecting positive impact of cash injection
Net debt reflecting positive impact of cash injection € million 31 March 2024 31 December 2023 Change Short-term cash (debt) 1,226.6 179.1 1,047.4 - Cash and cash equivalents 1,737.9 620.3 1,117.6 - Bonds (300.0) (300.0) - - Bank loans (198.7) (130.6) (68.1) - Others financial assets and liabilities
Slide 19: Conclusion & Outlook
Conclusion & Outlook > Resilient performance overall considering tough comparison bases, in a small quarter. Net sales organic growth c. +6% excluding the temporary phasing effect in Q1 2023, outperforming the industry > Looking at the remainder of the year, outlook remains unchanged - In organic te
Slide 20: Annex
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Slide 21: 2023 net sales by priority following restatement
2023 net sales by priority following restatement Restated 2023 sales by priority EUR m Q1 2023 Q2 2023 Q3 2023 Q4 2023 H1 2023 9M 2023 FY 2023 Global priorities 438.3 531.8 497.3 430.4 970.1 1,467.4 1,897.8 Regional priorities 127.9 138.2 136.2 167.9 266.0 402.2 570.1 Local priorities 46.7 53.8 42.0
Slide 22: 2023 net sales by region following restatement
2023 net sales by region following restatement Restated 2023 sales by region EUR m Q1 2023 Q2 2023 Q3 2023 Q4 2023 H1 2023 9M 2023 FY 2023 Americas 316.8 315.3 326.6 324.0 632.1 958.6 1,282.6 EMEA 299.9 420.5 357.6 327.8 720.4 1,078.0 1,405.8 APAC 51.2 54.1 59.3 65.5 105.4 164.7 230.2 Total 667.9 78
Slide 23: Q1 2024 P&L details
Q1 2024 P&L details Organic Reported Organic Perimeter Forex Q1 2024 Q1 2023 margin change impact impact impact change(3) € million % sales € million % sales % bps % % % Net sales 663.5 100.0% 667.9 100.0% -0.7% - 0.2% 0.6% -1.4% COGS(1) (282.3) -42.5% (278.1) -41.6% 1.5% - 0.2% 1.5% -0.2% Gross pro
Slide 24: Net sales by region & key market; by brand cluster
Net sales by region & key market Q1 2024 Q1 2023 Change of which: % Group % Group €m €m % organic perimeter Forex sales sales Americas 321.4 48.4% 316.8 47.4% 1.4% 1.5% 1.0% -1.1% USA 193.9 29.2% 192.8 28.9% 0.5% -0.4% 2.1% -1.2% Jamaica 34.5 5.2% 38.6 5.8% -10.8% -8.3% - -2.4% Other countries 93.0
Slide 25: Financial debt details
Financial debt details Eurobonds and Term loans composition as of 31 March 2024 Outstanding Outstanding Original As % of Issue Date Maturity Type Currency Coupon Nominal Nominal Amount Tenor Total Amount (LC) (€ million) Apr 5, 2017 Apr-24 Unrated Eurobond EUR 2.165% 150 150 7 years 6% Apr 30, 2019
Slide 26: Exchange rates effects
Exchange rates effects Average exchange rates Period end exchange rate Q1 2024 Q1 2023 change 31 March 2024 31 December 2023 change 1 Euro 1 Euro % 1 Euro 1 Euro % US Dollar 1.086 1.073 -1.2% 1.081 1.105 2.2% Canadian Dollar 1.464 1.451 -0.9% 1.467 1.464 -0.2% Jamaican Dollars 168.687 164.183 -2.7%
Slide 27: Shareholding structure as of 31 March 2024
Shareholding structure as of 31 March 2024 Total Ordinary Shares % of Ordinary Shares Total Special Voting + Special Voting and Special Voting % of Ordinary Special Voting Special Voting Shares A + Special Shareholders Ordinary Shares (1) Shares A+ Special Shares A and Spcial Shares Shares A (2) Sha
Slide 28: 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 29: Thanks.
Thanks. CONTACTS i n v e s t o r. r e l a t i o n s @ c a m p a r i . c o m www.camparigroup.com @GruppoCampari CampariGroup @camparigroup CampariGroup
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