Davide Campari-Milano N.V. · MIL:CPR
Davide Campari-Milano — Q1 2023 Earnings Presentation
27 slides from Davide Campari-Milano's earnings presentation, May 2, 2023
Slide 1: Results Presentation First quarter ended 31 March 2023
Results Presentation First quarter ended 31 March 2023 May 2, 2023
Slide 2: Very solid start to the year in a small quarter
Very solid start to the year in a small quarter > Continued strong organic sales performance +19.6% Organic Sales • driven by aperitifs, tequila and bourbon thanks to solid brand momentum in a (+24.9% reported) resilient consumer environment, particularly in the on-premise • benefitting from full ef
Slide 3: Good momentum across all regions, with high-margin aperitifs outperforming
Good momentum across all regions, with high-margin aperitifs outperforming Q1 2023 net sales Organic Performance and Weight Breakdown AMERICAS 19.5% GLOBAL PRIORITIES 22.0% SEMEA 23.5% REGIONAL PRIORITIES 27.3% NCEE 16.0% LOCAL PRIORITIES 3.8% APAC 14.5% Others ; 3% Rest Of Portfolio ; 8% Australia
Slide 4: Q1 2023 net sales organic performance by key market
Q1 2023 net sales organic performance by key market AMERICAS Organic Sales Growth by Key Market • Very strong start to the year in the US thanks to positive performance of core Espolòn USA 23.0% (+66.9%), Wild Turkey bourbon (+18.9%) as well as the aperitifs Aperol (+153.6%) and Campari (+72.6%). Gr
Slide 5: Q1 2023 net sales organic performance by key market
Q1 2023 net sales organic performance by key market Organic Sales Growth by Key Market NCEE • Strong start to the year in Germany as our brand portfolio momentum remains solid, benefitting also from Easter calendar shift. Core Aperol grew +15.9%, alongside Ouzo 12 GERMANY 11.1% (+15.2%) while Aperol
Slide 6: Global priorities net sales grew +22.0% organically
Global priorities net sales grew +22.0% organically GLOBAL PRIORITIES > Aperol: strong momentum driven by double-digit growth in core Italy, APEROL 43.6% Germany, France, Spain, the UK as well as triple-digit growth in core US and 58% GTR, benefitting from resilient consumer environment, particularl
Slide 7: Regional priorities net sales grew +27.3% organically
Regional priorities net sales grew +27.3% organically REGIONAL PRIORITIES 62.4% > Espolòn: very strong momentum in the core US market (+66.9%), driven by ESPOLON consumer demand 25% > Sparkling Wine & vermouth: overall positive performance thanks to growth in SPARKLING 7.5% Germany, Spain, the US as
Slide 8: Local priorities net sales grew +3.8% organically
Local priorities net sales grew +3.8% organically LOCAL PRIORITIES > Campari Soda: strong performance driven by core Italy 9% CAMPARI SODA 6.5% > Wild Turkey RTD: slight weakness in core Australia due to shipment phasing -1.3% WILD TURKEY RTD > X-Rated: continued positive growth in core South Korea
Slide 9: Hot Brands award winners
THREESGREERS TO THE 2022 HOT BRANDS AWARD WINNERS TOASTING LIFE TOGETHER #1 BESTSELLING LIQUEUR #1 TOP TRENDING LIQUEUR
Slide 10: Coachella Valley Music and Arts festival - Indio, California
Coachella Valley Music and Arts festival - Indio, California 10
Slide 11: The Glen Grant unveils new 21-Year-Old Single Malt in China
The Glen Grant Unveils New 21- Year-Old Single Malt Scotch Whisky with special RARE launch in China 11
Slide 12: Appleton Estate boutique at Sangster International Airport
Campari Group and Dufry reveal first Appleton Estate boutique at Sangster International Airport, Montego Bay, Jamaica 12
Slide 13: Campari Group launch Mayenda Tequila
Campari Group launch Mayenda Tequila: a super- premium 100% Agave Azul 13
Slide 14: Financial Review
FINANCIAL REVIEW 14 (1) Includes Agency brands & Co-packing 5%; Rest of own brands 4%
Slide 15: Double-digit EBIT-adjusted organic growth with strong margin expansion
Double-digit EBIT-adjusted organic growth with strong margin expansion +32.0% Organic EBIT-adj +110bps +60bps +30bps +40bps €159.3 (+39.4% reported) 23.9% 21.4% +220bps organic (1) > EBIT-adj. organic growth of +32.0%, +220bps organic margin accretion: - gross margin increase of +20.5%, +40bps margi
Slide 16: Group profit before taxation grew double digits
Group profit before taxation grew double digits Reported Q1 2023 Q1 2022 change Financial income/(charge) breakdown: € million % sales € million % sales % Operating adjustments (6.8) -1.0% (4.7) -0.9% 47.0% Financial income/(expenses) Operating profit = EBIT 152.5 22.8% 109.6 20.5% 39.1% Q1 2023 Q1
Slide 17: Net debt remains broadly unchanged
Net debt remains broadly unchanged Change 31 March 2023 vs € million 31 March 2023 31 December 2022 31 December 2022 Short-term cash/(debt) 245.4 321.4 (75.9) - Cash and cash equivalents 377.1 435.4 (58.3) - Bank loans (124.0) (107.0) (17.1) - Others financial assets and liabilities (incl. leases) (
Slide 18: New route-to-market developments in APAC
New route-to-market developments in APAC > The Group continues to pursue its growth strategy in Asia Pacific, further strengthening its route-to-market capabilities and enhancing its brand focus in Japan and New Zealand by anticipating call options exercises • As of March 2023, the Group acquired th
Slide 19: ESG targets update: more ambitious environmental commitment
ESG targets update: more ambitious environmental commitment thanks to solid progress Following a very positive progression that the Group made in 2022 to its environmental commitments, more challenging medium and long-term environmental targets have been set, in particular, for emissions and water u
Slide 20: Outlook
Outlook > Looking at the remainder of the year > Full year guidance of flat organic EBIT-adj margin in 2023 (1) remains confirmed in the current volatile macro-environment • The positive business momentum across key brand-market combinations is expected to continue thanks to strong brand equity and
Slide 21: Annex
Annex
Slide 22: Annex contents
Annex – 1 Q1 2023 P&L Annex – 2 Net sales by region, key market & brand cluster Annex – 3 Financial debt details Annex – 4 Exchange rates effects 22
Slide 23: Q1 2023 P&L details
Q1 2023 P&L details Organic margin Reported Organic Perimeter Q1 2023 Q1 2022 accretion Forex impact change change effect (dilution) (3) € million % sales € million % sales % bps % % % Net sales 667.9 100.0% 534.8 100.0% 24.9% 19.6% 2.0% 3.3% (1) COGS (278.1) -41.6% (223.2) -41.7% 24.6% 40 18.4% 2.3
Slide 24: Net sales by region & key market
Net sales by region & key market Q1 2023 Q1 2022 Change of which: % Group % Group €m €m % organic perimeter forex sales sales Americas 316.8 47.4% 247.5 46.3% 28.0% 19.5% 1.7% 6.8% USA 192.8 28.9% 146.7 27.4% 31.5% 23.0% 2.8% 5.7% Jamaica 38.6 5.8% 30.9 5.8% 24.9% 17.9% - 7.0% Other countries 85.3 1
Slide 25: Financial debt details
Financial debt details Eurobonds and Term loan composition as of 31 March 2023 Outstanding Outstanding Original As % of Issue date Maturity Type Currency Coupon Amount Amount (LC) tenor total (€ million) Apr 5, 2017 Apr-24 Unrated Eurobond EUR 2.165% 150 150 7 years 10% Apr 30, 2019 Apr-24 Unrated E
Slide 26: Exchange rates effects
Exchange rates effects Average exchange rates Period end exchange rate change 31 March change Q1 2023 vs Q1 2023 Q1 2022 31 March 2023 31 December 2022 2023 vs 31 Q1 2022 December 2022 1 Euro 1 Euro % 1 Euro 1 Euro % US Dollar 1.073 1.123 4.6% 1.088 1.067 -1.9% Canadian Dollar 1.451 1.422 -2.0% 1.47
Slide 27: Thanks.
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
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