Davide Campari-milano N.v. · MIL:CPR
Davide Campari-milano — FY2024 Earnings Presentation
48 slides from Davide Campari-milano's earnings presentation, Mar 4, 2025
Slide 1: 2024 Results Presentation
2024 Results Presentation 4th of March 2025
Slide 2: Contacts
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 Simon Hunt @camparigroup CampariGroup @camparigroup CampariGroup Chief Executive Officer
Slide 3: Executive Summary
Executive Summary • 2024 marked by macroeconomic and geopolitical volatility simultaneously affecting all regions and leading to impact on consumption patterns and trade including destocking, while the post- Covid rebasing continued. This was exasperated by poor weather conditions • In this challeng
Slide 4: Our topline outperformance continues despite the challenging backdrop
Our topline outperformance continues despite the challenging backdrop Net Sales Evolution 3,500 40% Covid & Post-Covid Pre-Covid CAGR: 5% Period CAGR: 10% 4x growth to €3.1 bln 3,000 26% 30% 2,500 16% 20% €2.5 bln if run-rate of Group Organic 5% organic growth had 11% Growth 8% 9% continued after 20
Slide 5: Resilient growth mainly driven by House of Agave and Aperitifs
Resilient growth mainly driven by House of Agave and Aperitifs 2024 net sales with +5.2% total growth (CAGR vs 2019: +10%) of which +2.4% organic (Q4: +3.4%), +2.7% perimeter impact (€77 million) mainly driven by Courvoisier (€75 million1) and relatively flat FX effect (€3 million) Net Sales Organic
Slide 6: Sell-out and sell-in balanced across main regions; outperformance by key accelerator brands
Across the year, sell-out and sell-in balanced across main regions; solid ongoing performance driven by key accelerator brands US EMEA Outperformance vs Spirits Sector Shipments Campari Group Spirits Sector Spirits Sector Campari Group 2024 Value Growth 2024 Price / Mix EMEA 3% 4% -2% Italy Germany
Slide 7: +4% organic growth in the Americas
+4% organic growth in the Americas with US impacted by soft market backdrop, more than offset by ongoing growth in Jamaica, Brazil and other countries Weight in Organic Sales Growth Sales Q4 FY CAGR ‘19 AMERICAS Flat full year performance in a subdued market context with Q4 impacted by high base (Q4
Slide 8: +3% organic growth in EMEA, catching up in Q4
+3% organic growth in EMEA, catching up in Q4 after a challenging peak season Weight in Organic Sales Growth Sales Q4 FY CAGR ‘19 Stabilized performance in Q4 following a challenging period impacted by poor weather conditions, commercial dispute and wholesalers de-stocking which has now stabilised.
Slide 9: APAC with -6% organic change
APAC with -6% organic change with growth in Q4 offset by prior impact of tough competitive environment in Australia, route-to-market changes and macro trends in the region Weight Organic Sales Growth in Sales Q4 FY CAGR ‘19 ASIA PACIFIC Positive Q4 performance mainly driven by aperitifs during peak
Slide 10: Houses of Brands structure
H O U S E S O F B R A N D S S T R U C T U R E A P E R I T I F S W H I S K E Y S & R U M Aperol | Campari | Sarti Rosa | Crodino | Picon | Cynar | Wild Turkey | Russell’s Reserve | American Honey | The Glen Grant | Campari Soda | Aperol Spritz Wilderness Trail | Appleton Estate | Wray & Nephew | Wild
Slide 11: House of Aperitifs: Solid performance in Q4 across all brands
House of Aperitifs: Solid performance in Q4 across all brands leading to +6% growth in 2024 despite challenging peak season Weight in Organic Sales Growth Sales Q4 FY CAGR ‘19 HOUSE OF APERITIFS Double digit growth in Q4 driven especially via the US, Germany and Italy. Full year growth mainly driven
Slide 12: Aperol deep-dive
Aperol deep-dive Geographic composition: Solid diversification Brand awareness: Ongoing increase and significant room for growth 14% 7% 30% 0% 2% 57 43 60 2% 3% 22% 3% c.84-99 52 13% c.75-98 80 6% 72 20% 51 54 53% 25% 2021 2024 2014 2024 Key EU Market US UK Italy Germany France US UK Austria Others
Slide 13: House of Whiskeys & Rum -6%, House of Agave +10%
House of Whiskeys & Rum -6%, House of Agave +10% driven by fast growing Espolòn Weight in Organic Sales Growth Sales Q4 FY CAGR ‘19 HOUSE OF WHISKEYS & RUM Wild Turkey Ongoing soft performance driven by the core US and Australia offsetting solid growth in Japan and & Russell’s 5% -2% -2% +11% other
Slide 14: Espolòn deep-dive
Espolòn deep-dive Share and growth of international vs US: Diversification accelerating in line with internationalization strategy 19th rank in US 7th rank in US (0.8% market share) (4.2% market share) 300,000 14% 12% 250,000 10% 9% 200,000 8% 8% 7% 150,000 5% 5% 6% 4% 100,000 4% 3% 2% 1% 2% 50,000
Slide 15: House of Cognac & Champagne growth driven by Grand Marnier and Lallier
House of Cognac & Champagne growth mainly driven by Grand Marnier and Lallier with ongoing focus on Courvoisier positioning Weight in Organic Sales Growth Sales Q4 FY CAGR ‘19 HOUSE OF COGNAC & CHAMPAGNE Grand Subdued full year growth mainly driven by core US (+3%) and GTR. Decline in Q4 driven by U
Slide 16: Financial and ESG Review
+ j it / couRVETSIER ‘ A xO Financial and ESG Review
Slide 17: EBIT-adj. -2.5% with margin impacted by planned business investments
EBIT-adj. -2.5% with margin mainly impacted by finalization of planned business investments and muted sales with flat gross margin Net Sales Gross Profit A&P CAAP SG&A EBIT-adj. Organic +2.4% +2.4% +1.1% +2.9% +8.6% -2.5% Growth 40.7 618.7 -5.2 1.5 604.9 -50.7 flat +20bps -120bps -50bps 21.2% 19.7%
Slide 18: P&L impacted by sizeable operating adjustments
P&L impacted by sizeable operating adjustments mainly related to the 3-year cost containment program Annual change • Operating adjustments of €(212.6) million including 2024 results Adjusted Adjustments Reported Adjusted Reported restructuring and reorganization costs of (€(102.6) million) € million
Slide 19: Strong free cash flow
Strong free cash flow 2024 2023 Change Change Total Recurring Total Recurring Total Recurring € million € million € million € million € million % € million % EBITDA 520.0 650.4 (130.3) -20.0% EBITDA-adj. 732.6 728.9 3.7 0.5% Taxes paid & Other 72.4 (27.6) (131.6) (146.6) 204.1 119.0 Taxes paid (85.3
Slide 20: Solid and improving balance sheet indicators
Solid and improving balance sheet indicators following a challenging year and Courvoisier consolidation impact Solid OWC % of net sales 2024-2023 OWC change Decrease in organic OWC of €(78) mln driven by: management of 34.6% like-for-like € (122) mln €(122) mln decline in other inventory via depleti
Slide 21: ESG: Strong track record of continuous improvement
ESG: Strong track record of continuous improvement with a clear roadmap, ambitious targets and focus areas for the future • First time reporting of double materiality assessment in line with CSRD requirements Key 2024 • Becoming signatory to the UN Global Compact in 2024 • S&P Global rating increase
Slide 22: Update on cost containment program and portfolio streamlining
Update on cost containment program and portfolio streamlining Cost Containment Portfolio Program Streamlining • Create efficiency in structure costs leveraging operating model reorganization, delayering, • Streamline brand portfolio via disposal of Description portfolio streamlining and tech infrast
Slide 23: Outlook
#1 best selling liquor #3 best selling mezcal #3 best selling liqueur #1 top trending liquor #10 top trending mezcal #4 bartenders’ choice of spirit Negroni #1 cocktail Other brands: Appleton Estate #4 best selling rum and #4 top trending rum ; Wild Turkey #8 best selling American whiskey and #6 top
Slide 24: Outlook
Outlook • In the context of current low visibility as to the duration of cyclical macro headwinds, we view 2025 as a transition year • Moderate organic full-year topline growth to continue, with an improving trend in H2. The timing of Easter will drive a phasing of shipments leading to a LSD decline
Slide 25: Annex
Annex
Slide 26: EBIT-adjusted margin by region
EBIT-adjusted margin supported by resilient trend in the Americas while EMEA and APAC impacted by planned business investments 2024 margin growth drivers Regional Weight in Group EBIT-adj. Net sales EBIT-adj. Organic bps impact vs 2023 EBIT-adj organic organic margin EBIT-adj. Gross growth growth A&
Slide 27: Group pre-tax profit
Group pre-tax profit 2024 2023 Change € million % sales € million % sales % EBIT-adj. 604.9 19.7 % 618.7 21.2 % (2.2)% Operating adjustments (212.6) (6.9)% (78.5) (2.7)% 170.7 % Restructuring and reorganization costs (102.6) (3.3)% (19.6) (0.7)% 423.3% Impairment of tangible assets, brands and busin
Slide 28: Group net profit-adjusted
Group net profit-adjusted 2024 2023 Change € million Reported Adjustments Adjusted Reported Adjustments Adjusted Reported Adjusted Pre-tax profit 255.6 (267.2) 522.8 466.5 (77.7) 544.2 (45.2)% (3.9)% (1) Taxation (63.0) 92.8 (155.7) (134.0) 17.7 (151.8) (53.0)% 2.6 % Net profit 192.6 (174.4) 367.0 3
Slide 29: Operating Working Capital increase largely driven by Courvoisier
Operating Working Capital increase largely driven by Courvoisier within perimeter, improvement on a like-for-like basis Total change: €350.6 million € million % on net sales 37.9% 34.6% 47.4% rolling • OWC as % of net sales at 34.6% as of 2024 on a like-for-like basis (excluding Courvoisier) vs 37.9
Slide 30: Continued CAPEX investments to support business growth
Continued CAPEX investments to support business growth 2024 2023 2022 2025 Guidance € million € million € million € million Total CAPEX 440.5 295.7 213.3 Maintenance CAPEX 139.8 112.4 107.5 c.4% of sales % of sales 4.6% 3.9% 4.0% Extraordinary CAPEX 300.7 183.3 105.8 c. €200 million New HQ acquisiti
Slide 31: Net debt increase mainly related to Courvoisier acquisition
Net debt increase mainly related to Courvoisier acquisition with FCF more than offsetting other impacts 3.2x (41.2) 2.5x (577.1) € million 173.0 (78.1) Total: €(523.4) million (2,376.9) (1,853.5) Net debt at FCF Dividend Net Impact of Other including fx Net debt at 31 December 2023 acquisition and p
Slide 32: P&L restatements related to Houses of Brands operating model
P&L restatements related to implementation of the Houses of Brands operating model House of Whiskeys House of Cognac & P&L after 2024 P&L published House of Aperitifs & Rum House of Agave Champagne Local brands Reclassification reclassification € million € million € million € million € million € mil
Slide 33: Net sales by region & key market
Net sales by region & key market 2024 2023 change % of which: Q4 2024 € million % sales € million % sales Total Organic Perimeter FX Organic AMERICAS 1,388.5 45.2% 1,282.6 43.9 % 8.3% 3.6% 3.7% 0.9 % - USA 860.2 28.0% 813.1 27.9% 5.8% - 5.8% - -6.5% Jamaica 148.2 4.8% 151.0 5.2% -1.8% 1.1% -1.4% -1.
Slide 34: Net sales restated by Houses of Brands
Net sales restated by Houses of Brands Restated 2024 sales by Houses of Brands € million Q1 2024 Q2 2024 Q3 2024 Q4 2024 H1 2024 9M 2024 2024 House of Aperitifs 294.1 416.3 333.7 282.6 710.4 1,044.1 1,326.6 House of Whiskeys & Rum 100.8 117.4 101.4 117.9 218.2 319.6 437.5 House of Agave 62.6 80.7 78
Slide 35: EBIT-adjusted by region
EBIT-adjusted by region 2024 2023 change % of which: € million % sales € million % sales Total Organic Perimeter FX AMERICAS Net sales 1,388.5 100.0% 1,282.6 100.0% 8.3% 3.6% 3.7% 0.9% Gross profit 753.8 54.3% 702.8 54.8% 7.3% 4.2% 1.7% 1.4% A&P (243.3) (17.5)% (233.3) (18.2)% 4.3% 1.2% 2.5% 0.6% SG
Slide 36: 2024 Consolidated P&L
2024 Consolidated P&L change % of which: Organic margin 2024 2023 Total change Organic Perimeter FX change € million % sales € million % sales % bps % % % Net sales 3,069.7 100.0% 2,918.6 100.0% 5.2% 0 2.4% 2.7% 0.1% COGS (1,303.0) (42.4)% (1,218.5) (41.7)% 6.9% 0 2.4% 4.6% -0.1% Gross profit 1,766.
Slide 37: Q4 2024 Consolidated P&L
Q4 2024 Consolidated P&L change % of which: Organic margin Q4 2024 Q4 2023 Total change Organic Perimeter FX change € million % sales € million % sales % bps % % % Net sales 792.7 100.0% 717.3 100.0% 10.5% 3.4% 4.3% 2.8% COGS (358.9) (45.3)% (320.3) (44.7)% 12.1% +40 2.5% 6.5% 3.0% Gross profit 433.
Slide 38: EPS adjusted: basic and diluted
EPS adjusted: basic and diluted 2024 2023 Reported Adjusted Reported Adjusted € million € million € million € million Group net profit-adj. € million 376.0 390.4 Group net profit 201.6 330.5 Weighted average of ordinary share outstanding number 1,200,346,949 1,127,727,622 Basic earnings per share €
Slide 39: Consolidated balance sheet (1 of 2)
Consolidated balance sheet (1 of 2) Assets 31 December 2024 31 December 2023 Change € million € million € million ASSETS Non-current assets Property, plant and equipment 1,421.3 964.5 456.8 Right of use assets 66.1 65.4 0.7 Biological assets 30.5 22.8 7.7 Goodwill 2,420.1 1,850.8 569.3 Brands 1,314.
Slide 40: Consolidated balance sheet (2 of 2)
Consolidated balance sheet (2 of 2) Liabilities and shareholders’ equity 31 December 2024 31 December 2023 Change € million € million € million LIABILITIES AND SHAREHOLDERS' EQUITY Shareholders' equity - Share capital 36.8 36.1 0.7 - Reserves 3,763.2 2,889.1 874.2 Issued capital and reserves attribu
Slide 41: Reclassified Cash flow statement
Reclassified Cash flow statement 2024 2023 Change € million € million € million EBITDA 520.0 650.4 (130.3) (1) Income taxes and other adjustments 72.4 (131.6) 204.1 Cash flow from operating activities before changes in working capital 592.5 518.7 73.7 Changes in net operating working capital 78.0 (3
Slide 42: Impact of operating adjustments on P&L and free cash flow
Impact of operating adjustments on P&L and free cash flow P&L impact of adjustments including tax impact (€ million) 93 (267) (107) (174) • Impact on Free Cash Flow deriving from the cash portion of the P&L adjustments and Patent box (67) amounting to €(67) million Adjutsments Tax effect Adjutsments
Slide 43: Operating working capital
Operating working capital 31 December 2024 31 December 2023 Total change Organic Perimeter FX € million % sales € million % sales € million € million € million € million Trade receivables 425.8 13.9% 374.3 12.8% 51.6 54.5 3.4 (6.4) Total inventories, of which: 1,703.1 55.5% 1,252.5 42.9% 450.7 (6.5)
Slide 44: Financial debt
Financial debt Eurobonds and Term loans composition as of 31 December 2024 Outstanding nominal Outstanding nominal Issue date Maturity Type Currency Coupon Original tenor As % of total amount (LC million) amount (€ million) Oct 6, 2020 Oct-27 Unrated Eurobond EUR 1.25% 550 550 7 years 22.0% Dec 6, 2
Slide 45: Exchange rates effects
Exchange rates effects Average exchange rates Period end exchange rate 2024 2023 Change 31 December 2024 31 December 2023 Change US Dollar 1.082 1.082 - 1.039 1.105 6.4% Canadian Dollar 1.482 1.460 (1.5)% 1.495 1.464 (2.0)% Jamaican Dollars 169.267 166.714 (1.5)% 161.513 170.623 5.6% Mexican Peso 19
Slide 46: Shareholding structure
Shareholding structure As of 31 December 2024 Total Ordinary Total Special Voting % of Ordinary Shares and Shares + Special Voting (1) Special Voting Special Voting Shares A + Special Special Voting Shares A Shareholders Ordinary Shares % of Ordinary Shares Shares A+ Special Shares A (2) Shares B Vo
Slide 47: 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 48: 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 @camparigroup CampariGroup @camparigroup CampariGroup