Davide Campari-milano N.v. · MIL:CPR
Davide Campari-milano — H1 2023 Earnings Presentation
35 slides from Davide Campari-milano's earnings presentation, Jul 26, 2023
Slide 1: Results Presentation First Half Results ended 30 June 2023
Results Presentation First Half Results ended 30 June 2023 July 26, 2023
Slide 2: Very positive first half results with solid brand momentum continuing in the second quarter
Very positive first half results with solid brand momentum continuing in the second quarter +14.2% > Strong organic sales growth of +14.2% in the first half (+10.1% in Q2): Organic Sales • solid brand momentum continued in the second quarter, in particular, aperitifs, tequila (+16.0% reported) and p
Slide 3: Solid growth across all regions, with aperitifs, tequila and premium bourbon outperforming
Solid growth across all regions, with aperitifs, tequila and premium bourbon outperforming H1 2023 Net Sales Organic Performance and Weight Breakdown AMERICAS 10.6% GLOBAL PRIORITIES 15.0% SEMEA 16.6% REGIONAL PRIORITIES 16.7% NCEE 14.5% LOCAL PRIORITIES 8.0% APAC 26.2% Others; 3% Rest Of Portfolio,
Slide 4: H1 2023 net sales organic performance by key market
H1 2023 net sales organic performance by key market AMERICAS Organic Sales Growth by Key Market • Very positive overall growth in the US with Q2 shipments up +3.3% (vs. Q2 depletion of +16.3%), reflecting the expected shipment phasing reversal from Q1 and USA 11.7% destocking in Grand Marnier. The p
Slide 5: H1 2023 net sales organic performance by key market
H1 2023 net sales organic performance by key market Organic Sales Growth by Key Market NCEE • Underlying momentum in Germany remains solid with an acceleration in Q2 (+19.3%), largely driven by the aperitif portfolio, including Aperol, Aperol Spritz RTE, GERMANY 16.4% Campari, all growing double dig
Slide 6: Global priorities net sales grew +15.0% organically
Global priorities net sales grew +15.0% organically GLOBAL PRIORITIES > Aperol: strong momentum, boosted also by positive pricing, driven by core APEROL 32.4% US (+122.5%), Italy (+18.0%), Germany (+22.2%) and France (+27.5%). The 59% UK, Spain, Canada, Australia as well as other European markets al
Slide 7: Regional priorities net sales grew +16.7% organically
Regional priorities net sales grew +16.7% organically REGIONAL PRIORITIES 43.4% > Espolòn: continued momentum in the core US (Q2 +30.8%) as the ESPOLON brand continues to attract consumers and gain share 24% > Sparkling Wine & vermouth: slightly positive thanks to good momentum SPARKLING WINE & VERM
Slide 8: Local priorities net sales grew +8.0% organically
Local priorities net sales grew +8.0% organically LOCAL PRIORITIES CAMPARI 10.6% > Campari Soda: strong performance mainly driven by pricing in SODA core Italy 9% WILD TURKEY 3.9% > Wild Turkey ready-to-drink: positive performance driven by the RTD recovery in core Australia in Q2 X-RATED 2.6% > X-R
Slide 9: Campari lights up the Milanese sky with drone show
Campari lights up the Milanese sky with a never seen before show of illuminated drones for new bottle launch Youtube link: Milano, House of Campari – Capitolo quinto – Drone Show Extended - 9
Slide 10: Campari celebrates creations at 76th Festival de Cannes
Campari celebrates unforgettable creations at 76th Festival de Cannes 10
Slide 11: Appleton Estate Launches "Land on the Extraordinary"
Appleton Estate Launches "Land on the Extraordinary“: exploring the brand’s incomparable rum heritage, watch here: Appleton Estate 8yo: Land on the Extraordinary 11
Slide 12: Aperol Spritz Summer Season activations
Aperol Spritz Summer Season: orange wave well underway to the sound of music Aperidisco: Battersea, London Aperol Island: Primavera Festival, Madrid Aperol Piazza: Heart of Vienna Aperol Rock: Rockin’1000, Rome 12
Slide 13: SKYY Las Vegas: EDC Festival Pool Party Takeover
SKYY Las Vegas: EDC Festival Pool Party(s) Takeover and SKYY Cove pop-up 13
Slide 14: Financial Review
FINANCIAL REVIEW 14
Slide 15: Double-digit EBIT-adjusted organic growth with +20bps organic margin expansion
Double-digit EBIT-adjusted organic growth with +20bps organic margin expansion +15.1% Organic EBIT-adj (50bps) +50bps €159.3+20bps (30bps) (+15.7% reported) 24.7% 24.7% (1) +20bps organic > EBIT-adj. organic growth of +15.1%, +20bps organic margin accretion (Q2: +5.3%, -120bps dilution): - gross pro
Slide 16: Double-digit EBIT organic growth mostly driven by SEMEA
Double-digit EBIT (1) organic growth mostly driven by SEMEA Margin growth drivers EBIT REGIONAL WEIGHT (% of Group EBIT) Change vs EBIT Net sales EBIT organic EBIT margin org. Gross margin org. A&P org. SG&A organic H1 2022 margin organic growth growth progression progression progression progression
Slide 17: Profit before taxation
Profit before taxation total H1 2023 H1 2022 change Financial income/(expenses) breakdown: € million % sales € million % sales % 359.7 24.7% 310.9 24.7% 15.7% Financial income/(expenses) EBIT-adjusted H1 2023 H1 2022 breakdown: Operating adjustments (16.0) -1.1% (22.1) -1.8% -27.3% Operating profit
Slide 18: Group net profit-adjusted
Group net profit-adjusted % change H1 2023 vs H1 2023 H1 2022 H1 2022 Reported Adjustments Adjusted Reported Adjustments Adjusted Reported Adjusted (3) Profit before taxation 311.1 (15.1) 326.2 282.3 (22.1) 304.3 10.2% 7.2% Taxation (1) (93.4) (1.9) (91.6) (82.7) 1.0 (83.8) 12.9% 9.3% Net profit 217
Slide 19: Free cash flow reflects strong working capital absorption
Free cash flow reflects strong working capital absorption H1 2023 H1 2022 Δ H1 2023 vs H1 2022 Δ H1 2023 vs H1 2022 Total Recurring Total Recurring Total Recurring € million € million € million € million € million % € million % EBITDA 395.0 330.9 64.1 19.4% EBITDA adjusted 411.1 353.0 58.1 16.4% Tax
Slide 20: Operating Working Capital increase largely driven by inventory build-up
Operating Working Capital increase largely driven by inventory build-up(1) (9.8) (8.0) 372.1 1,132.6 € million 771.0 778.3 Total: €354.3 million OWC at 31 December Organic Perimeter Forex OWC at 30 June 2023 2022ʿ²ʾ 39.1% % on net sales rolling 28.8% > OWC as % of last 12 months rolling net sales at
Slide 21: Increase in net debt mainly due to strong cash absorption by working capital
Increase in net debt mainly due to strong cash absorption by working capital 2.5x 2.4x (13.0) (33.1) (154.4) (67.5) (1,823.2) € million (1,555.3) Total: €(268.0) million Net debt at 31 (1) FCF Dividend Acquisitions Other including fx (2) Net debt at 30 June December 2022 and put options 2023 > Net f
Slide 22: 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, reflecting business seasonality a
Slide 23: Annex
Annex
Slide 24: EBIT-adjusted by region
EBIT-adjusted by region Americas North, Central & Eastern Europe Reported Organic Reported Organic H1 2023 H1 2022 Perimeter FX H1 2023 H1 2022 Perimeter FX change change change change € million % of sales € million % of sales % % % % € million % of sales € million % of sales % % % % Net sales 632.1
Slide 25: H1 2023 Consolidated P&L
H1 2023 Consolidated P&L Organic Reported margin Organic Perimeter H1 2023 H1 2022 Forex impact change accretion change effect (dilution) (3) € million % sales € million % sales % bps % % % Net sales 1,457.8 100.0% 1,256.9 100.0% 16.0% 14.2% 1.8% - COGS (1) (585.5) -40.2% (490.5) -39.0% 19.4% (50) 1
Slide 26: Q2 2023 Consolidated P&L
Q2 2023 Consolidated P&L Organic margin Reported Organic Perimeter Q2 2023 Q2 2022 accretion Forex impact change change effect (dilution) (3) € million % sales € million % sales % bps % % % Net sales 789.9 100.0% 722.1 100.0% 9.4% 10.1% 1.7% -2.4% COGS (1) (307.4) -38.9% (267.3) -37.0% 15.0% (100) 1
Slide 27: Net sales by region & key market; Net sales by brand cluster
Net sales by region & key market H1 2023 H1 2022 Change of which: Q2 2023 % Group % Group % organic €m €m % organic perimeter forex sales sales growth Americas 632.1 43.4% 556.3 44.3% 13.6% 10.6% 1.6% 1.5% 3.4% USA 397.1 27.2% 343.3 27.3% 15.7% 11.7% 2.7% 1.3% 3.3% Jamaica 72.4 5.0% 61.6 4.9% 17.5%
Slide 28: Reclassified balance sheet
Reclassified balance sheet Invested capital and resources € million 30 June 2023 31 December 2022ʿ¹ʾ total change fixed assets 4,018.7 3,981.0 37.7 other non-current assets and (liabilities) (353.3) (360.7) 7.4 operating working capital 1,132.6 778.3 354.3 other current assets and (liabilities) (129
Slide 29: Consolidated balance sheet (1 of 2)
Consolidated balance sheet (1 of 2) Assets 30 June 2023 31 December 2022 (1) Change € million € million € million ASSETS Non-current assets Property, plant and equipment 832.4 781.3 51.0 Right of use assets 64.9 68.4 (3.6) Biological assets 22.8 17.5 5.4 Goodwill 1,873.7 1,878.5 (4.8) Brands 1,175.9
Slide 30: Consolidated balance sheet (2 of 2)
Consolidated balance sheet (2 of 2) Liabilities and shareholders’ equity 30 June 2023 31 December 2022 (1) Change € million € million € million LIABILITIES AND SHAREHOLDERS' EQUITY Shareholders' equity Issued capital and reserves attributable to shareholders of the 2,843.8 2,676.2 167.6 parent Compa
Slide 31: Reclassified Cash flow statement
Reclassified Cash flow statement H1 2023 H1 2022 Change € million € million € million EBITDA 395.0 330.9 64.1 Effects from hyperinflation accounting standard adoption 5.2 3.5 1.7 Accruals and other changes from operating activities 44.8 (27.5) 72.2 Income taxes paid (120.4) (89.8) (30.6) Cash flow f
Slide 32: Operating working capital
Operating working capital Reported Organic Perimeter Forex 30 June 2023 31 December 2022 (1) 30 June 2022 change change effect impact % sales % sales € million € million % sales € million € million € million € million € million rolling rolling Trade receivables 433.7 15.0% 308.2 11.4% 125.5 128.4 8.
Slide 33: Financial debt details
Financial debt details Eurobonds and Term loans composition as of 30 June 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 8% Apr 30, 2019 Apr-24 Unrated Eu
Slide 34: Exchange rates effects
Exchange rates effects Average exchange rates Period end exchange rate change H1 2023 vs change 30 June 2023 vs H1 2023 H1 2022 30 June 2023 31 December 2022 H1 2022 31 December 2022 1 Euro 1 Euro % 1 Euro 1 Euro % US Dollar 1.081 1.094 1.2% 1.087 1.067 -1.8% Canadian Dollar 1.457 1.391 -4.6% 1.442
Slide 35: 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
Davide Campari-Milano — H1 2023 Earnings Presentation on 6ix