Davide Campari-milano N.v. · MIL:CPR
Davide Campari-milano — 9M 2023 Earnings Presentation
28 slides from Davide Campari-milano's earnings presentation, Oct 26, 2023
Slide 1: Results Presentation First Nine Month Results ended 30 September 2023
Results Presentation First Nine Month Results ended 30 September 2023 October 26, 2023
Slide 2: Strong momentum in the nine months confirmed after expected normalisation in Q3
Strong momentum in the nine months confirmed after expected 9M 2023 normalisation in Q3 > Organic sales growth of +10.5% in the nine months thanks to solid brand momentum, in particular from the aperitifs, tequila and bourbon, as well as robust pricing across the portfolio +10.5% • organic growth of
Slide 3: Solid growth across all regions, with Aperol, Espolòn and premium bourbon outperforming
Solid growth across all regions, with Aperol, Espolòn and premium bourbon outperforming 9M 2023 net sales Organic Performance and Weight Breakdown AMERICAS 6.5% GLOBAL PRIORITIES 10.9% SEMEA 9.2% REGIONAL PRIORITIES 13.0% NCEE 16.1% LOCAL PRIORITIES 2.9% APAC 26.6% Rest of portfolio , 9% Others , 4%
Slide 4: 9M 2023 net sales organic performance by key market (Americas)
9M 2023 net sales organic performance by key market AMERICAS Organic Sales Growth by Key Market • Very solid growth in the US, largely thanks to Espolòn, Aperol, Russell’s USA 9.1% Reserve and Appleton Estate, more than offsetting the destocking effect of Grand Marnier. Q3 shipments were up +4.9%, a
Slide 5: 9M 2023 net sales organic performance by key market (NCEE)
9M 2023 net sales organic performance by key market NCEE Organic Sales Growth by Key Market • Solid performance in Germany overall, boosted by an acceleration in Q3 (+38.8%), helped also by robust pricing. The growth was largely driven by the GERMANY aperitif portfolio in their peak season, includin
Slide 6: Global priorities net sales grew +10.9% organically in the first 9 months 2023
Global priorities net sales grew +10.9% organically in the first 9 months 2023 GLOBAL PRIORITIES > Aperol: strong growth across markets, with positive momentum APEROL 23.3% continuing during the peak summer season despite unfavourable 59% weather, boosted also by pricing and strong consumption, part
Slide 7: Regional priorities net sales grew +13.0% organically in the first 9 months 2023
Regional priorities net sales grew +13.0% organically in the first 9 months 2023 REGIONAL PRIORITIES 37.6% > Espolòn: continued strong momentum in the core US (Q3 +32.4%) as ESPOLON the brand continues to gain market share driven by both volume share gain and positive pricing thanks to its strong br
Slide 8: Local priorities net sales grew +2.9% organically in the first 9 months 2023
Local priorities net sales grew +2.9% organically in the first 9 months 2023 LOCAL PRIORITIES > Campari Soda: slightly positive after a weaker Q3 in core Italy due to wholesaler caution and unfavourable weather CAMPARI SODA 1.4% 8% WILD TURKEY RTD 6.3% > Wild Turkey RTD: positive performance driven
Slide 9: Aperol Spritz: US Open takeover
Aperol Spritz: US Open takeover 9
Slide 10: Campari sponsors the 80th Venice International Film Festival
Campari sponsors the 80th Venice International Film Festival for the 7th consecutive year in style and the was the Official Spirit partner of the 61st edition of the New York Film Festival 10
Slide 11: The 11th global 'Negroni Week' 2023
The 11th global ‘Negroni Week’ 2023: Wuliangye and Campari Group 79 markets and over 11,800 bars jointly create and launch the participating, a +17% increase vs 2022! “Wugroni” Cocktail in Shanghai 11
Slide 12: The Glen Grant Devotion 70-Year-Old auction
Both The Glen Grant Devotion 70-Year-Old, the oldest whisky to be released from the distillery with only 7 decanters available worldwide and a rare 68-Year-Old sold at auctions for a combined total of over $357,000 USD set to benefit charitable organizations in Scotland The Glen Grant Devotion Decan
Slide 13: SKYY Infusions: newly launched Espresso & Agave Lime
SKYY Infusions: newly launched Espresso & Agave Lime 13 13
Slide 14: Espolon tequila: pop-up Cantina Festival Tour
Espolon tequila: pop-up Cantina Festival Tour across 8 key events such as the Gov Ball in NY, Pitchfork Festival in IL and the IMFC Hispanic Heritage Night in FL at Inter Miami Stadium 14 14
Slide 15: Business development initiatives
Business development initiatives > New distribution agreement for Miraval Rosé in the US and France: - Campari Group entered into a distribution agreement with French company SAS Miraval Provence as the exclusive importer of Miraval Rosé, Studio Miraval, Muse Miraval and Fleur de Miraval in the US a
Slide 16: New Route-to-Market: Greece
New Route-to-Market: Greece - Campari Group is setting up its own in-market company in the Greek market, which will fully undertake the trading and distribution of alcoholic beverages of Campari Group in Greece as of January 1st, 2024 - The strategic decision demonstrates the importance of the Greek
Slide 17: Financial Review
FINANCIAL REVIEW 17
Slide 18: Double-digit EBIT-adjusted organic growth with +10bps organic margin expansion
Double-digit EBIT-adjusted organic growth with +10bps organic margin expansion 9M’23 +10.8% 24.5% (10bps) +50bps €159.3(40bps) (100bps) (1) 23.6% Organic EBIT-adj (1) (+5.7% reported) +10bps organic > EBIT-adj., organic growth of +10.8%, +10bps organic margin accretion (Q3: +3.3%, -20bps dilution):
Slide 19: Profit before taxation
Profit before taxation total 9M 2023 9M 2022 change € million % sales € million % sales % 520.5 23.6% 492.2 24.5% 5.7% EBIT adjusted Operating adjustments (29.4) -1.3% (26.1) -1.3% 12.7% Financial income/(expenses) and 491.1 22.3% 466.1 23.2% 5.4% 9M 2023 9M 2022 Operating profit = EBIT adjustments
Slide 20: Increase in net debt mainly due to planned capex investments
Increase in net debt mainly due to planned capex investments Change 30 September 2023 € million 30 September 2023 31 December 2022(\) vs 31 December 2022(3) Short-term cash/(debt) 260.6 318.6 (58.0) - Cash and cash equivalents 682.3 435.4 246.9 - Bonds and Bank loans (410.4) (107.0) (303.5) - Others
Slide 21: Outlook
Outlook > Full year guidance of flat organic EBIT-adj margin in 2023(1) remains confirmed despite the current volatile macro-environment > Organic performance - topline performance is expected to reflect the strength of our key brands with continued outperformance vs. core reference markets, positiv
Slide 22: Annex
Annex
Slide 23: Net sales by region & key market; net sales by brand cluster
Net sales by region & key market 9M 2023 9M 2022 Change of which: Q3 2023 % Group % Group % organic €m €m % organic perimeter forex sales sales growth Americas 958.6 43.5% 907.8 45.3% 5.6% 6.5% 1.1% -2.0% 0.1% USA 604.8 27.5% 553.5 27.6% 9.3% 9.1% 2.0% -1.9% 4.9% Jamaica 106.3 4.8% 103.8 5.2% 2.4% 4
Slide 24: 9M 2023 Consolidated P&L
9M 2023 Consolidated P&L Organic margin Reported 9M 2023 9M 2022 accretion Organic changePerimeter effectForex impact change (dilution) (3) € million % sales € million % sales % bps % % % Net sales 2,201.3 100.0% 2,005.7 100.0% 9.8% 10.5% 1.3% -2.1% COGS (1) (898.2) -40.8% (795.6) -39.7% 12.9% (10)
Slide 25: Q3 2023 Consolidated P&L
Q3 2023 Consolidated P&L Organic margin Reported Organic Perimeter Q3 2023 Q3 2022 accretion Forex impact change change effect (dilution) (3) € million % sales € million % sales % bps % % % Net sales 743.5 100.0% 748.8 100.0% -0.7% 4.4% 0.5% -5.6% COGS (1) (312.7) -42.1% (305.1) -40.7% 2.5% 60 2.9%
Slide 26: Financial debt details
Financial debt details Eurobonds and Term loans composition as of 30 September 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 Unrat
Slide 27: Exchange rates effects
Exchange rates effects Average exchange rates Period end exchange rate change 9M 2023 vs 30 September 31 December change 30 September 2023 9M 2023 9M 2022 9M 2022 2023 2022 vs 31 December 2022 1 Euro 1 Euro % 1 Euro 1 Euro % US Dollar 1.084 1.065 -1.7% 1.059 1.067 0.7% Canadian Dollar 1.458 1.365 -6
Slide 28: 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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