Davide Campari-milano N.v. · MIL:CPR
Davide Campari-milano — 9M 2024 Earnings Presentation
33 slides from Davide Campari-milano's earnings presentation, Oct 29, 2024
Slide 1: 9M 2024 Results Presentation
9M 2024 Results Presentation 29th of October 2024
Slide 2: Executive Summary
Executive Summary • Whilst continuing to outperform the industry in key brand-market combinations mainly thanks to aperitifs and tequila, overall 9M trend reflecting a challenging backdrop due to macroeconomic, Current year sectorial and climatic factors with a peak in the third quarter performance
Slide 3: Key 9M financial highlights
Key 9M financial highlights > Organic net sales +2.1% in 9M driven by Global Priority Brands, primarily in the Americas and EMEA, +2.1% notwithstanding negative impact of poor weather, pressure on disposable income from inflation and consumer and distributors reduced confidence. Organic net sales -1
Slide 4: Growth driven by Global Priorities, primarily in the Americas and EMEA
Growth driven by Global Priorities, primarily in the Americas and EMEA, in a subdued market context > 9M 2024 net sales with reported change of +3% (CAGR vs 9M 2019: +11%) of which organic +2%, perimeter impact +2% (or €46.5 million) mainly driven by Courvoisier (€34.9 million1), primarily in the US
Slide 5: +5% organic 9M growth in the Americas with sector outperformance in the US
+5% organic 9M growth in the Americas with sector outperformance in the US in a soft market backdrop as well as ongoing growth in Brazil and other countries Weight Organic Sales Growth in Sales Q3 9M CAGR ‘19 AMERICAS Flat performance in Q3 resulting in +2% growth in 9M in a subdued market context.
Slide 6: US sell-out data showing Campari Group with sector outperformance
US sell-out data showing Campari Group with sector outperformance, particularly in the strategic on-premise channel, while maintaining pricing discipline across the board Outperformance vs Spirits Sector Nielsen Off-Premise NABCA Nielsen On-Premise Only company with growth YTD Value growth (9M YTD)
Slide 7: US by brand development indicating solid performance in Espolòn and Aperol
US by brand development indicating solid ongoing performance in key accelerator brands, Espolòn and Aperol, partially offset by challenging trends in other categories Campari Group (Company) Spirits Sector related Category Outperformance vs Category Espolòn Aperol Wild Turkey Grand Marnier SKYY Sell
Slide 8: Growth in EMEA despite challenging trading environment and shipment phasing
Growth in EMEA despite impacts of challenging trading environment and phasing of shipments in core countries with strong GTR and Greece performance Weight Organic Sales Growth in Sales Q3 9M CAGR ‘19 Q3 impacted by significantly below expectations re-orders in the back-end of the 16% -7% -6% +7% thi
Slide 9: Europe sell-out data showing significant outperformance
Europe sell-out data showing Campari Group with significant outperformance so far this year supported by pricing discipline and solid growth vs pre-Covid Outperformance vs Spirits Sector Europe Off Premise Value growth Index vs 2019 Campari Group (Company) Spirits Sector Value Market Share 4% 4% 173
Slide 10: Europe by market showing some softness in sell-out
Europe by market showing some softness across the board in sell-out triggered by weather and consumption trends with Campari Group outperforming / in line across almost all Campari Group (Company) value Spirits Sector value Outperformance vs category Italy Germany France UK Rest Shipments Sell-out v
Slide 11: APAC impacted by tough competitive environment in Australia
APAC impacted by tough competitive environment in Australia, as well as route-to- market changes and macro trends in the region, especially for India and China Weight Organic Sales Growth ASIA PACIFIC in Sales Q3 9M CAGR ‘19 Performance impacted by challenging macro and competitive environment, espe
Slide 12: Global Priorities with +3% organic growth in 9M
Global Priorities with +3% organic growth in 9M driven mainly by Espolòn, aperitifs and Grand Marnier Weight Organic Sales Growth in Sales Q3 9M CAGR ‘19 Growth of +3% in 9M on a tough comparison base (9M 2023 +23%) impacted by phasing of shipments and poor weather conditions in spring/September, es
Slide 13: Aperol outperforming its category across core EMEA markets except Italy
Aperol outperforming its category across all core EMEA markets in 9M except Italy with ongoing strong double-digit growth in seeding markets, delivering on brand growth strategy Aperol value Aperitifs / Cordials category value Outperformance vs category Italy Germany US France UK Rest Shipments Sell
Slide 14: Regional Priorities -2%; Local Priorities -1% organic
Regional Priorities -2%; Local Priorities -1% organic Weight Organic Sales Growth in Sales Q3 9M CAGR ‘19 REGIONAL PRIORITIES 9M trend mainly impacted by Magnum Tonic due supply constraints and X-Rated Other 9% -2% in APAC as well as Cabo Wabo. Frangelico, Aperol Spritz and Picon with -7% +10% Speci
Slide 15: Courvoisier: brand strategy and way forward progressing
Courvoisier: definition of brand strategy and way forward progressing with positive initial signs in main markets Courvoisier Cognac category Progress and strategic roadmap • Strengthening of sales/commercial capabilities in core focus markets Sell-out (QTD) underway, primarily US, UK and China 8% •
Slide 16: Summer 2024
SUMMER 2024 LOCARNO, VENICE apestvacs ¥ 4 4 wat ——— ESTIVALS = 4 | ~ INTERNATIONAL FIL} : aia CAMPARI = eS
Slide 17: Negroni
#NO NEGRONI WITHOUT CAMPARL
Slide 18: Slide 18
Slide 19: Financials
Financials
Slide 20: EBIT-adj. margin impacted by contained gross margin trend
EBIT-adj. margin impacted by contained gross margin trend in softer market context with planned business investments underway -10 bps -30 bps -110 bps -30bps 23.6% 21.9% -140 bps organic > EBIT-adj. organic -4.2%, margin of 21.9%, -140bps organic dilution (Q3: -18.2%, -370bps) due to: - Gross profit
Slide 21: Group pre-tax profit
Group pre-tax profit 9M 2024 9M 2023 Change € million % sales € million % sales EBIT-adjusted 499.4 21.9% 520.5 23.6% -4.1% Operating adjustments (30.9) -1.4% (29.4) -1.3% 5.0% Operating profit = EBIT 468.5 20.6% 491.1 22.3% -4.6% Financial income (expenses) (57.7) -2.5% (50.5) -2.3% 14.2% Total fin
Slide 22: Increase in net debt mainly due to Courvoisier acquisition and capex
Increase in net debt mainly due to Courvoisier acquisition and planned capex investments with no major changes in Q3 30 September 30 June 31 December Change vs Change vs € million 2024 2024 2023 June 2024 December 2023 Short-term cash (debt) 173.8 287.9 179.1 (114.1) (5.4) - Cash and cash equivalent
Slide 23: Outlook
THE a sad lanier Outlook
Slide 24: Key company initiatives to accelerate growth and profitability
Key company initiatives to accelerate growth and profitability through focus, simplification and cost containment Creation of Portfolio Cost Containment Houses of Brands Streamlining Program • Reorganization of brand management • Streamline brand portfolio via • Create efficiency in structure costs
Slide 25: Outlook
Outlook > Net sales organic growth to be at low single digit - Americas impacted by ongoing muted consumption environment in the US with growth rate also to reflect high comparison base in Q4 as well as the tail-end impact of the hurricane in Jamaica while other countries continue to grow - EMEA wit
Slide 26: Annex
Ww ws Patt Rade Veo! Vey weet
Slide 27: Net sales by region & key market
Net sales by region & key market 9M 2024 9M 2023 Change % of which: Q3 2024 € million % of sales € million % of sales Total Organic Perimeter FX Organic Americas 1,027.3 45.1% 958.6 43.5% 7.2% 4.9% 3.3% -1.0% 1.0% USA 647.8 28.4% 604.8 27.5% 7.1% 2.2% 5.2% -0.3% -0.2% Jamaica 105.5 4.6% 106.3 4.8% -
Slide 28: 9M 2024 Consolidated P&L
9M 2024 Consolidated P&L change vs 9M 2023 Organic Reported margin Organic Perimeter 9M 2024 9M 2023 Forex impact change accretion change effect (3) (dilution) € million % sales € million % sales % bps % % % Net sales 2,277.0 100.0% 2,201.3 100.0% 3.4% - 2.1% 2.1% -0.8% COGS (1) (944.1) -41.5% (898.
Slide 29: Q3 2024 Consolidated P&L
Q3 2024 Consolidated P&L change vs Q3 2023 Organic margin Reported Organic Perimeter Q3 2024 Q3 2023 accretion Forex impact change change effect (dilution) (3) € million % sales € million % sales % bps % % % Net sales 753.6 100.0% 743.5 100.0% 1.4% - -1.4% 3.9% -1.2% (1) COGS (318.3) -42.2% (312.7)
Slide 30: Financial debt details
Financial debt details Eurobonds and Term loans composition as of 30 September 2024 Outstanding Outstanding Original As % of Issue Date Maturity Type Currency Coupon Nominal Amount Nominal Amount Tenor Total (LC million) (€ million) Oct 6, 2020 Oct-27 Unrated Eurobond EUR 1.25% 550 550 7 years 23% (
Slide 31: Exchange rates effects
Exchange rates effects Average exchange rates Period end exchange rate change 30 change 9M 2024 vs 9M 2024 9M 2023 30 September 2024 31 December 2023 September 2024 vs 9M 2023 31 December 2023 US Dollar 1.087 1.084 -0.3% 1.120 1.105 -1.3% Canadian Dollar 1.479 1.458 -1.4% 1.513 1.464 -3.2% Jamaican
Slide 32: 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 33: Thanks.
Thanks. CONTACTS i n ve 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
Davide Campari-Milano — 9M 2024 Earnings Presentation on 6ix