Davide Campari-milano N.v. · MIL:CPR
Davide Campari-milano — H1 2024 Earnings Presentation
44 slides from Davide Campari-milano's earnings presentation, Jul 30, 2024
Slide 1: Results Presentation First Half ended 30 June 2024
Results Presentation First Half ended 30 June 2024 July 30th, 2024
Slide 2: Solid performance driven by outperformance in the Americas despite poor weather in EMEA
Solid performance driven by outperformance in the Americas despite impact of very poor weather in EMEA, weighing also on margin Net Sales > Organic net sales +3.8% with acceleration in Q2 (+6.9%) driven by solid performance across global priorities €1,523 million - Continued strength in aperitifs le
Slide 3: Growth driven by Global Priorities, primarily in the Americas
Growth driven by Global Priorities, primarily in the Americas while EMEA resilient despite impact of very poor weather > H1 2024 net sales with reported change of +4.5% of which organic +3.8%, perimeter impact +1.2% (or €17.6 million) driven by agency brands and Courvoisier (€8.3 million(1)), primar
Slide 4: Solid performance in the Americas mainly driven by US, Jamaica and Brazil
Solid performance in the Americas mainly driven by US, Jamaica as well as ongoing growth in Brazil Weight Organic in Sales Sales Growth AMERICAS Solid growth supported by acceleration in Q2 (+7.2% vs -0.4% in Q1) in a subdued market context. First half performance mainly thanks to continuing double
Slide 5: Positive growth in EMEA despite poor weather impacting high-margin aperitifs
Positive growth in EMEA despite impact of poor weather impacting high-margin aperitifs and driving unfavorable sales mix Weight Organic in Sales Sales Growth Pressure on high-margin aperitifs from very poor weather, especially in the North in Italy 17% -5.2% Q2, as well as impact of high comparison
Slide 6: APAC impacted by tough competitive environment in Australia
APAC impacted by tough competitive environment in Australia, as well as route-to- market changes in the region, albeit with easing of impact in Q2 Weight Organic in Sales Sales Growth ASIA PACIFIC Still challenging macro and competitive environment; Q2 mitigating some of the negative impact with sli
Slide 7: Global Priorities resilient with +5.9% organic growth
Global Priorities resilient with +5.9% organic growth driven mainly by Espolon, aperitifs and Grand Marnier Weight in Organic Sales Sales Growth Despite impact of poor weather, especially in Italy and France, and tough comparison base (H1 2023 +32.4%), positive growth in the first half led by German
Slide 8: Regional Priorities -3.4%; Local Priorities -2.3% organic growth
Regional Priorities -3.4%; Local Priorities -2.3% organic growth Organic Sales Growth REGIONAL PRIORITIES Sparkling wines, +13.7% Solid growth with some acceleration in Q2 driven by Cinzano sparkling wine, Lallier Champagne & Champagne and Mondoro partly offset by Riccadonna Vermouth Other Trend dri
Slide 9: Key media headlines about Campari Group brands in H1 2024
Key media headlines about Campari Group brands in H1 2024 9 9
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Slide 12: Campari Lou g
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Slide 13: 'To the Bone': First national campaign for 25-year anniversary
‘To the Bone’: First ever national campaign celebrating unapologetic originality in its 25-year anniversary 13 13
Slide 14: Orange Wave via Music Festivals: Coachella and Primavera Sound
Orange Wave via Music Festivals: Coachella (US) and Primavera Sounds (Spain) partnerships
Slide 15: Liquid-to-Lips: 360° activations across markets
Liquid-to-Lips: 360° activations across markets Greece: pop-ups, beach bars & city ads UK: Aperidisco @ Battersea Power Station Germany: SUNday Vibes Events APAC: City activation strategy 15
Slide 16: Brandhouse and launch of the 15-year Russel's Reserve
Reopening of the renovated Jimmy Russell Wild Turkey Experience Brandhouse and launch of the 15-year Russel’s Reserve
Slide 17: Select ready to drink alternatives presented to targeted RTD profit pools
Select ready to drink alternatives presented to targeted RTD profit pools; Wild Turkey in Japan and Espolòn in Australia 17
Slide 18: Courvoisier: swift integration of operations and enhancing capabilities
Courvoisier: swift integration of operations and enhancing capabilities for the future • Integration of operations including supply chain, IT, administrative and logistics at an advanced stage, with smooth hand-over process completed • Distribution integrated into commercial platform; sales organiza
Slide 19: Financials
Financials
Slide 20: EBIT-adj. margin mainly impacted by mix effect on gross margin
EBIT-adj. margin mainly impacted by mix effect on gross margin due to weather in Q2 as well as high-cost stock +3.8% Organic Net Sales (+4.5% reported) 24.7% -30 bps +30 bps -40 bps -60bps 23.6% -40 bps organic +2.1% Organic EBIT-adj. (+0.1% reported) > EBIT-adj. organic growth of +2.1%, margin of 2
Slide 21: Resilient EBIT-adjusted growth driven by the Americas and EMEA
Resilient EBIT-adjusted growth driven by the Americas and EMEA; APAC impacted mainly by infrastructure investments H1 2024 margin growth drivers Regional Weight in Group EBIT-adj. EBIT-adj Net sales EBIT-adj. Organic bps impact vs H1 2023 margin organic organic H1 growth growth EBIT-adj. Gross 44.9%
Slide 22: Group pre-tax profit
Group pre-tax profit H1 2024 H1 2023 Change € million % sales € million % sales EBIT-adjusted 360.0 23.6% 359.7 24.7% 0.1% Operating adjustments (24.4) -1.6% (16.0) -1.1% 52.3% Operating profit = EBIT 335.6 22.0% 343.7 23.6% -2.4% Financial income (expenses) (33.0) -2.2% (32.4) -2.2% 1.9% Total fina
Slide 23: Group net profit-adjusted
Group net profit-adjusted H1 2024 H1 2023 Change € million Reported Adjustments Adjusted Reported Adjustments Adjusted Reported Adjusted Pre-tax profit 310.7 (22.6) 333.3 311.1 (15.1) 326.2 -0.1% 2.2% (1) Taxation (94.1) 3.3 (97.4) (93.4) (1.9) (91.6) 0.7% 6.3% Net profit 216.6 (19.3) 235.9 217.6 (1
Slide 24: Free cash flow impacted mainly by extraordinary capex
Free cash flow impacted mainly by extraordinary capex H1 2024 H1 2023 Change Δ Change Δ Total Recurring Total Recurring Total Recurring € million € million € million € million € million % € million % EBITDA 394.4 395.0 (0.6) -0.2% EBITDA adjusted 418.8 411.1 7.8 1.9% (1) Taxes paid & Other (18.5) (2
Slide 25: Operating Working Capital increase driven by Courvoisier and ageing inventory
Operating Working Capital increase largely driven by Courvoisier first- time consolidation and ageing inventory build-up Total change: €648.5 million € million % on net sales 58.8% 37.9% 44.2% rolling > OWC as % of net sales at 44.2% as of 30 June 2024 on a like-for-like basis, excluding Courvoisier
Slide 26: Increase in net debt mainly due to Courvoisier acquisition
Increase in net debt mainly due to net effect of Courvoisier acquisition 3.5x (84.2) (477.3) 2.5x (60.1) (78.1) € million 2,469.0 (2,553.2) (1,853.5) 1,853.5 1,913.6 1,991.7 Total: €(699.7) million Net debt at 31 December 2023 FCF Dividend Net Impact of acquisition Other including FX and put Net deb
Slide 27: Conclusion & Outlook
Conclusion & Outlook > Solid performance in the first half with net sales organic growth +3.8% with acceleration in Q2 (+6.9%). Ongoing outperformance of the industry, especially in the Americas and despite negative impact of poor weather in EMEA, which resulted in negative mix impact on margin > Lo
Slide 28: Annex
Annex
Slide 29: H1 2024 Consolidated P&L
H1 2024 Consolidated P&L Change % of which: Organic Reported margin H1 2024 H1 2023 Organic Perimeter FX change accretion (dilution) (3) € million % sales € million % sales % bps % % % Net sales 1,523.4 100.0% 1,457.8 100.0% 4.5% 3.8% 1.2% -0.5% COGS (1) (625.9) -41.1% (585.5) -40.2% 6.9% 4.5% 2.5%
Slide 30: Q2 2024 Consolidated P&L
Q2 2024 Consolidated P&L Change % of which: Organic margin Reported Q2 2024 Q2 2023 accretion Organic Perimeter FX change (dilution)(3) € million % sales € million % sales % bps % % % Net sales 859.9 100.0% 789.9 100.0% 8.9% 6.9% 1.7% 0.2% COGS (1) (343.6) -40.0% (307.4) -38.9% 11.8% 8.5% 3.5% -0.2%
Slide 31: Net sales by region & key market; Net sales by brand cluster
Net sales by region & key market H1 2024 H1 2023 Change % of which: Q2 2024 € million % of sales € million % of sales Total Organic Perimeter FX Organic Americas 687.5 45.1% 632.1 43.4% 8.8% 6.8% 2.0% - 12.2% USA 423.8 27.8% 397.1 27.2% 6.7% 3.5% 3.2% - 7.2% Jamaica 79.0 5.2% 72.4 5.0% 9.1% 10.7% -
Slide 32: EBIT-adjusted by region
EBIT-adjusted by region H1 2024 H1 2023 Change % of which: € million % of ales € million % of sales Total Organic Perimeter FX Americas Net sales 687.5 100.0% 632.1 100.0% 8.8% 6.8% 2.0% 0.0% Gross profit 379.4 55.2% 352.3 55.7% 7.7% 7.0% 0.9% -0.2% A&P (106.5) -15.5% (101.9) -16.1% 4.6% 3.2% 0.8% 0
Slide 33: Consolidated balance sheet (1 of 2)
Consolidated balance sheet (1 of 2) Assets 30 June 2024 31 December 2023 Change € million € million € million ASSETS Non-current assets Property, plant and equipment 1,199.5 964.5 235.0 Right of use assets 64.6 65.4 (0.8) Biological assets 30.2 22.8 7.4 Goodwill 2,454.4 1,850.8 603.5 Brands 1,371.3
Slide 34: Consolidated balance sheet (2 of 2)
Consolidated balance sheet (2 of 2) Liabilities and shareholders’ equity 30 June 2024 31 December 2023 Change € million € million € million LIABILITIES AND SHAREHOLDERS' EQUITY Shareholders' equity Issued capital and reserves attributable to shareholders of the parent Company 3,800.0 2,925.2 874.8 N
Slide 35: Reclassified Cash flow statement
Reclassified Cash flow statement H1 2024 H1 2023 Change € million € million € million EBITDA 394.4 395.0 (0.6) (1) Income taxes and other changes (18.5) (70.5) 51.9 Cash flow from operating activities before changes in working capital 375.9 324.6 51.3 Changes in net operating working capital (190.9)
Slide 36: Operating working capital
Operating working capital Reported 30 June 2024 31 December 2023 Organic Perimeter FX 30 June 2023 change € million % sales rolling € million % sales € million € million € million € million € million % sales rolling Trade receivables 497.3 16.7% 374.3 12.8% 123.1 120.2 3.4 (0.6) 433.7 15.0% Total in
Slide 37: Financial debt details
Financial debt details Eurobonds and Term loans composition as of 30 June 2024 Outstanding Outstanding Nominal As % of Issue Date Maturity Type Currency Coupon Nominal Amount Original Tenor Amount (LC million) Total (€ million) Oct 6, 2020 Oct-27 Unrated Eurobond EUR 1.250% 550 550 7 years 23% Dec 6
Slide 38: Exchange rates effects
Exchange rates effects Average exchange rates Period end exchange rate H1 2024 H1 2023 change 30 June 2024 31 December 2023 change 1 Euro 1 Euro % 1 Euro 1 Euro % US Dollar 1.081 1.081 - 1.071 1.105 3.2% Canadian Dollar 1.469 1.457 -0.8% 1.467 1.464 -0.2% Jamaican Dollars 168.160 165.787 -1.4% 167.1
Slide 39: Shareholding structure as of 30 June 2024
Shareholding structure as of 30 June 2024 % of Ordinary Shares + Total Ordinary Shares Total Special Voting Special Voting + Special Voting % of Ordinary Special Voting Special Voting Shares A + Special Shares A + Shareholders Ordinary Shares (1) Shares A + Special Shares Shares A (2) Shares B Votin
Slide 40: 2023 net sales by priority following restatement
2023 net sales by priority following restatement Restated 2023 sales by priority EUR million Q1 2023 Q2 2023 Q3 2023 Q4 2023 H1 2023 9M 2023 FY 2023 Global priorities 438.3 531.8 497.3 430.4 970.1 1,467.4 1,897.8 Regional priorities 127.9 138.2 136.2 167.9 266.0 402.2 570.1 Local priorities 46.7 53.
Slide 41: 2023 net sales by region following restatement
2023 net sales by region following restatement Restated 2023 sales by region EUR million Q1 2023 Q2 2023 Q3 2023 Q4 2023 H1 2023 9M 2023 FY 2023 Americas 316.8 315.3 326.6 324.0 632.1 958.6 1,282.6 EMEA 299.9 420.5 357.6 327.8 720.4 1,078.0 1,405.8 APAC 51.2 54.1 59.3 65.5 105.4 164.7 230.2 Total 66
Slide 42: Proforma 2023 segment reporting following regions reclassification
Proforma 2023 segment reporting following regions reclassification after reclassification published FY 2023 Net sales EBIT-adj. Net sales EBIT-adj. € million % € million % € million % € million % Americas 1,282.6 43.9% 261.1 42.2% 1,282.6 43.9% 261.1 42.2% SEMEA (Southern Europe, Middle East and Afr
Slide 43: 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 44: 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 @GruppoCampari CampariGroup @camparigroup CampariGroup
Davide Campari-Milano — H1 2024 Earnings Presentation on 6ix