Davide Campari-Milano N.V. (0ROY) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good evening, this is the Conosco Conference Operator. Welcome and thank you for joining the Campari Group First Half 2025 Results Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Simon Hunt, CEO, and Paolo Marchesini, CFO of Campari. Please go ahead. Thank you very much. Good evening, good afternoon to everyone. Thank you for joining us to go through our 2025 half-year results and the perspectives for the remainder of the year. As always, Paolo is here with me, along with our AI team. Chiara and Gulsi are happy to connect after the call to further deep dive with all of you in the upcoming days as necessary. Now, a short summary of our results. You can see that the progress is in line with what we told you last time. Our outperformance in sellout is continuing on track across most geographies with further improvements in Q2, supported by a positive start to the peak season. The better weather has played a role, but at the same time, our increased focus on execution and brand building investments are also starting to pay off. Top-line trend is on track with growth in Q2 as guided, and we'll dive into details later on. Profitability is on track, driven by initial savings in SG&A and gross margin accretion, while A&P remains diluted due to the front-loading of peak season investments as expected. Cash generation is on track with positive free cash flow despite the continuation of our extraordinary CapEx program. And a few details on our key focus areas where we are progressing in line with...