Campari Group delivered a resilient performance in the first three months of 2024 in light of the expected tough comparison base in a small quarter. Net Sales organic growth was primarily driven by overall continued strength in aperitifs led by Campari and Aperol despite the challenging comparison base, largely thanks to EMEA and LATAM markets, while Espolòn in the US continued to show solid momentum. EBIT-adjusted was down -2.3% organically, indicating -60bps vs Q1 2023 due to the dilutive effect of SG&A after flattish net sales growth. Gross margin was stable as pricing and positive sales mix fully offset expected COGS headwinds. Outlook for the full year remains unchanged.
• Net sales of €663.5 million, up +0.2% organically and -0.7% on a reported basis including perimeter impact of +0.6% driven by agency brands and FX effect of -1.4% mainly attributable to the US$. Against a normalized Q1 2023, excluding the temporary phasing effect ahead of price increases mainly impacting Italy and the US in the aperitifs and Espolòn, organic sales growth would be c. +6%.
• EBIT-adjusted of €151.5 million, down -2.3% organically and -4.9% on a reported basis, with margin of 22.8%. Excluding the temporary positive phasing effect in Q1 2023, EBIT-adjusted organic growth would be c. +13% with flat gross margin.
• EBITDA-adjusted of €181.1 million, up +0.6% organically and down -1.7% on a reported basis, with margin of 27.3%.
• Group profit before taxation at €145.0 million, up +8.6% on a reported basis. Group profit before taxation-adjusted of €147.3 million, up +5.8%.
• Net debt1 to EBITDA-adj. at 1.8 times (vs. 2.5 times at December 31st, 2023) or 3.5 times with pro-forma net debt2 after the closing of the Courvoisier acquisition excluding the positive P&L effect of its first-time consolidation.
Milan, May 7th, 2024-The Board of Directors of Davide Campari-Milano N.V. (Reuters CPRI.MI-Bloomberg CPR IM) approved the additional financial information for the three months ended March 31st, 2024.
Matteo Fantacchiotti, Chief Executive Officer: 'We entered the year yet again with momentum and a resilient performance in a low season quarter and despite the expected tough comparison base. Going forward, our outlook remains unchanged. With normalizing industry consumption patterns and volatile macro environment, we expect continued industry outperformance thanks to our healthy brands playing in growing categories, particularly in aperitifs and tequila. For the medium-term, we remain confident about continued growth momentum to deliver profitable growth. With the very recent closing of Courvoisier deal, we are also pleased to celebrate and welcome this iconic maison of superior quality and prestige cognac to our portfolio of premium and global brands and we look forward to start unleashing its full potential.'.
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https://www.camparigroup.com/sites/default/files/downloads/Q1%202024%20Results%20Press%20Release.pdf
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