2007 First half results

Very positive first half results, with strong growth in sales and profitability
Net sales: € 440.6 million (+5.4%)
EBITDA before one off’s: € 102.4 million (+7.5%), 23.2% of net sales
EBIT before one off’s: € 92.7 million (+7.9%), 21.0% of net sales
Group net profit: € 56.9 million (+2.5%)

Bob Kunze-Concewitz, Chief Executive Officer: “In the first half of 2007 we achieved strong results across our brands and markets. Looking forward, we remain optimistic about a positive evolution of our business”

Milan, 11 September 2007 - The Board of Directors of Davide Campari-Milano S.p.A. approved the results for the first half ending 30 June 2007. Thanks to the extremely positive development of the business, sales and all profit indicators showed solid growth.

Consolidated results 1 January -
30 June 2007
€ million
1 January -
30 June 2006
€ million
at actual
at constant
 Net sales 440.6 417.8 5.4% 7.8%
 Trading profit 123.7 115.3 7.2% 9.4%
 EBITDA before one-off’s 102.4 95.3 7.5% 9.7%
 EBITDA 100.8 95.2 5.9% 8.1%
 EBIT before one-off’s 92.7 86.0 7.9% 10.3%
 EBIT 91.1 85.9 6.1% 8.5%
 Pre-tax profit before minority interests 82.7 80.4 2.8% 5.0%
 Group net profit 56.9 55.5 2.5% 4.6%


In the first half of 2007, Group sales totalled € 440.6 million, an increase of 5.4% (+7.8% at constant exchange rates).

The overall change in consolidated sales resulted from an organic growth of 10.7% and a negative exchange rate effect of 2.3%. The perimeter effect, which came in at negative 2.9%, was negatively affected by the announced termination of the Lipton Ice Tea distribution contract on the Italian market and partially offset by the external growth mainly generated by Glen Grant and Old Smuggler (whose sales started on 15 March 2006).

Trading profit increased by 7.2% to € 123.7 million (+9.4% at constant exchange rates), or 28.1% of sales. Organic growth accounted for 7.9% and external growth for 1.5%, while exchange rate effects negatively contributed 2.2%.
EBITDA before one-off’s increased by 7.5%
(+9.7% at constant exchange rates) to € 102.4 million, or 23.2% of sales.
EBITDA rose by 5.9%
(+8.1% at constant exchange rates) to € 100.8 million, or 22.9% of sales.
EBIT before one-off’s went up by 7.9%
(+10.3% at constant exchange rates) to € 92.7 million, or 21.0% of sales.
EBIT increased by 6.1%
(+8.5% at constant exchange rates) to € 91.1 million, or 20.7% of sales.
Profit before tax and minority interests
was € 82.7 million, an increase of 2.8% (+5.0% at constant exchange rates).
The Group’s net profit
was € 56.9 million, with an advance of 2.5% (+4.6% at constant exchange rates).
As of 30 June 2007, net debt stood at € 328.0 million (€ 379.5 million as of 31 December 2006).

Following the first half of 2007, it’s worth mentioning that on 1 August 2007, the Group finalised the acquisition of the super premium X-Rated Fusion Liqueur, Jean-Marc XO luxury vodka and XRated ultra premium vodka, for a total value of US$ 40 million (€ 29 million). A more detailed disclosure of the acquisition was circulated following the announcement of the deal on 19 July 2007.


The spirits segment (72.3% of total sales) recorded growth of 8.7%, the combined result of organic growth of 10.2%, a negative exchange rate effect of 3.2% and external growth of 1.7%.

External growth was mainly driven by Glen Grant and Old Smuggler. The Campari brand posted growth of 10.6% at constant exchange rates (+9.7% at actual exchange rates). SKYY sales rose by 13.3% at constant exchange rates (+5.4% at actual exchange rates), thanks to a very positive performance on both the US and international markets. Regarding the other main brands, the spirits segment benefited from strong performances from Aperol (+23.7% at constant exchange rates), the Brazilian brands (+9.2% at constant exchange rates), Cynar (+4.8% at constant exchange rates), CampariSoda (+2.6% at constant exchange rates) and Ouzo 12 (+1.2% at constant exchange rates). It should be noted that the US distribution contracts for 1800 and Gran Centenario tequilas agency brands (+10.9% in the first half of 2007 at constant exchange rates) will end on 31 December 2007.

The wines segment, which contributed 12.9% of total sales, registered growth of 19.7%, due to the combination of strong organic growth of 20.2% and a negative exchange rate effect of 0.5%. The segment’s strongly positive performance was driven by Cinzano vermouth (+43.2% at constant exchange rates) and by Cinzano sparkling wines (+25.3% at constant exchange rates). The wines segment also benefited from positive performances from Sella & Mosca (+4.6% at constant exchange rates) and Mondoro, Riccadonna and Cantina Serafino.

Sales of soft drinks (13.0% of total sales), which are generated almost entirely on the Italian market, recorded a decline of 20.2%, due to the combination of a negative perimeter effect of 25.5%, attributable to the termination of Lipton Ice Tea’s sales, and an organic growth of 5.3%, driven by Crodino (+5.5%) and of the Lemonsoda range and other carbonated drinks (+8.2%).

Looking at results by region, in the first half of 2007 sales on the Italian market (43.7% of total Group sales) recorded a negative variation of 0.8%, due to the combination of a negative perimeter effect (-8.8%), attributable to Lipton Ice Tea, offset by a positive organic growth (+8.0%). Sales in Europe (19.6% of consolidated sales) grew by 24.5%, boosted by both external growth of 6.4% and an organic sales growth of 18.3%, thanks to positive performances from important markets such as Germany and Russia. In the Americas (32.5% of total sales), the US market registered organic growth of 9.8%, a negative exchange rate effect of 8.2% and external growth of 0.5%. In Brazil, sales registered organic growth of 11.0% at constant exchange rates. The exchange rate effect was negative at 1.1% and the perimeter effect was a negative 0.1%. Sales in the rest of the world (including duty free sales), which accounted for 4.1% of total sales, grew by 9.5% overall, driven by organic growth of 11.4%.

* * *


Please note that at 17.00 (CET) today, Tuesday 11 September 2007, Gruppo Campari’s management will hold a conference call to present the Group’s 2007 first quarter results to analysts, investors and the press. To participate, please dial one of the following numbers:

  • from Italy: 800 785 163 (toll free number)
  • from abroad: +39 02 6968 2741

Access code: C998245

The presentation slides can be downloaded before the conference call from the main investor relations page on Gruppo Campari’s website, at www.camparigroup.com/investors.
A recording of the conference call will be available from 22.00 (CET) on Tuesday 11 September until Tuesday 18 September 2007. To hear it, please call +44 (0)207 136 9233 (access code: 81671172 #).

Publishing date: 
11 Sep 2007
Last updated May 27 2013