2008 Nine Months results


Sales: € 649.6 million (+0.8%)
Organic sales growth: +5.8%

EBITDA before one-off’s: € 147.0 million (+1.6%), 22.6% of sales

EBIT before one-off’s: € 132.6 million (+1.9%), 20.4% of sales
Organic EBIT before one off’s growth: +7.4%

Group’s pre-tax profit: € 116.5 million (+0.9%)

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Acquisition of Destiladora San Nicolas, Mexican tequila distillery,
owner of the Espolón and San Nicolas tequila brands

Price US$ 17.5 million (€ 13.7 million) for the acquisition of 100% of share capital, plus
US$ 10 million (€ 7.8 million) of financial debt

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Bob Kunze-Concewitz, Chief Executive Officer: “In the first nine months of 2008, we achieved good results in spite of a tough environment. As we look ahead, we expect to contain the short-term market challenges and remain positive on the growth prospects of our Group in the medium-long term. Moreover, we are pleased to announce the acquisition of Destiladora San Nicolas, thus confirming our strong and unchanged commitment to strategic external growth”.

Milan, 11 November 2008 - The Board of Directors of Davide Campari-Milano S.p.A. approved the results for the first nine months ending 30 September 2008.

 Consolidated results 1 January -
30 September 2008 € million
1 January -
30 September 2007 € million
Change at actual
Change at constant
 Net sale  649.6 644.6 0.8% 3.0%
Contribution after A&P (1)  237.5 229.7 3.4% 5.7%
 EBITDA before one-off’s  147.0 144.6 1.6% 4.1%
 EBITDA   147.9 143.4 3.2% 5.6%
 EBIT before one-off’s  132.6 130.1 1.9% 4.5%
 EBIT   133.5 128.8 3.6% 6.2%
 Group’s pretax profit   116.5 115.5 0.9% 2.9%

(1) EBIT before SG&A (G&A, other operating income/expenses and selling expenses), based on new P&L format introduced in 2008.


In the first nine months of 2008, Group sales totalled € 649.6 million, a growth of 0.8% (+3.0% at constant exchange rates).
The overall change in consolidated sales resulted from an organic growth of 5.8%, a negative exchange rate effect of 2.2% and a negative perimeter effect of 2.8%. The latter was due to the announced changes in the US portfolio.

Contribution after A&P (gross margin after distribution costs and A&P) increased by 3.4% to € 237.5 million, or 36.6% of sales. Organic growth accounted for 7.1% and external growth was a negative for 1.4%; lastly exchange rate effects negatively contributed for 2.4%.

EBITDA before one-off’s increased by 1.6% (+4.1% at constant exchange rates) to € 147.0 million, or 22.6% of sales.
EBITDA rose by 3.2% (+5.6% at constant exchange rates) to € 147.9 million, or 22.8% of sales.
EBIT before one-off’s grew by 1.9%
(+4.5% at constant exchange rates) to € 132.6 million, or 20.4% of sales. Organic growth accounted for 7.4%.
EBIT increased by 3.6%
(+6.2% at constant exchange rates) to € 133.5 million, or 20.6% of sales.

The Group pre-tax profit was € 116.5 million, an increase of 0.9% (+2.9% at constant exchange rates).
As of 30 September 2008, after payments of € 31.8 million in dividends and US$ 80.8 million (approximately € 57 million) for 80% stake in of Cabo Wabo, net debt stood at € 310.2 million (€ 288.1 million as of 31 December 2007). Net debt includes € 20.5 million in estimated debt for possible exercise of put option on remaining 20% minority stake in Cabo Wabo.


The spirits segment (69.6% of total sales) recorded a decrease of 1.1%, the combined result of an organic growth of 5.7%, a negative exchange rate effect of 2.8% and a negative perimeter effect of 4.0%.
The Campari brand posted a growth of 10.2% at constant exchange rates (9.9% at actual exchange rates). SKYY sales grew by 11.0% at constant exchange rates (-0.8% at actual exchange rates).
Regarding the other main brands, Aperol confirmed the positive trend and recorded a strong growth of +19.3% at constant exchange rates; the Brazilian brands posted a growth of 15.3% at constant exchange rates (+21.1% at actual exchange rates). CampariSoda finished the first nine months with a decrease of 6.8% while Cynar declined by 3.9% at constant exchange rates over the same period. Glen Grant finished off the first nine months almost in line with last year (-0.5% at constant exchange rates).
The wines segment, which accounted for 15.4% of total sales, registered a growth of 8.2%, due to the combination of an organic growth of 8.8% and a negative exchange rate effect of 0.6%. The segment’s positive performance was driven by the strong Cinzano vermouth (+17.1% at constant exchange rates) and by the Cinzano sparkling wines range (+8.0% at constant exchange rates).
The still wines segment also benefited from the positive performance of all portfolio brands, Sella & Mosca, Cantina Serafino and Teruzzi & Puthod.

Sales of soft drinks (13.1% of total sales), which are generated almost entirely by the Italian market, recorded an organic growth of 2.0%, driven by Crodino (+6.6%), while the Lemonsoda range registered a decrease of 1.1%.

Looking at results by region, sales on the Italian market (41.8% of total Group sales) recorded an increase of 1.3%, entirely attributable to organic growth. Sales in Europe (22.9% of consolidated sales) grew by 10.0%, driven by the organic sales growth of 10.7%, thanks to positive performances from Germany and Eastern European markets; the exchange rate effect was negative at 0.7%. In the Americas (30.3% of total sales), the US market registered an organic growth of 4.8%, a negative exchange rate effect of 9.0% and a negative perimeter effect of 12.1%. In Brazil, sales registered an organic growth of 20.5%. The exchange rate effect was positive at 6.0%. Sales in the rest of the world (including duty free sales), which accounted for 5.1% of total sales, grew by 1.3% overall, driven by an organic growth of 3.2%.


Gruppo Campari reached an agreement to purchase 100% of the share capital of Mexican based Destiladora San Nicolas, S.A. de C.V. The business and assets include a distillery, the Espolón and San Nicolas tequila brands, stock of tequila and a distribution platform for the Mexican market.
The price of the acquisition of 100% of the share capital is US$ 17.5 million (or € 13.7 million at current exchange rate), plus US$ 10 million (or € 7.8 million at current exchange rate) of financial debt. An earn-out based on the incremental sales volume of the brands acquired is also foreseen.
The total consideration corresponds to a multiple of approximately 10 times the expected EBITDA in 2009, post synergies. The transaction is anticipated to close by year-end and the consideration will be paid for in cash.
With a total volume of approximately 50,000 nine-litre cases mainly sold in Mexico, the brand portfolio is composed of tequila Espolón, including Espolón Blanco, Espolón Reposado and Espolón Añejo, and tequila San Nicolás, including San Nicolás Joven and San Nicolás Blanco.
Opened in 1998, San Nicolas distillery combines the ancient Mexican cultural environment with the modern and advanced production technology. Tequila Espolón is elaborated according to a 100% natural process combined with stringent quality standards that consistently produce the finest tequila with the most delicate flavour. Tequila Espolón enjoys a strong reputation for its quality and heritage. It is a winner of the Gold Award at the 2008 World Spirits Competition in San Francisco as a result of these characteristics.

Destiladora San Nicolas is a strategic acquisition for Gruppo Campari as it contributes to the strengthening of the Group’s presence in Mexico, a growing market for premium spirits. This deal enables Gruppo Campari to get a direct access to the Mexican market through a well established production and distribution platform, thus offering significant potential for further growth. Lastly, it allows the Group to develop a fully fledged tequila strategy in the US by including a premium price offer.

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Please note that at 17.00 (CET) today, Tuesday 11 November 2008, Campari’s management will hold a conference call to present the Group’s 2008 nine months results and the acquisition to analysts, investors and media. 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: 259387

The presentation slides can be downloaded before the conference call from the main investor relations page on Gruppo Campari’s website, at http://investors.camparigroup.com.
A recording of the conference call will be available from 22.00 (CET) on Tuesday 11 November until Tuesday 18 November 2008.
To hear it, please call +44 20 713 69233 (access code: 11523283#).

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The Manager in charge of preparing Davide Campari-Milano S.p.A.’s financial reports, Paolo Marchesini, certifies - pursuant to article 154 bis, paragraph 2 of the Consolidated Law on Financial intermediation (Legislative Decree 58/1998) - that the accounting disclosures in this statement correspond to the accounting documents, ledgers and entries.

Publishing date: 
11 Nov 2008
Last updated May 27 2013