2009 First Half Results


  • Sales grew to € 441.8 million (+2.5%, organic growth -3.0%)
  • Contribution after A&P to € 176.9 million (+9.0%, organic growth +2.2%, 40.0% of sales)
  • EBITDA before one-offs up to € 109.1 million (+8.7%, organic growth +1.5%, 24.7% of sales)
  • EBIT before one-offs up to € 98.4 million (+8.4%, organic growth + 0.8%, 22.3% of sales)
  • Group net profit € 60.1 million (+0.5%)

Milan, August 6, 2009 - The Board of Directors of Davide Campari-Milano S.p.A. approved the results for the first half ending 30 June 2009.

Campari results in the first half 2009 were overall positive with key indicators rising, thanks to improved trading conditions in the second quarter, the integration of acquisitions and continuous cost containment. While distributors reduced stock in the first half, the second quarter saw improvement in key brand/market combinations. Gruppo Campari brands’ underlying consumption in the first half remained positive outperforming the market in key regions.

Bob Kunze-Concewitz, Chief Executive Officer: “The reduction of destocking pressure in key developed markets gives us confidence that the latter’s performance will mirror more closely the positive consumption trend of our key brands going forward. Nonetheless, we will remain vigilant, maintaining our focus on cost containment, working capital and cash generation throughout the year. Thanks to the successful integration of all newly acquired businesses, we will be able to more fully exploit their potential in the second half.”.

Consolidated results for the first half of 2009

  1 January -
30 June 2009
(€ millions)
 1 January -
30 June 2008
(€ millions)
at actual
exchange rates
at constant
exchange rates
Net sales   441.8   431.2    +2.5%    +0.5% 
Contribution after A&P (1)    176.9   162.2    +9.0%    +5.7% 
EBITDA before one-offs    109.1   100.4   +8.7%   +5.5% 
EBITDA   107.5   102.0    +5.4%    +2.2% 
EBIT before one-offs    98.4   90.8    +8.4%    +4.8% 
EBIT   96.8   92.5    +4.7%    +1.2% 
Group net profit    60.1   59.8   +0.5%   -2.3% 

(1) EBIT before SG&A.

In the first half 2009, Group sales totalled € 441.8 million (+2.5%, -3.0% organic growth, +2.0% exchange rate effect and +3.5% perimeter effect, the latter due to the acquisitions of Wild Turkey, Destiladora San Nicolas, Sabia and new distribution agreements of Licor 43 in Germany and Cointreau in Brazil).

Contribution after A&P (gross margin after distribution costs and A&P) was up by 9.0% to € 176.9 million (+2.2% organic growth), or 40.0% of sales.
EBITDA before one-offs was up by 8.7% to € 109.1 million (+1.5% organic growth), or 24.7% of sales.
EBIT before one-offs was up by 8.4% to € 98.4 million (+0.8% organic growth), or 22.3% of sales.
EBITDA was € 107.5 million, an increase of 5.4%.
EBIT was € 96.8 million, an increase of 4.7%.
Profit before taxes and minority interests was € 83.3 million, a decrease of 0.5%.
The Group net profit was € 60.1 million, an increase of 0.5%.

As of 30 June 2009 net financial debt stood at € 674.8 million (€ 326.2 million as of 31 December 2008) after payment of the Wild Turkey acquisition (€ 417.5 million) and the Odessa acquisition (€ 14.2 million) and making provisions for potential put options and earn outs on minority stakes for € 23.9 million.

Sales variation in spirits (72.3% of total sales) was +4.9%, the combined result of organic decrease of 2.2%, a positive exchange rate effect of 2.8% and a positive perimeter effect of 4.3%.

The Campari brand sales declined by 6.6% at constant exchange rates, almost entirely attributable to destocking in Brazil. SKYY sales grew by 0.5% at constant exchange rates (+13.2% at actual exchange rates). This performance was negatively affected by the tough comparison base in the USA (relaunch of SKYY and launch of SKYY Infusions in the second quarter of 2008). The trend in international markets continues to be extremely positive. Aperol confirmed its excellent growth trend (+32.0% at constant exchange rates) in Italy and in international markets. Campari Soda finished the first half with a positive performance of 2.5%. The Brazilian brands’ sales were heavily impacted by the increase in the excise duties and wholesalers’ de-stocking (decline of 20.9% at constant exchange rates), notwithstanding the continuing good consumption trend and the improved performance in the second quarter. X-Rated registered a good growth (+7.2% at constant exchange rates). Glen Grant declined by 3.2% at constant exchange, entirely due to a declining Scotch whisky category in Italy.

Wines, which accounted for 13.5% of total sales, registered a decrease of 0.4%, due to the combination of negative organic performance of 3.7%, a positive exchange rate effect of 0.1% and a positive perimeter effect of 3.2%. The segment’s negative performance was driven by Cinzano vermouth (-16.2% at constant exchange rates) due to heavy de-stocking in Russia. Cinzano sparkling wines were positive (+8.1% at constant exchange rates) and, among the still wines, Sella & Mosca registered a decrease of 6.8% at constant exchange rates due to destocking in Italy and key export markets. Riccadonna was strong (+25.8% at constant exchange rates) thanks to a very good performance in the key Australian market.

Soft drinks (12.9% of total sales) recorded a negative variation of 2.7%, entirely attributable to the weak performance of the soda range and mineral waters. Crodino registered a positive performance (+2.0% at constant exchange rates).

Looking at results by region in first half 2009, sales in the Italian market (45.2% of total Group sales) recorded an increase of 0.8%, thanks to good organic growth (+1.3%), partly offset by a negative perimeter effect of 0.5%. Sales in Europe (21.8% of consolidated sales) increased by 6.3%, driven by a positive organic performance of 2.2% and a positive perimeter effect of 4.1%.
The Americas (27.3% of total sales) posted a negative organic change of 14.7%, partially offset by a positive exchange rate effect (+6.4%) and a positive perimeter effect (+7.3%) due to the acquisitions of Wild Turkey, Destiladora San Nicolas and Sabia. In the Americas, the US market registered an organic decrease of 15.1%, offset by a positive exchange rate effect of 12.4% and positive perimeter effect of 4.3%. In Brazil, sales registered an organic decrease of 20.9%, a positive perimeter effect of 1.4% and a negative exchange rate effect of 8.9%. Sales in the rest of the world (including duty free sales), which accounted for 5.8% of total sales, grew by 22.1% overall, driven by a positive perimeter effect of 15.4% and an organic growth of 2.9%.

Stock options.
Pursuant to article 84-bis of Consob resolution no. 11971/99 (Regulations for Issuers), it should be noted that the Board of Directors has approved today the issuance of stock options for 2009 in accordance with the stock option plan approved by the Shareholders’ meeting held on 30 April 2009. The information regarding the issuance of stock options is disclosed in the document “Issuance of stock options for 2009 in accordance with the stock option plan approved by the Shareholders’ meeting held on 30 April 2009” available on the website www.camparigroup.com under the Corporate Governance section.

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 Legislative Decree 58/1998 (Consolidated Law on Financial intermediation) - that the accounting disclosures in this statement correspond to the accounting documents, ledgers and entries.

Please note that at 12,00 pm (CET) today, Thursday 6 August 2009, Campari’s management will hold a conference call to present the Group’s 2009 first half results to analysts, investors and media.
To participate, please dial one of the following numbers:

  • from Italy: 800 900 015 (toll free number)
  • from abroad: +39 02 3700 8220

Access code: 668 983#

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 Friday 7 August until Friday 14 August 2009.
To hear it, please call +44 20 713 69233 (access code: 20475257#).

Publishing date: 
06 Aug 2009
Last updated May 27 2013