Campari announces 2010 Half Year results


  • Sales: € 515.7 million (+16.7%, organic growth +8.7%)
  • Contribution after A&P: € 209.5 million (+18.5%, organic growth +10.4%, 40.6% of sales)
  • EBITDA before one-offs: € 128.6 million (+17.9%, organic growth +13.7%, 24.9% of sales)
  • EBIT before one-offs: €116.0 million (+17.9%, organic growth +14.0%, 22.5% of sales)
  • Group’s net profit: € 69.3 million (+15.2%)

Milan, August 4, 2010 - The Board of Directors of Davide Campari-Milano S.p.A. approved the results for the first half ending 30 June 2010.

In the first semester of 2010 Gruppo Campari achievedvery strong results, delivering significantgrowth across all performance indicators, especially due to organic growth. The business benefited from (i) a very good consumption momentum across key brand and market combinations, (ii) the consolidation of the Wild Turkey acquisition and (iii) an easy comparison base versus last year’s first half, which was hit by the credit crunch and destocking activities. Driven by a favourable sales mix,all operating profit indicators posted strong growth, notwithstanding a considerable increase in marketing spending.

Bob Kunze-Concewitz, Chief Executive Officer:‘Our performance in the first half of 2010 was very positive with significant growth across all key indicators. Looking forward to the remainder of the year, we have a balanced view of risks and opportunities. Specifically, our continued good consumption momentum across key brand and market combinations should help cushion the impact of tougher comps in terms of cost of goods and a weaker sales mix driven by seasonality. Whilst volatility might impact trading across coming quarters, we remain reasonably optimistic about our full year prospects’.


In the first half of 2010, Group sales totalled € 515.7 million (+16.7%, +8.7% organic growth,+2.0% exchange rate effect and +6.1% perimeter effect, the latter mainly due to the acquisition of Wild Turkey).

Gross margin increased to € 299.6 million, up 20.4%, or 58.1% of sales, mainly thanks to a favourable sales mix driven by spirits’ double-digit growth.
Contribution after A&P (gross margin after A&P)was up by 18.5% to € 209.5million (+10.4% organic growth), or 40.6% of sales.
EBITDA before one-offs was up by 17.9% to € 128.6 million (+13.7% organic growth), or 24.9% of sales.
EBITDA reached € 127.0 million, an increase of 18.1%.
EBIT before one-offs rose by 17.9% to € 116.0 million (+14.0% organic growth), or 22.5% of sales.
EBIT reached € 114.4 million, an increase of 18.2%.
Profit before tax and minority interests reached € 97.7 million (+17.3%; +16.0% at constant exchange rates).
The Group net profit rose to € 69.3 million, anincrease of 13.6% at constant exchange rates and +15.2% at actual exchange rates.

As of 30 June 2010, after payments of € 34.6 million for dividends and negative exchange rate impact of € 32.8 million versus 31 December last year, net financial debt stood at€ 656.2 million (€ 630.8 million as of 31 December 2009).


Sales of spirits (76.9% of total sales, up from 72.3% in the first half 2009) grew +24.2%, the combined result of organic growth of +13.9%, a positive exchange rate effect of +2.5% and a positive perimeter effect of +7.8%.

Campari brand sales increased by +10.3% at constant exchange rates (+13.3% at actual exchange rates), thanks to the positive performances in key European markets and a strong recovery in Brazil. SKYY sales grew by +7.6% at constant exchange rates (+8.5% at actual exchange rates), driven by a favourable comparison base versus last year’s first half, a positive performance of the whole SKYY franchise in the US and continued growth in key international markets. Aperol confirmed its very strong momentum (+34.7% at constant exchange rates) in Italy and in international markets (particularly Germany and Austria). Campari Soda registered a slight decrease in the first half of 2010 (-0.6%). The Brazilian brands’ posted a significant sales growth, thanks to the successful execution of the new commercial policy and a favourable comparison base versus the corresponding period last year. GlenGrant achieved a positive performance (+18.1% at constant exchange rates), while Ouzo 12and Cynar results were in line with last year trends.

Wines, which accounted for 11.5% of total sales,decreased -1.3%, due to the combination of anegative organic performance of -4.0%, a positive perimeter effect of +1.8% and a positive exchange rate effect of +0.9%. Cinzano brand registered positive results: Cinzano sparkling wines sales increased by 3.6%(+3.8% at constant exchange rates), thanks to a positive performance in Italy and Russia; and Cinzano vermouth sales grew by 3.3% (+5.2% at constant exchange rates), mainly thanks to a recovery in the key Russian market. Sella& Mosca sales decreased by 5.2%, while Riccadonnasuffered a temporary slow-down due to its transition to the newly established distribution platform in the key Australian market.

Soft drinks (10.5% of total sales) recorded a negative variation of -5.1%, attributable to the weak performance of the soda range and mineral waters (-6.8%) which were impacted by unfavourable weather conditions whilst Crodino (-4.3%) was impacted by softness in the day bars channel.

Looking at sales by region in the first half 2010, sales in the Italian market (39.6% of total Group sales, down from 45.2% in the first half 2009) recorded an increase of +2.2%, thanks to organic growth (+2.9%), partly offset by a negative perimeter effect of -0.7%.

Sales in Europe, excluding Italy, (20.9% of consolidated sales) increased by +11.9%, thanks to positive trading both in Western and Eastern European markets, demonstratingpositive organic growth of +11.0%, a positive perimeter effect of +0.5% and a positive exchange rate effect of +0.4%.

The Americas (34.1% of total sales) posted overall growth of +46.1%, driven by a positive organic increase of +24.7%, a positive exchange rate effect (+6.4%) and apositive perimeter effect (+15.0%), the latter due to the acquisition of Wild Turkey. In the Americas, the USmarket registered an organic increase of +13.3%, mainly driven by a favourable comparison against last year’s first half. There was a positive exchange rate effect of 0.2% and positive perimeter effect of +19,5%. InBrazil, organic sales grew by 61.3%, thanks to a return to regular trading after the full acceptance of the new commercial policy and a favourable comparison base. Performance in Brazil was also positively affected by a perimeter effect of +1.7% and a significant exchange rate effect (+36.1%).

Sales in the rest of the world (including duty free sales), which accounted for 5.4% of total sales, grew by +9.6% overall, driven by a positive perimeter effect of +37.6%, a positive exchange rate effect of +2.2% and a negative organic change of 30.2% mainly due to its transition to the newly established distribution platform in the key Australian market.


Merger of Campari Italia S.p.A. into Davide Campari-Milano S.p.A. On August 4, 2010, the Board of Directors of Davider Campari-Milano S.p.A. approved the draft document relating to the proposed merger of Campari Italia S.p.A. into Davide Campari-Milano S.p.A. The objective of the merger is to simplify the Group’s organizational structure and achieve operational efficiencies by integrating the two companies’ production and distribution activities. As Davide Campari-Milano S.p.A. holds 100% of the share capital of Campari Italia S.p.A., the merger does not determine any share exchange ratio. Therefore, there will be no effects on the shareholders. Moreover, it should be noted that Davide Campari-Milano S.p.A. will not modify its share capital and the company by-laws will remain unchanged.


Buyout of the remaining 20% stake in Cabo Wabo. On July 30, 2010, an agreement was signed with the minority shareholder of Cabo Wabo for the anticipated exercise of the put/call options relating to the remaining 20% stake in Cabo Wabo. Gruppo Campari bought the controlling (80%) stake in Cabo Wabo in 2008. The price paid for the purchase of the 20% stake was US$ 11.0 million. Moreover, based on the agreement, an estimated earn-out of US$ 4.0 million is expected to be paid to the selling shareholder in the three years following the closing of the deal.

Manufacturing and distribution rights of Cinzano in Argentina. On July 23, 2010, Gruppo Campari signed an agreement for the anticipated termination of the contract entered by Davide Campari-Milano S.p.A. with Cepas Argentina S.A. in 2000, following the acquisition of the Cinzano brand. Based on this contract, Gruppo Campari granted Cepas Argentinas S.A. the manufacturing and distribution rights for Cinzano in Argentina until 2026. Gruppo Campari agreed to pay € 11 million, by August 31, 2010, for the recovery of Cinzano production and distribution rights. As of September 2010 the distribution and, subsequently, the manufacturing activities will be taken over by Sabia S.A., an Argentinean company acquired by Gruppo Campari in 2008 and now wholly owned.

Noteholders meeting. On August 2, 2010, the holders of Notes issued by Davide Campari-Milano S.p.A. on July 16, 2003, exclusively placed among US institutional investors, were called to approve amendments to some terms of the Note purchase agreement. The amendments are aimed at authorizing the company, in case of significant acquisitions, to temporarily increase the indebtedness ratio above the threshold allowed by the agreement, against the payment of a higher interest rate for the correspondent periods. It should be noted that the two US private placements issued by the US subsidiary Redfire in 2002 and 2009 were also aligned to the new terms.

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 1.00 pm (CET) today, Wednesday, 4 August 2010, Campari’s management will hold a conference call to present the Group’s 2010 half year results to analysts, investors and media. To participate, please dial one of the following numbers:

  • from Italy: 02 8058 811
  • from abroad: +44 203 147 47 96

The presentation slides can be downloaded before the conference call from the main investor relations page on Gruppo Campari’s website.

A recording of the conference call will be available from Thursday, 5 August until Wednesday, 11 August 2010.

To listen to it, please call the following number:

  • from Italy: 02 72495
  • from abroad: +44 207 0980 726

(access code: 726#).

Publishing date: 
04 Aug 2010
Last updated May 27 2013