Campari announces 2011 First Quarter results
- Sales: € 268.4 million (+14.9%, organic growth +10.5%)
- Contribution after A&P: € 109.2 million (+16.5%, organic growth +10.6%, 40.7% of sales)
- EBITDA before one-offs: € 69.4 million (+17.4%, organic growth +11.5%, 25.8% of sales)
- EBIT before one-offs: €61.6 million (+17.9%, organic growth 11.4%, 23.0% of sales
- Group pre-tax profit: € 50.5 million (+16.6%)
- Net financial debt at € 618.7 million (down from € 677.0 million at 31 December 2010)
Milan, May 12, 2011 - The Board of Directors of Davide Campari-Milano S.p.A. approved the results for the first quarter ending 31 March 2011.
Gruppo Campari achieved strong overall results, in a small quarter, across all performance indicators, thanks tosteady organic growth and positive contribution of perimeter and exchange rates effects.
Bob Kunze-Concewitz, Chief Executive Officer:‘Although the first quarter is a small one for Gruppo Campari, we are pleased to have had a strong start to the year with solid double digit growth across all key indicators despite a tough comparable base and a late Easter. All of our growth engines (aperitifs in Europe and South America, vodka in the Americas and the bourbon range in the US and Australia) performed well and we also benefitted from the strengthened route-to-market as well as the anticipation of shipments in Russia, ahead of the import license renewal. Looking forward, we expect our key growth drivers to continue delivering positive performances and we remain committed to sustained investments in marketing and innovation, particularly in the next two quarters. We remain optimistic about our full year prospects based on a balanced view of risks and opportunities.’.
In the first quarter 2011 Group sales totalled € 268.4 million showing a reported growth of +14.9% and organic growth of +10.5% (+14.5% in first quarter of 2010).Exchange rates and perimeter effects were+1.9% and +2.5% respectively, the latter mainly due to the acquisition of Frangelico, Carolans and Irish Mist.
Gross margin increased to € 156.1 million, up +16.8%, or 58.2% of sales.
Advertising and promotion (A&P) was up by+17.7% to € 46.9 million, or 17.5% of sales.
Contribution after A&P (gross margin after A&P)was up by +16.5% to € 109.2million (+10.6% organic growth), or 40.7% of sales.
EBITDA before one-offs was up by +17.4% to€ 69.4 million (+11.5% organic growth), or 25.8% of sales.
EBITDA reached € 68.5 million, an increase of +17.0%.
EBIT before one-offs rose by +17.9% to € 61.6 million (+11.4% organic growth), or 23.0% of sales.
EBIT reached € 60.8 million, an increase of+17.4%.
Group pre-tax profit reached € 50.5 million (+16.6%; +10.6% at constant exchange rates).
As of 31 March 2011, net financial debt stood at€ 618.7 million (€ 677.0 million as of 31 December 2010) thanks to positive generation of cash flow and a positive exchange rates effect.
Consolidated sales of first quarter 2011
Looking at sales by region in the first quarter, sales in the Italian market (37.7% of total Group sales, down from 44.6% in the first quarter of 2010) recorded an organic change of -2.9%. A late Easter in 2011, compared to 2010, and consequent shift of marketing activities, negatively affected the performance particularly of Campari Soda, Crodino, GlenGrant and the sparkling wines, in part offset by the positive trends in Aperol and Campari sales.
Sales in the rest of Europe (22.8% of consolidated sales) increased by a very strong +39.7%, driven bystrong organic growth of +32.2%, a positive perimeter effect of +6.3% and a positive exchange rate effect of+1.2%. Notably strong organic performance was driven byGermany (+42.1%), thanks to the positive momentum across the entire portfolio and an extraordinary performance of Aperol, and Russia (+170.8%), mainly thanks to a rebound of consumption and an anticipation of shipments ahead of renewal of import licenses. Switzerland, Austria andSpain performed also well driven by aperitifs.
The Americas (31.3% of total sales) posted overall growth of +16.4%, driven by an organic increase of +10.3%, a positive perimeter effect of +3.2%, due to the newly acquired Frangelico, Carolans and Irish Mist brands, and apositive exchange rate effect of +2.9%. In the Americas, theUS market registered an organic increase of +9.5%, a positive perimeter effect of +2.5% and apositive exchange rate effect of +1.3%. InBrazilorganic sales declined by -8.7%, against a tough comparison base (+335.8% in first quarter of 2010), offset by a perimeter effect of +1.2% and an exchange rate effect of +8.5%. Sales in other Americas grew by +78.7%, due to an organic growth of +65.5%, mainly driven by Argentina, aperimeter effect of +13.3%, attributable to the impact Frangelico, Carolans and Irish Mist brands, and an exchange rate effect of -0.1%.
Sales in the rest of the world (including duty free), which accounted for 8.2% of total sales, grew by +64.4%overall, due to a positive organic change of +44.9%, driven by the transition to the newly established distribution platform in the key Australian market, a positive perimeter effect of +5.6%, and a positive exchange rate effect of +13.9%.
Looking at sales by business segment, spirits (76.9% of total sales) grew +16.0%, the combined result of organic growth of +10.5%, a positive perimeter effect of +3.2% and apositive exchange rate effect of +2.3%. Campari brand sales increased by +3.5% at constant exchange rates (+5.4% at actual exchange rates), thanks to positive performances in the key German and Italian markets. SKYYsales grew by +8.4% at constant exchange rates (+10.3% at actual exchange rates), driven by an increase in the US, both in Infusions and in SKYY core, and steady growth in key international markets. Aperol continued its very strong momentum (+57.1% at constant exchange rates) in Italy and in international markets (particularly Germany and Austria).Wild Turkey franchise sales grew by +43.1% overall at constant exchange (+52.3% at actual exchange), driven by thepositive performance of all the acquired brands in key markets (Wild Turkey core in US, Australia and Japan, Wild Turkey ready-to-drink in Australia and New Zealand, American Honey in US) as well as easy comparison base in Australia due to the transition to direct distribution in first half of 2010. Thetequilas grew by +27.8% driven by good performance of recently re-launched Espolon. Frangelico,Carolans and Irish Mist recorded a flat organic performance in shipments and a positive trend in depletions.Brazilian brands recorded a decrease of -15.7% at constant exchange (-7.7% at actual exchange), against a tough comparison base. A decline was also recorded byGlenGrant (-6.8% at constant exchange) and Campari Soda (-6.2% at constant exchange), which were negatively affected by a late Easter in 2011, compared to 2010, and consequent shift of marketing activities. Both brands maintain a strong leadership in key Italian market.
Wines, which accounted for 12.8% of total sales,increased +32.7%, due to the combination of a strongorganic performance of +29.8%, a perimeter effect of +1.6% and an exchange rate effect of +1.3%.
Cinzano vermouths grew by +114.5% at constant exchange (+115.1% at actual exchange) driven largely by a rebound in the key Russian market, in addition to the positive effect of the Argentine market. Cinzano sparkling winessales increased by +3.6% at constant exchange (+4.2%at actual exchange), thanks to a positive performance in Russia, which offset a slight decline in Germany and Italy, the latter negatively influenced by late Easter in 2011 compared to 2010. Other sparkling wines grew by +45.6% overall, driven by strong performance of Riccadonna, thanks to a return to normalised sales trend in key Australian market and strong sales ofMondoro in Russia, in part offset by soft performance ofOdessa. Still wines (includingSella&Mosca, Enrico Serafino,Teruzzi&Puthod and agency brands) had a slow start in a small quarter (-1.6% overall change in the first quarter 2011).
Soft drinks (9.6% of total sales) decreased of -7.0%, due to a decline in Crodino sales (-9.0%). This performance, which is not reflected in the sell out trend, is attributable to late Easter and consequent shift of marketing activities in the key Italian market, where the brand maintains a strong leadership.
The Executive responsible for 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 - that the accounting disclosures in this statement correspond to the accounting documents, ledgers and entries.
Analyst conference call
At 1:00 pm (CET) today, Thursday, May 12, 2011, Campari’s management will hold a conference call to present the Group’s 2011 first quarter results to analysts and investors. To participate, please dial one of the following numbers:
- from Italy: 02 8058 811 begin_of_the_skype_highlighting 02 8058 811 end_of_the_skype_highlighting
- from abroad: +44 1212 818003 begin_of_the_skype_highlighting +44 1212 818003 end_of_the_skype_highlighting
The presentation slides can be downloaded before the conference call from the main investor relations page on Gruppo Campari’s website, at
A recording of the conference call will be available from Thursday, May 12 until Wednesday, May 18, 2011.
To listen to it, please call the following number:
- from Italy: 02 72495
- from abroad: +44 1212 818005
(access code: 765#).
* * *
Media conference call
At 2:30 pm (CET) today, Thursday, May 12, 2011, Bob Kunze-Concewitz, Gruppo Campari’s CEO, will hold a conference call in English to present the Group’s 2011 first quarter results to the media. To participate, please dial one of the following numbers:
- from Italy: 02 8058 811
- from abroad: +44 1212 818003