Campari announces 2012 Year Results

Positive results in a very difficult environment thanks to U.S. and strengthened route to market
Transformational year on perimeter driven by the acquisition of Lascelles deMercado which will help further improve brand and market mix


  • Sales +5.2% (organic change +2.8%) with strong growth across U.S. and newly established sales platforms in Australia, Argentina and Russia helping mitigate difficulties in the Group’s traditional markets (Italy, Germany and Brazil)International business at 70.8% of consolidated net sales (from 68.4% in 2011). Spirit segment at 76.7% of consolidated net sales (from 76.5% in 2011)
  • EBITDA pre one-offs +2.6% (organic change -0,4%) impacted by unfavourable sales mix and continued investment in route-to-market to support future expansion
  • Group net profit: € 156.7 million, -1.6%, impacted by one-off’s mainly related to acquisition (Group net profit Adjusted1: € 167.7 million, +0.1%)
  • Very positive year in terms of external growth thanks to the Group’s successful entrance into the rum category through the highly strategic Lascelles DeMercado acquisition
  • Net debt of € 869.7 million, positively impacted by healthy cash flow generation
  • 2012 proposed dividend confirmed at 2011 level (€ 0.07 per share)

Bob Kunze-Concewitz, Chief Executive Officer: ‘2012 results were overall satisfactory considering the very difficult market context and the continued steady progress in improving our brand and market mix. Regarding the existing business in 2012, adverse market conditions in the Group’s traditional markets, particularly Italy, Brazil, Germany, affected our aperitifs and still wine portfolio but were compensated by strong growth in newly established sales platforms in Australia, Argentina and Russia in combination with the continued strong performance of the overall US business. Moreover, we benefitted from healthy cash flow generation thanks to good working capital management. Looking forward, we expect 2013 to be another challenging year due to heightened macroeconomic difficulties in Eurozone markets. However, continued positive momentum in the US and the Pacific, coupled with improvements in Latin America, stronger growth in Eastern Europe, particularly in Russia, as well as a strong innovation pipeline and heightened brand building in our core categories will help compensate European weakness. Moreover, we expect to further strengthen our Brand portfolio and route to market in the Americas and the Pacific thanks to our transformational acquisition of Lascelles deMercado. Net in net, looking forward we are well equipped to tackle the awaiting challenges.’.

Milan, March 7, 2013 - The Board of Directors of Davide Campari-Milano S.p.A. (Reuters CPRI.MI - Bloomberg CPR IM) approved today the draft Statutory Financial Statements and its consolidated financial results for the year ended 31 December 2012.


  • Sales: € 1,340.8 million (+5.2%, organic growth +2.8%)
  • Contribution after A&P: € 532.3 million (+5.3%, organic growth +2.1%, 39.7% of sales)
  • EBITDA pre one-offs: € 337.4 million (+2.6%, organic change -0.4%, 25.2% of sales)
  • EBIT pre one-offs: € 304.7 million (+2.0%, organic change -1.1%, 22.7% of sales)
  • Group net profit: € 156.7 million (Group net profit Adjusted1: € 167.7 million)
  • Net financial debt at € 869.7 million as of 31 December 2012 (€ 636.6 million as of 31 December 2011), after acquisitions for a total value of € 317.3 million
  • 2012 proposed dividend confirmed at 2011 level (€ 0.07 per share)


In 2012 Group sales totalled € 1,340.8 million showing a reported growth of +5.2% and an organic growth of +2.8% (+8.8% organic growth in 2011). The exchange rates effect was positive at +2.2%. The perimeter effect was positive +0.3%, mainly driven by new distribution agreements. It should be noted that the Lascelles deMercado acquisition was consolidated as of the closing date on 10 December 2012.
Gross margin
increased to € 769.5 million, up +4.7%, or 57.4% of sales.
Advertising and promotion spending (A&P)
was up by +3.5% to € 237.2 million, or 17.7% of sales (18.0% of sales in 2011), reflecting continued commitment to brand building in core markets.
Contribution after A&P
(gross margin after A&P) was up by +5.3% to € 532.3 million (+2.1% organic growth), or 39.7% of sales.
Structure costs
, i.e. selling, general and administrative costs, increased by +10.1%, or 17.0% of sales, reflecting the strengthened route to market and the tail end of the corporate structure build up.
Negative operating one offs amounted to € 17.2 million
, mainly attributable to the transaction costs related to the Lascelles deMercado acquisition as well as some other provisions.
EBITDA pre one-offs
was up by +2.6% to € 337.4 million (-0.4% organic change), or 25.2% of sales.
reached € 320.2 million, a decrease of -1.7%, or 23.9% of sales.
EBIT pre one-offs
rose by +2.0% to € 304.7 million (-1.1% organic change), or 22.7% of sales.
EBIT reached € 287.5 million, a reduction of -2.7%, or 21.4% of sales.
Net financing costs
stood at € 48.7 million, up from € 43.2 million in 2011, driven by the Group higher average net debt related to the Lascelles deMercado acquisition.
One off financial costs of € 2.6 million
, related to the bridge loan for the LdM acquisition (subsequently unwound following the Euro bond issue).
Group pre-tax profit
reached € 236.2 million, down by -5.8%.
Group net profit
reached € 156.7 million, down by -1.6% (-6.9% at constant exchange rates), negatively impacted by one-off’s. Rectified for all operating, financial and fiscal one-offs, and related fiscal effects, the Group net income reached € 167.7 million, or 12.5% of sales, an increase of +0.1%.

As of 31 December 2012, net financial debt stood at € 869.7 million (€ 636.6 million as of 31 December 2011), with healthy cash flow generation helping to counter the Lascelles deMercado acquisition impact accounting for a total value of € 317.3 million.


Looking at sales by region in 2012, the Americas (34.7% of total Group sales) posted an overall growth of +8.8%, with an organic increase of +5.6%, thanks to the strong growth across all markets with the exception of Brazil, a perimeter effect of -0.3%, and an exchange rate effect of +3.6%. In the U.S. (21.9% of total Group sales) sales registered an organic increase of +8.6%, driven by continued strong momentum of key spirits brands, notably Wild Turkey and SKYY franchises, Carolans, Espolón, Cabo Wabo and Campari, a perimeter effect of -0.7% (due to the termination of the Cutty Sark agency) and an exchange rate effect of +8.7%. Sales in Brazil (6.8% of total Group sales) registered a negative organic performance of -7.9%, and a negative exchange rate effect of -6.7%. The performance was impacted by a negative trend in local brands, whilst SKYY Vodka continued to growth strongly, outperforming the market and benefitting from the launch of SKYY Infusions. Sales in the other Americas (6.0% of total Group sales) showed an organic growth of +15.6%, mainly thanks to a strong performance in Argentina (Cinzano, Old Smuggler and Campari) despite the difficulties imposed by import restrictions, and continued good performances in Canada (Carolans, SKYY Vodka and Campari) and Mexico (SKYY ready-to-drink’s). Perimeter and exchange rate effects in the Other Americas were +0.5% and +0.4% respectively.

The Italian market (29.2% of total Group sales) recorded a total negative sales development of -2.9%, attributable to an organic performance of -3.3% and a positive perimeter effect of +0.5%. The organic performance reflected to a worse than expected market environment in Q4, driven by low consumer confidence and trade destocking. In particular, Campari and Aperol were only down by -0.8% and -1.1% respectively in Italy, after record sales in 2011, proving the resiliency of the long aperitifs business which outperformed all other categories. The rest of the business, with the exception of a strong growth in SKYY Vodka, declined due to the overall slowdown in consumption. Still wines continued to suffer from very poor trading in the restaurants channel, and Crodino was hit by the challenging environment and continued poor trading conditions in the day bars channel and the off trade.

Sales in the rest of Europe (25.8% of total Group sales) increased by +5.3%, driven by a positive organic performance of +3.4%, a positive perimeter effect of +0.8% and a positive exchange rate effect of +1.0%. The organic growth was driven by contrasting results across the region: Germany registered a decrease of -9.1%, as a consequence of a commercial dispute which affected Aperol and Campari. Russia was up +61.0% showing strong results, particularly in the high seasonality fourth quarter, driven by double digit growth in core Cinzano vermouth and Cinzano and Mondoro sparkling wines. Other European markets (particularly Austria, Switzerland and Belgium) were positively impacted by a good growth of Aperol in all markets and SKYY Vodka.

Sales in the rest of the world (including Global Travel Retail), which accounted for 10.4% of total Group sales, grew by +19.8% overall, with a positive organic change of +11.9% and a positive exchange rate effect of +7.9%. Sales performed strongly, driven by the key Australian market which continued to deliver generating +15.2% organic growth, thanks to positive momentum across the entire portfolio, particularly the core Wild Turkey franchise. A very positive development was also achieved in the region’s other key markets, including China, South Africa and Nigeria.

Looking at sales by segments, spirits (76.7% of total sales) grew by +5.5%, the combined result of positive organic growth of +2.9% and a positive exchange rate effect of +2.5%.

Campari brand sales increased by +0.5% at constant exchange rates, negatively impacted by a decline in Germany, a flattish performance in Italy and Brazil and compensated by good traction in international markets, in particular in the U.S., Argentina, Russia and Nigeria. Aperol registered a negative organic performance of -2.2%, driven by a disappointing performance in Germany throughout 2012 due to commercial dispute with a key client in the high seasonality period and the softer performance in Italy impacted by a tough environment, especially in the off trade. Importantly, Aperol continued to show strong growth in international markets. Overall organic growth of Aperol excluding Germany was +6.1%. SKYY sales achieved an organic growth of +9.4%, driven by a positive performance in the US thanks to SKYY Infusions’ continued success and improved momentum behind core. Strong momentum continued in key international markets with double digit growth in Brazil, Canada, Germany and Italy. The Wild Turkey franchise registered an organic growth of +19.2%, thanks to a continued strong performance across the whole franchise in key markets. The Wild Turkey core brand grew by +5.7% thanks to a positive performance across all markets. The Wild Turkey ready-to-drink registered an organic growth of +14.3% driven by core Australia. Moreover, American Honey grew by +45.6%, driven by U.S. and Australia. The Tequila portfolio registered a strong organic growth of +23.7%, driven by both Espolón and Cabo Wabo in the key U.S. market. Campari Soda declined by -4.9%, affected by the adverse economic environment and poor trading conditions in the day bars channel and off trade in Italy. The Brazilian brands were down by -12.7% at constant exchange rates, showing a stabilising trend in the fourth quarter 2012 after a very weak start of year, due to a general consumption slowdown which particularly impacted mainstream brands. GlenGrant registered a negative organic performance of-6.5%, mainly impacted by the strong decline in Italian whisky market. Frangelico and Carolans registered an organic performance of +0.9%, with Carolans growth in core U.S. market in part offset by Frangelico’s weakness.

Wines, which accounted for 14.6% of total sales, grew overall by +6.1%, driven by the combination of a positive organic growth of +3.3%, a perimeter effect of +1.5% and an exchange rate effect of +1.3%.

Cinzano vermouths registered an organic growth of +13.6%, driven by positive performance in Russia and Argentina, reaping the benefits of the strengthened route-to-market, offsetting category weakness in the rest of developed markets. Cinzano sparkling wines sales registered a negative organic performance of -7.8%, with the double digit performance in Russia not able to compensate soft sales in Germany and Italy due to reduced Christmas promotions. Other sparkling wines (including Riccadonna, Odessa and Mondoro) grew organically by +22.1% driven by positive performances across the portfolio, whilst still wines (mainly Sella&Mosca, Enrico Serafino and Teruzzi&Puthod) declined organically by -5.7%, driven by the weakness in the Italian restaurants channel. The addition of new wine distribution agreements contributed positively to the overall wine portfolio performance.

Soft drinks (7.4% of total sales) grew by +1.3%, driven by an organic performance of +1.2%, thanks to the good performance of the Lemonsoda range in Italy more than offsetting the decrease of Crodino (-2.7%), and a positive exchange rate effect of +0.1%.


Dividend. The Board of Directors has voted to propose to the Shareholders' meeting a full year dividend per share of € 0.07 for 2012 (in line with the 2011 dividend). The cash dividend will be payable on May 23, 2013 (the coupon detachment date will be 20 May 2013 pursuant to the Borsa Italiana calendar with a record date of 22 May 2013). The Board of Directors has agreed to convene the Annual Shareholders Meeting on 30 April 2013 to approve the 2012 Financial Statements.

Own shares. The Board of Directors has approved a resolution to be presented to the Shareholders’ meeting authorising the purchase and/or sale of own shares, mainly to be used to service the stock option plans. The authorisation concerns the purchase and/or sale of shares, which, including existing own shares, shall not exceed a maximum of 10% of the share capital. The authorisation will remain valid until 30 June 2014. The unit price for the purchase and/or sale of own shares will not differ by more than 25% (whether upwards or downwards) from the weighted average price in the three stock market trading sessions prior to each transaction.

Stock options. The Board of Directors has approved a resolution to be presented to the Shareholders’ meeting approving a stock option plan pursuant to Art. 114-bis of the Consolidated Law on Financial Intermediation and in accordance with the stock option master plan approved by the Board of Directors of 18 March 2009 and by the Shareholders’ meeting of 30 April 2009, that does not concern the company’s directors. The company will in due course and pursuant to applicable law (article 84-bis, Consob Regulation no. 11971/99) disclose an information document regarding the new stock option plan.

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.
The consolidated results and the draft financial statements of Davide Campari-Milano S.p.A. as of 31 December 2012 are currently under audit, to date not yet completed.


At 1:00 pm (CET) today, Thursday, March 7, 2013, Campari’s management will hold a conference call to present the Group’s full year 2012 results. To participate, please dial one of the following numbers:

  • from Italy: 02 8058 811
  • from abroad: +44 1212 818003

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, March 7 until Thursday, March 14, 2013. To listen to it, please call the following numbers:

  • from Italy: 02 72495
  • from abroad: +44 1212 818005

(access code: 778#).

Publishing date: 
07 Mar 2013
Last updated May 21 2013