Campari announces 2014 First Half results

Positive results driven by the expected acceleration of sales in the second quarter

Growth driven by the aperitifs business

Continued positive performance in Italy, Latam and recovery in Russia, Jamaica and Australia


First HALF 2014 results Highlights

  • Sales: € 686.1 million (-1.8%, organic change +3.8%)
    • Contribution after A&P: € 253.8 million (-1.6%, organic change +4.1%, 37.0% of sales)
    • EBITDA pre one-offs: € 143.2 million (-1.6%, organic change +3.4%, 20.9% of sales)
    • EBIT pre one-offs: € 124.4 million (-0.8%, organic change +4.6%, 18.1% of sales)
  • Group net profit: € 57.3 million (-0.5%)
  • Net financial debt: € 1,099.1 million (€ 852.8 million as of 31 December 2013)


Milan, August 5, 2014 - The Board of Directors of Davide Campari-Milano S.p.A. (Reuters CPRI.MI-Bloomberg CPR IM) approved the consolidated results for the first half year ended 30 June 2014.


Bob Kunze-Concewitz, Chief Executive Officer: ‘On the back of a weak first quarter impacted by Easter timing, the expected robust recovery in organic sales in most key brand market combinations led to positive full first half 2014 results. In particular, growth was driven by our aperitifs business, with Campari and Aperol as well as the key local single serve brands performing strongly in the Italian market. Whilst the Cinzano and Appleton franchises recovered ground, SKYY and Wild Turkey shipments were soft due to temporary phasing issues in the US market which overshadowed the underlying positive depletion trends. With regards to the Group’s key markets, Italy performed strongly in the first half, as did Latin America, driven by Brazil and Argentina. Importantly, a strong recovery in the second quarter was also achieved in Russia, Jamaica and Australia which helped partly offset weak shipments in other key markets, which were also partially driven by phasing issues caused by production and route to market start-ups. Moreover, the positive effect of the sales mix improvement achieved in the first half was more than offset by these start-ups’ overlapping costs. Whilst these headwinds are likely to have a lag effect on the full year results, we are confident that the overall positive organic sales trend will consolidate in the second half year thanks to the normalisation of shipment trends across key markets. Looking forward, we expect to continue improving the momentum of our key brand market combinations thanks to our strengthened route to market as well as impactful marketing initiatives, including restylings, innovation and premiumisation.’.




In the first half of 2014 Group sales totalled € 686.1 million showing a reported decrease of -1.8%, driven by a sales organic change of +3.8%, a negative exchange rates effect of -6.5%, due to a devaluation in most of the Group functional currencies, and a perimeter effect of +0.9%, mainly driven by the net effect of acquisitions and new distribution agreements.

Gross margin decreased by -2.1% to € 365.5 million (+3.4% organic change), or 53.3% of sales.

Advertising and promotion spending (A&P) was down by -3.2% to € 111.7 million, or 16.3% of sales.

CAAP (Contribution after A&P)was down by -1.6% to € 253.8million (+4.1% organic change), or 37.0% of sales.

Structure costs, i.e. selling, general and administrative costs, decreased by -2.4%to € 129.4 million, or 18.9% of sales.

EBITDA pre one-offs was down by -1.6% to € 143.2 million (+3.4% organic change), or 20.9% of sales.

EBITDA reached € 140.0 million, a decrease of -0.5%, or 20.4% of sales.

EBIT pre one-offs declined by -0.8% to 124.4 million (+4.6% organic change), or 18.1% of sales.

EBIT reached € 121.2 million, an increase of +0.6%, or 17.7% of sales.

Pre-tax profit was 91.3 million, down by -0.9%.

Group net profit reached 57.3 million, down by -0.5%.

As of June 30, 2014, net financial debt stood at € 1,099.1 million (€ 852.8 million as of December 31, 2013), thanks to healthy cash flow generation, after the payment of the dividend of € 46.1 million and a total investment of € 237.3 million in the acquisitions of Forty Creek Distillery Ltd. and Fratelli Averna S.p.A. closed in June 2014. 



Looking at sales by region, the Americas (40.1% of total Group sales in the first half 2014) posted an overall change of -11.5%, with an organic change of +0.9%, an exchange rate impact of -11.5% and a perimeter effect of -0.9%. In the US (19.9% of total Group sales), sales registered an organic change of -3.6%, due to soft shipment of Wild Turkey and SKYY franchises while depletion trend across the overall portfolio remains positive. The LdM rum portfolio and Aperol registered a very strong organic performance. The perimeter effect was negative by -0.1%, due to the termination of distribution agreement of agency brands, and the exchange rate effect was negative at -4.0%. Sales in Jamaica (8.6% of total Group sales) declined by -8.0% with a strong recovery in the second quarter (+17.4%), driven also by the phasing effect from the first quarter of the year. The exchange rate effect was -12.8% and the change in perimeter was -4.2%, relating to the termination of distribution agreement of select consumer products in Jamaica. Sales in Brazil (4.8% of total Group sales) registered a positive organic performance of +14.8%, mainly driven by the continued strong performance of premium brands Campari (+26.0%) and SKYY (+25.4%). The local brands delivered a positive performance, with Dreher compensating for soft performance in the admix whiskies. The exchange rate effect was -17.6%. With regard to the other Americas, Argentina (2.4% of total Group sales) continued to register an excellent performance (+39.1%) driven mainly by the growth of volumes and the positive sales mix, with Campari and SKYY registering triple digit growth. Cinzano Vermouth, Cynar and Old Smuggler positively contributed to the overall performance with a double digit organic growth. The overall performance in Argentina was negatively impacted by an exchange rate effect of -51.9%.

The Italian market (28.3% of total Group sales in the first half 2014) recorded an increase of +8.2%, attributable to an organic growth of +8.7% and a perimeter change of -0.4%. The organic performance was mainly driven by the aperitifs, in particular Aperol, which showed a strong growth of +12.5%, and the single-serve aperitifs, including Crodino (+33.6%), which was boosted also by the new Crodino Twist launch with good progression both on and off premise, and Campari Soda (+10.1%). With regard to the rest of the Italian portfolio, the Cinzano franchise, the still wines as well as the soda range showed positive organic growth.

Sales in the rest of Europe (21.6% of total Group sales in the first half 2014) grew by +2.9% overall, driven by an organic growth of +2.2%, a perimeter effect of +2.9%,thanks to the William Grant&Sons portfolio distribution rights in Germany, and an exchange rate effect of -2.2%. Germany (9.9% of total Group sales) recorded a negative organic change of -6.0%, as a result of a weak performance of Cinzano sparkling wines
. Russia (2.4%of total Group sales)registered a positive organic change of +0.3%, as a result of a strong recovery in the second quarter (+36.3%), driven by a double digit growth of Cinzano sparkling wines (+27.8%), as well as a good performance of Campari and Aperol, more than offsetting the declining trend of Cinzano vermouth, in line with the category’s trend. The other European markets continued to register a strong performancewith an overall organic growth of +12.6%, driven by the growth in the core Central European markets, particularly Belgium, Austria, France and Switzerland, driven by Aperol, and Eastern European countries.

Sales in the rest of the world (including Global Travel Retail), which accounted for 10.1% of total Group sales in the first half 2014, increased by +6.6% overall, with an organic change of +7.7%, an exchange rate effect of -9.8% and a perimeter growth of +8.6%, the latter attributable to the third party bottling activities run by the newly acquired Copack in Australia. Australia (4.5% of Group sales) grew by +2.4%, driven by a strong recovery in the second quarter (+9.7%), also due to the shift of Easter timing. Very positive performance were registered in South Africa (+15.0%), Nigeria (+111.5%) and the Global Travel Retail, driven by Campari, SKYY and Aperol, offsetting the weak results in Japan and New Zealand.

Looking at the sales by key brands, with regard to the Top Six International Franchises, aperitifs confirmed the overall positive performance registered in the first quarter. Campari grew by +12.5%, thanks to very positive results in almost all key markets, in particular in Americas (+36.7%), mainly thanks to Argentina and Brazil, and the continuing fast expansion in newly developed markets, in particular Nigeria (+158.4%). Aperol continued its strong growth (+14.6%), particularly in Italy, Central Europe and Global Travel Retail, also thanks to the success recorded in the Americas which registered a triple digit growth driven by the very positive consumer trend for Italian specialties in the US. SKYY sales achieved an organic change of -2.6%, driven by soft shipment in US market (-7.1%) due to temporary phasing issues in the US market which overshadowed the underlying positive depletion trend. A very healthy growth continued in the other key brand markets, with double digit growth in Brazil (+25.4%), China (+84.6%) and South Africa (+21.9%), and triple digit growth in Argentina (+244.4%). The Wild Turkey franchise registered an organic change of -4.9%. In Australia, the franchise registered an improving trend, driven by a very positive performance achieved in the second quarter, partially offsetting the weak results in the US and Japan caused by a shipment phasing, which is expected to stabilize across the year. The LdM rum portfolio, including Appleton, W&N White Overproof and Coruba, showed a negative change of -4.4%, with a positive performance registered in second quarter (+5.5%), which partially offset the negative results in the first quarter. The US market achieved a positive performance, while in Canada and Jamaica results were affected by phasing issues.

The Cinzano franchise registered an organic change of -9.0%. Cinzano sparkling wine decreased by -10.1%, driven by a negative performance in core German market, partially compensated by improved results in the volatile Russian market. The performance of Cinzano vermouth was also down by -7.6%, mainly due to the category weakness in core Russian market. In US and Argentina the franchise registered very encouraging results.

Frangelico and Carolans were up by +0.2% organically, driven by the positive performance of Carolans in core Canadian market. The tequila portfolio registered an organic growth of +5.8%, thanks to good results achieved in the US market, and positive trends in the other key markets. GlenGrant and Old Smuggler registered an organic change of +2.3%, driven by a positive performance in France, South Africa and Global Travel Retail, offsetting the decrease in the Italian market where the whisky category is experiencing a declining trend.

Other sparkling wines (Riccadonna andMondoro) increased organically by +11.9%, mainly driven by a recovery in the core Russian market, as well as positive results in Australia and Belgium. Still wines (mainly Sella&Mosca, Enrico Serafino and Teruzzi&Puthod) increased by +6.7%, thanks to a positive growth registered in the core Italian and German markets.

With regards to the key local brands, the Italian single-serve aperitifs registered a very positive performance: Crodino achieved a growth of +31.9%, thanks to the new marketing initiatives, and Campari Soda increased by +10.5%, driven by very satisfactory results achieved in core Italian market. Lastly, the Brazilian brands posted a positive result, up +9.4%.  

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, August 5, 2014, Campari’s management will hold a conference call to present the Group’s first half 2014 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 today, August 5 until Tuesday, August 12, 2014.

To listen to it, please call the following numbers:

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

(Access code: 712#).

Publishing date: 
05 Aug 2014
Last updated Aug 05 2014