Campari announces solid 2008 results

Campari announces solid 2008 results
Organic sales growth +2.7%, net profit up +1.1%
Excellent cash flow generation from operating activities: € 171.5 million


  • Sales: € 942.3 million (-1.6%, organic growth +2.7%)
  • EBITDA before one-offs: € 218.3 million (-2.1%, organic growth +2.2%, 23.2% of sales)
  • Group’s net profit: € 126.5 million (+1.1%)
  • Cash flow from operating activities up, at € 171.5 million
  • 2009 proposed dividend confirmed at 2008 level (€ 0.11 per share)

Milan, 18 March 2009 - The Board of Directors of Davide Campari-Milano S.p.A. approved the full year results for the year ending 31 December 2008.

Campari achieved a solid performance during the full year 2008 despite the worsening economic environment. Highlights include achieving 2.7% organic sales growth and improved net profit (+1.1% at actual exchange rates, +3.1% at constant exchange rates).

The Group demonstrated excellent cash flow generation from operating activities - €171.5 million - also thanks to disciplined working capital management.

Bob Kunze-Concewitz, Chief Executive Officer: “In 2008 we achieved solid results in spite of a significantly worsening economic environment. We obtained positive organic growth in sales as well as in all operating profit indicators thanks to cost containment. Moreover we had excellent cash flow generation driven by disciplined working capital management. While we will maintain a cautious stance during the current year, we are positive about the company’s prospects: the underlying business is healthy and the Group’s key brands’ consumption continues to grow and outperform market trends”.


 Consolidated results  1 January -
31 December
 € million  
 1 January -
 31 December 
€ million 
 at constant   
at actual
 Net sales   942.3    957.5    +0.1%   -1.6% 
Contribution after A&P (1)   341.2    341.5   +1.7%   -0.1% 
 EBITDA before one-offs    218.3   223.0   -0.1%   -2.1% 
 EBITDA   214.7   220.1    -0.4%   -2.5% 
 EBIT before one-offs    199.0    203.4    -0.1%   -2.1% 
 EBIT   195.4    200.6    -0.4%   -2.6% 
Group’s net profit    126.5   125.2   +3.1%   +1.1% 

(1) EBIT before SG&A (G&A, other operating income/expenses and selling expenses), based on new P&L format introduced in 2008.

In 2008, Group sales totalled € 942.3 million (-1.6%, +2.7% organic growth, -1.6% exchange rate effect and -2.7% perimeter effect, the latter due to the announced changes in the US portfolio).

Contribution after A&P (gross margin after distribution costs and A&P) was € 341.2 million (-0.1%; +2.8% organic growth), or 36.2% of sales.

EBITDA before one-offs was € 218.3 million (-2.1%; +2.2% organic growth), or 23.2% of sales.

EBITDA was € 214.7 million (-2.5%; -0.4% at constant exchange rates).

EBIT before one-offs was € 199.0 million(-2.1%; -0.1% at constant exchange rates, +2.4% organic growth), or 21.1% of sales.

EBIT was € 195.4 million (-2.6%; -0.4% at constant exchange rates).

Profit before tax and minority interests was € 172.4 million (-5.9%; -3.9% at constant exchange rates).

The Group net profit rose to € 126.5 million, an increase of 3.1% at constant exchange rates and +1.1% at actual exchange rates.

As of 31 December 2008 net financial debt stood at € 326.2 million (€ 288.1 million as of 31 December 2007) after provisions for potential put options and earn outs on minority stakes for € 26.6 million. Before provisions net financial debt was € 299.7 million (€ 288.1 million as of 31 December 2007).


Sales variation in spirits (70.5% of total sales) was -3.4%, the combined result of organic growth of 2.4%, an exchange rate effect of -2.0% and a perimeter effect of -3.8%.

The Campari brand posted growth of 2.0% at constant exchange rates (+1.3% at actual exchange rates). SKYY sales grew by 11.1% at constant exchange rates (+4.1% at actual exchange rates).

Aperol confirmed its tremendous growth trend (+13.3% at constant exchange rates). The Brazilian brands, notwithstanding a positive consumption trend, were flat (-0.5% at constant exchange rates, -0.8% at actual exchange rates) driven by wholesalers de-stocking at year end. CampariSoda decreased by 6.3%. Glen Grant, despite a decline (-4.6% at constant exchange), gained market share in the whisky category in Italy.

Wines, which accounted for 16.7% of total sales, registered a growth of 4.1%, due to the combination of an organic growth of +4.4%, an exchange rate effect of -0.6% and a perimeter effect of +0.3%. The segment’s positive performance was driven by Cinzano vermouth (+9.5% at constant exchange rates), Cinzano sparkling wines (+1.5% at constant exchange rates) and, among the still wines, Sella & Mosca and Teruzzi & Puthod.

Soft drinks (10.9% of total sales) recorded a positive change of 0.6%, entirely attributable to organic growth, driven by Crodino (+4.1%). While the Lemonsoda range was in line with the previous year, the low margin Crodo sodas and mineral water declined.

Looking at results by region in 2008, Europe, accounting for 22.6% of consolidated sales, grew (+7.8%, +8.3% organic growth), thanks to positive performances from Germany, Russia and other major European markets; the Italian market (41.1% of total Group sales) slightly declined (-1.5%). In the Americas (31.5% of total sales), the US market registered organic growth of 5.9% (eroded by an exchange rate effect of -5.4% and a perimeter effect of -11.9%); in Brazil, sales declined (-3.6% organic performance): the positive consumption trend was offset by a slow-down in orders also due to the impact of some changes in fiscal duties. The rest of the world (which includes duty free sales and accounts for 4.8% of total sales) grew (+4.0%; +5.1% organic growth).


Campari keeps a cautious stance focusing on cost containment, working capital management and cash generation throughout the year.

The Group expects positive consumption momentum due to the strength of its portfolio brands’ equities. Unless the economy deteriorates further, destocking is expected to ease during the year.

Furthermore, the Group expects lower input costs from raw materials and more favourable currency exchange rates.


Dividend.The Board of Directors has voted to propose a full year dividend of € 0.11 per share to the Shareholders' meeting scheduled for 30 April 2009. This is unchanged from the previous year.
The dividend will be paid on 21 May 2009 (coupon no. 5 to be detached on 18 May 2008) except on own shares.

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 2010. The unit price for the purchase and/or sale of own shares will not differ by more than 25% (whether higher or lower) from the weighted average closing 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 authorising a stock option plan pursuant to Art. 114-bis of the Consolidated Law on Financial Intermediation. The plan has been prepared in accordance with the stock option master plan approved by the Board of Directors of 18 March 2009 in replacement of the previous master plan of 2 May 2001. The company will disclose an information document regarding the issuance of stock options pursuant to the applicable law (Art. 84-bis, Consob Regulation no. 11971/99).

* * *


Please note that at 17.00 (CET) today, Wednesday 18 March 2009, Campari’s management will hold a conference call to present the Group’s 2008 results to analysts, investors and media. To participate, please dial one of the following numbers:

  • from Italy: 800 785 165 (toll free number)
  • from abroad: +39 02 6968 2742

Access code: 518758#

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 19 March until Thursday 26 March 2009.

To hear it, please call +44 20 713 69233 (access code: 33018523#).

Publishing date: 
18 Mar 2009
Last updated May 27 2013