Campari Group announces 2018 nine months results
Very positive net sales organic growth, accelerating in Q3,
driven by the continued outperformance in key high-margin global and regional priorities
Solid organic performance of all operating profit indicators, driven by continuous sales mix improvement, offset the adverse effects from forex and non-core disposals
9M 2018 Highlights
Reported sales of €1,200.6 million. Solid organic growth of +6.6%. On a reported basis, change of -2.5% after the exchange rate and perimeter effects.
Favourable sales mix driven by Aperol, Campari, Wild Turkey and Espolòn, and, by geography, driven by US, Western Europe and Australia.
EBIT adjustedof €259.2 million. Organic growth of +8.7% ahead of organic sales growth, showed an organic margin accretion of +40 basis points, driven by solid gross margin expansion (+80 basis points). On a reported basis, change of +0.7% after the exchange rate and perimeter effects.
Group pre-tax profit of €249.4 million, +4.7%. Group pre-tax profit adjusted of €235.5 million, +4.8%.
Net financial debt of €913.8 million as of September 30th, 2018 (€981.5 million as of December 31st, 2017), thanks to the positive free cash flow generation, the proceeds from the sale of the Lemonsoda business, net of the acquisition of Bisquit, the dividend payment and the net purchase of own shares.
Hyperinflation in Argentina. As required by IFRS, IAS 29-‘Financial reporting in Hyperinflationary economies’ was adopted in Argentina as of July 1st, 2018. The effects deriving from this adoption in Argentina, which accounted for 0.9% of the Group’s consolidated net sales in first nine months 2018, are considered immaterial.
Milan, November 6th, 2018-The Board of Directors of Davide Campari-Milano S.p.A. (Reuters CPRI.MI-Bloomberg CPR IM) approved the additional financial information at September 30th, 2018.
Bob Kunze-Concewitz, Chief Executive Officer: ‘In the first nine months 2018 we achieved a very positive net sales organic growth, accelerating in the third quarter, driven by the continued outperformance of the key high margin global and regional priorities in the core developed markets. The favourable sales mix continued to drive the growth ofprofitability andmargin expansion, and helped compensate the expected adverse forex effect as well as the impact from the divestments of non-core businesses.Looking at the remainder of the year, our outlook remains broadly unchanged and balanced in terms of risks and opportunities. We remain confident in achieving a positive performance across key underlying business indicators in the year.’.
 Before positive adjustments of €12.3 million in 9M 2018, mainly attributable to the gain on the Lemonsoda business disposal, net of provisions for restructuring costs. Positive adjustments of €38.2 in 9M 2017.
Group pre-tax profit before overall net positive adjustments of €13.9 million in 9M 2018, of which positive operating adjustments of €12.3 million and positive financial adjustments of €1.6 million. In 9M 2017 overall net positive operating and financial adjustments of €13.6 million.
Please refer to paragraph Adoption of IAS 29-‘Financial reporting in Hyperinflationary economies’ in Argentina, on page 5, for further information.