Gruppo Campari First Quarter 2009 Results

In a difficult economic environment Campari Q1 09 results are satisfactory
Continued excellent cash generation in the quarter


  • Sales: € 190.1 million (-0.4%, organic growth -4.2%)
  • Contribution after A&P: € 79.9 million (+4.2%, organic growth +0.5%, 42.0% of sales)
  • EBITDA before one-offs: € 48.2 million (+1.9%, 25.3% of sales)
  • EBIT before one-offs: € 43.1 million (+2.3%, 22.7% of sales)
  • Group’s pre-tax profit: € 38.4 million (-4.1%)

Milan, May 13, 2009 - The Board of Directors of Davide Campari-Milano S.p.A. approved the results for the quarter ending 31 March 2009.

In a tough economic environment, Campari results in the first quarter 2009 were overall satisfactory. Although in a low seasonality quarter, performance was negatively affected, as expected, by the continued destocking in selected markets. At the same time, it should be noted that positive underlying consumption momentum behind key brands continues to accelerate.

The Group continues to demonstrate excellent cash generation: net financial debt was reduced by € 23.9 million to € 302.3 million in the first quarter 2009.

Bob Kunze-Concewitz, Chief Executive Officer: “Going forward, we expect to benefit from the consumption momentum behind key brands, the reduction of destocking pressure as well as an improving input costs and currency outlook. However, we will maintain a cautious stance, with focus on cost containment, working capital and cash generation throughout the year”.

Consolidated results for the first quarter of 2009

(In millions of €) 1 January -
31 March 2009
1 January -
31 March 2008 
at actual exch.
at constant exch.
Net sales
190.1 190.9 -0.4% -2.5%
Contribution after A&P (1) 79.9 76.7 4.2% 1.3%
EBITDA before one-offs 48.2 47.3 1.9% -1.7%
EBITDA 47.7 50.2 -5.0% -8.4%
EBIT before one-offs 43.1 42.1 2.3% -1.8%
EBIT 42.6 45 -5.4% -9.2%
Group’s pretax profit
38.4 40.1 -4.1% -7.9%

(1) EBIT before SG&A (Selling, general and administrative costs)

In the first quarter 2009, Group sales totalled € 190.1 million (-0.4%, -4.2% organic growth, +2.1% exchange rate effect and +1.7% perimeter effect, the latter due to the announced acquisitions of Destiladora San Nicolas, Sabia and new distribution agreements of Licor 43 in Germany and Cointreau in Brazil).

Contribution after A&P (gross margin after distribution costs and A&P) was € 79.9 million (+4.2%; +0.5% organic growth), or 42.0% of sales.

EBITDA before one-offs was € 48.2 million (+1.9%; -1.7% at constant exchange), or 25.3% of sales.
EBIT before one-offs was € 43.1 million (+2.3%; -1.8% at constant exchange rates), or 22.7% of sales.
EBITDA was € 47.7 million (-5.0%; -8.4% at constant exchange rates).
EBIT was € 42.6 million (-5.4%; -9.2% at constant exchange rates).
The Group pre-tax profit was € 38.4 million, a decrease of 4.1% (-7.9% at constant exchange rates).

Decline in EBITDA, EBIT and Group pre-tax profit was entirely due to non repetitive positive impact of first quarter 2008 one-offs (€ 2.9 million).

As of 31 March 2009 net financial debt stood at € 302.3 million (€ 326.2 million as of 31 December 2008) after payment of Odessa acquisition for € 14.2 million and provisions for potential put options and earn outs on minority stakes for € 27.6 million. Before the above provisions net financial debt was € 274.7 million (€ 299.7 million as of 31 December 2008).


Sales variation in spirits (70.5% of total sales) was +3.8%, the combined result of organic decrease of 1.7%, a positive exchange rate effect of 3.2% and a positive perimeter effect of 2.3%.

The Campari brand sales declined by 3.5% at constant exchange rates (-3.3% at actual exchange rates), driven by destocking in Brazil. SKYY sales grew by 8.2% at constant exchange rates (+21.6% at actual exchange rates). Aperol confirmed its excellent growth trend (+22.6% at constant exchange rates). Campari Soda finished the first quarter with a positive performance of 5.3%.


Cynar (+18.2% at constant exchange rates) and X-Rated (+10.0% at constant exchange rates) registered a good growth. On the contrary the Brazilian brands sales were heavily impacted by wholesalers de-stocking (decline of 66.1% at constant exchange rates), notwithstanding the continuing good consumption trend; Cabo Wabo poor results (-70% at constant exchange rates) were impacted by both de-stocking and the slowdown in the on-trade channel in the US. Glen Grant (-6.9% at constant exchange) is gaining market share in a declining Scotch whisky category in Italy.

Wines, which accounted for 12.6% of total sales, registered a decrease of 9.4%, due to the combination of negative organic performance of 10.5%, an exchange rate effect of -0.1% and a positive perimeter effect of +1.2%. The segment’s negative performance was driven by Cinzano vermouth (-34.4% at constant exchange rates) due to de-stocking activities in Russia. Cinzano sparkling wines were soft (-1.4% at constant exchange rates) and, among the still wines, Sella & Mosca registered a decrease of 12.6% at constant exchange rates. Riccadonna was strong (+114.6% at constant exchange rates) thanks to a very good performance in key Australian market.

Soft drinks (15.6% of total sales) recorded a negative variation of 6.6%, entirely attributable to weak performance of the low-margin Lemonsoda range. Crodino registered a soft performance (- 1.3% at constant exchange rates), driven by tough comparison base quarter on quarter.

Looking at results by region in 2009 first quarter, sales on the Italian market (53.0% of total Group sales) recorded an increase of 1.5%, thanks to good organic growth. Sales in Europe (19.4% of consolidated sales) decreased by 5.6%, driven by a negative organic performance of 6.2%; the exchange rate effect was negative at 0.4%, while the perimeter effect was positive at 1.0%. The Americas (22.8% of total sales) posted a negative organic change of 18.4%, partially offset by a positive exchange rate effect (+8.6%) and a positive perimeter effect (+7.5%) due to the announced acquisitions of Destiladora San Nicolas and Sabia. In the Americas, the US market registered an organic decrease of 12.7%, offset by a positive exchange rate effect of 12.9%. In Brazil, sales registered an organic decrease of 49.2%, a positive perimeter effect of 0.7% and a negative exchange rate effect of 7.0%. Sales in the rest of the world (including duty free sales), which accounted for 4.8% of total sales, grew by 10.2% overall, driven by an organic growth of 7.3%.

The Manager in charge of preparing Davide Campari-Milano S.p.A.’s financial reports, Paolo Marchesini, certifies - pursuant to article 154 bis, paragraph 2 of the Consolidated Law on Financial intermediation (Legislative Decree 58/1998) - that the accounting disclosures in this statement correspond to the accounting documents, ledgers and entries.


Please note that at 5:00 pm (CET) today, Wednesday 13 May 2009, Campari’s management will hold a conference call to present the Group’s 2009 first quarter results to analysts, investors and media. To participate, please dial one of the following numbers:

  • from Italy: 800 900 015 (toll free number)
  • from abroad: +39 02 3700 8220

Access code: 973782#

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 14 May until Thursday 21 May 2009.

To hear it, please call +44 20 713 69233 (access code: 70496087#).

Publishing date: 
13 May 2009
Last updated May 27 2013