Strong results in the first quarter driven by sustained top line organic growth despite the late Easter effect. Outperformance driven by the key Global and Regional Priorities in core developed markets, enhanced by a recovery in emerging markets in a small quarter.
Q1 2019 Results Highlights.
Reported sales of €370.1 million. Organic growth of +9.6%. On a reported basis, change of +10.1% after the exchange rate and perimeter effects.
Strong sales organic growth, despite the late Easter effect, driven by double digit growth in key Global and Regional Priorities in core developed markets, enhanced by a recovery in emerging markets helped by a favourable comparison base in a small quarter.
EBIT adjusted1of €72.4 million. Organic growth of +15.4%, well ahead of organic sales growth (+100 bps margin accretion), on the back of the very strong top line growth. On a reported basis, change of +18.5%.
Group pre-tax profit adjusted of €63.9 million (+16.5% on a reported basis).
Net financial debt of €893.9 million as of March 31st, 2019 (€846.3 million as of December 31st, 2018), due to an increase of €83.3 million attributable to the first-time application of IFRS 16 (effective as of 1 January 2019) which more than offset the positive cash flow generation.
Milan, May 7th, 2019-The Board of Directors of Davide Campari-Milano S.p.A. (Reuters CPRI.MI-Bloomberg CPR IM) approved the additional financial information at March 31st, 2019.
Bob Kunze-Concewitz, Chief Executive Officer: ‘We achieved a very strong start of the year driven by the combination of both a strong momentum of the key Global and Regional Priorities in core developed markets, despite the late Easter, and the recovery in emerging markets, largely against an easy comparison base in a small quarter. Profitability indicators grew strongly and well ahead of organic sales development thanks to a positive sales mix, though diluted by the bounce back of low-margin emerging markets, and the slower growth in marketing investments and structure costs. Concomitantly, on a reported basis, the results benefited from a positive forex effect, partially offset by the tail-end effect of the termination of distribution contracts from the previous year. Looking into the full year, the outlook remains fairly balanced in terms of risks and opportunities, and unchanged against the previous announcement. We remain confident in achieving a positive performance across key underlying business indicators, driven by the continued outperformance of the high-margin Global and Regional Priorities in the core developed markets.’.