Results Presentation
First Quarter ended 31 March 2024
May 7, 2024
Net Sales
€663.5 million
(+0.2% organic)
EBIT-adj.
€151.5 million (-2.3% organic)
Group Pre-tax
Profit-adj.
€147.3 million
(+5.8%)
Resilient performance in light of the expected tough comparison base, in a small quarter
- Organic sales +0.2% with solid underlying trends against a tough comparison base due to temporary phasing effect in Q1 2023 ahead of price increases (Q1 2023 +19.6%)
- Overall continued strength in aperitifs led by Campari and Aperol despite the challenging comparison base, largely thanks to EMEA and LATAM markets, while Espolòn in the US continued to show solid momentum
- Excluding the temporary positive phasing effect in Q1 2023, organic growth would be c. +6%, mainly impacting the US and Italy in aperitifs and Espolòn
- EBIT-adj.down -2.3%and margin at 22.8%, -60bpsvs Q1 2023 with dilutive effect of SG&A due to flattish net sales growth. Stable gross margin as pricing and positive sales mix fully offset expected COGS headwinds
- Excluding the temporary positive phasing effect in Q1 2023, EBIT-adj.organic growth would be c. +13% with flat gross margin
- Net debt(1) to EBITDA-adj.at 1.8x or c. 3.5x with pro-formanet debt(2) after closing of Courvoisier acquisition excluding positive P&L effect of its first-time consolidation
- Outlook remains unchanged
(1) | Net debt as of 31 March 2024 including the effect of the equity raise and convertible bond issue | 2 |
(2) | Reported last 12 months EBITDA excluding Courvoisier impact / Net debt as of 31 March 2024 plus Enterprise Value of Courvoisier of €1.2 billion closed on 30 April 2024 |
Growth driven primarily by Global Priority brands, largely aperitifs in EMEA and LATAM as well as Espolòn in the US
-
Total sales with reported change of -0.7% of which organic +0.2%, perimeter impact of +0.6% (or €3.9 million) driven by agency brands and
FX effect of -1.4% (or €(9.4) million) mainly driven by USD
AMERICAS
EMEA
APAC
Australia, 3% Others, 3%
Others, 15%
UK , 3%
Germany, 6%
France, 5%
Italy, 17%
Net Sales Organic Growth and Weight Breakdown | ||
Q1 2024 | Q1 2023 | |
+1.5% | +19.5% | Global Priorities |
+2.2% | +20.6% | Regional Priorities |
-20.2% | +14.5% | Local Priorities |
Rest Of Portfolio , 9% | ||
Local Priorities, 7% | ||
USA, 29% | AMERICAS 48% | |
EMEA 45% | ||
APAC 6% | ||
Regional Priorities; | ||
17% | ||
Jamaica, 5% | ||
SKYY ; 5% | ||
Others, 14% | Grand Marnier, 5% | |
Jamaican Rums, 5% |
Q1 2024 | Q1 2023 |
+2.3% +25.6%
-6.9%+14.1%
-1.6%+7.6%
Aperol, 23%
Global Priorities 67%
Regional Priorities 17%
Local Priorities 7%
Campari, 13% | Rest of portfolio 9% |
Espolon, 9%
Wild Turkey, 8%
Notes: | 3 |
Geographic and brand priorities composition and growth restated for Q1 2023 based on the reclassification announced at YE23. Details in annex |
Americas impacted by flattish US shipments, against a tough comparison base
AMERICAS
Weight Organic
in Sales Sales Growth
Flattish shipment performance against a tough comparison base (Q1 2023 +23.0%
USA 29% -0.4% benefitting from a temporary shipment phasing effect). Positive growth from Espolòn, Aperol and Grand Marnier, mitigating the challenging comparison base effect of Wild Turkey and Campari, as well as weakness in SKYY
48%
+1.5%
organic growth
Performance impacted by temporary supply shortages in rums as well as the
Jamaica 5% -8.3% comparison base (Q1 2023 +17.9%) while underlying consumption trends remaining on-track, particularly in the on-trade
Performance driven by strong double-digit growth in Brazil due to aperitifs and
Others 14% +10.3% local Brazilian brands thanks to a strong summer season. Canada grew thanks to Aperol and also Espolòn off a small base, while Argentina was impacted by persisting challenging macro environment
4
EMEA growth mainly driven by Germany and France more than offsetting a tough comparison base in other core markets
Weight Organic
in Sales Sales Growth
EMEA
45%
+2.2%
organic growth
Impact on shipment performance in a small quarter against a high comparative base as
expected (Q1 2023 +21.6% due to positive phasing preceding price increases and Easter
Italy 17% -4.9% calendar effect), especially due to Aperol (Q1 2023 +32.9%). Solid ongoing growth in Campari, up +11.8%
Continued outperformance largely driven by Aperol and innovation Sarti Rosa while | |||||
Germany | 6% | +12.4% | |||
non-alcoholic aperitif Crodino also grew alongside Ouzo12 | |||||
France | 5% | +4.5% | Solid growth led by Aperol and Riccadonna Prosecco as well as Picon, Trois | |
Rivières and Crodino | ||||
Softer performance in the context of a tough comparison base (Q1 2023 +21.5%) as | ||||
UK | 3% | -3.6% | ||
well as temporary negative impact of supply shortages in Jamaican rums | ||||
Positive growth in Austria, Spain, the Netherlands and Belgium, largely led by the
Others 15% +7.3% aperitifs, more than offsetting softer performance in GTR due to tough comparison base (Q1 2023 +126.5%)
5
APAC impacted by tough competitive environment in Australia, as well as route-to- market changes in China and India
ASIA PACIFIC
6%
-20.2%
organic growth
Weight Organic
in Sales Sales Growth
Performance impacted by difficult macro environment, increasingly competitive off-
Australia 3% -18.5% premise trends and pressure in brown-spiritRTDs. Resilient aperitif portfolio with flat performance despite tough comparison base
Negative shipments ahead of route-to-market changes in China and India. South | |||
Others | 3% | -22.6% | Korea impacted by phasing, tough trading environment as well as very tough |
comparison base (Q1 2023 +90.9%). Good momentum in Japan and New Zealand |
benefitting from strengthened distribution capabilities and continued investments
6
Global Priorities resilient with +2.3% organic growth driven mainly by Aperol, Campari
and Espolòn
GLOBAL PRIORITIES
67%
+2.3%
organic growth
Weight in | Organic Sales | ||||
Sales | Growth | ||||
Positive growth despite tough comparison base (Q1 2023 +43.6%) mainly led by | |||||
Aperol | 23% | +6.3% | Germany (+25.1%) and the US (+15.0%) followed by France, Austria, Canada and | ||
Spain with outperformance also from seeding markets such as Brazil and Mexico. | |||||
Core Italy impacted by a very tough comparison base (Q1 2023 +32.9%) | |||||
Campari | 13% | +6.8% | Strong performance led by growth in Brazil, GTR and Italy, offsetting a soft | ||
performance in the US, despite a tough overall comparison base (Q1 2023 +23.9%) | |||||
Continued double-digit growth led by the core US market (+11.5%) despite the | |||||
Espolòn | 9% | +13.2% | high comparison base (Q1 2023 +62.4%) with growth accelerating also in seeding | ||
markets with focus on internationalization, especially in Australia, Canada and GTR | |||||
Wild Turkey | 8% | -10.3% | Performance impacted by core US and Australia as well as South Korea due to the | ||
tough comparison base (Q1 2023 +26.9%) despite positive growth in premium | |||||
offering Russell's Reserve (+3.8%) | |||||
Jamaican | 5% | -8.7% | Appleton Estate and Wray&Nephew Overproof impacted by tough comparison | ||
bases in core markets as well as temporary supply shortages, while underlying trends | |||||
Rums | |||||
for premium rum remain intact | |||||
Grand | 5% | +7.9% | Performance led by the core US market (+15.2%) thanks to an easy comparison base | ||
Marnier | after destocking last year, also led by premium cocktail trends and mixology | ||||
SKYY | 5% | -11.4% | Negative performance due to a tough comparison base (Q1 2023 +20.8%), US -3.7% | ||
with international markets impacted by Argentina, offsetting growth in GTR and Australia | |||||
7
Regional Priorities -6.9%; Local Priorities -1.6% organic growth
REGIONAL PRIORITIES
17%
-6.9%
organic growth
(Q1 2023
+14.1%)
LOCAL PRIORITIES
Organic Sales | ||||
Growth | ||||
Sparkling wines, | +10.8% | Growth in Cinzano sparkling wine, Lallier Champagne and Mondoro offsetting | ||
Champagne & | ||||
weakness in Cinzano vermouth | ||||
Vermouth | ||||
Other | -24.4% | Weakness driven by Forty Creek in Canada and The GlenGrant in core GTR, South | ||
Whisk(e)y | Korea and Australia due to a tough comparison base | |||
Other | Performance impacted by negative phasing linked to price increases last year offsetting | |||
-14.0% | solid growth in Aperol Spritz RTE as well as the French specialties. Picon in particular | |||
Specialties | ||||
registered solid growth, up +12.6% | ||||
No-Alcohol | +1.8% | Positive growth in core no-alcohol franchise driven by international markets such | ||
(Crodino) | as Germany, France, the Netherlands and the UK vs a flattish Italy performance | |||
Organic Sales
Growth
7%
-1.6%
organic growth
(Q1 2023
+7.6%)
Campari Soda | +0.6% |
Wild Turkey RTD | -13.7% |
Ouzo12 | +16.9% |
SKYY RTD | -1.7% |
Flattish performance in core Italy and favourable trends in international markets continue off a very small base
Negative overall due to core Australia with category weakness and subsequent increased competition in promotional activity
Positive growth mainly thanks to core Germany
Strong growth in core Japan offset by temporary weakness in Mexico
Notes:
Espolòn from Regional to Global Priorities. Cabo Wabo, Picon, X-Rated reclassified from Local Priorities to Regional Priorities. Mayenda from Rest of Portfolio to Regional Priorities
Regional Priorities sub-categories:
Sparkling wines, Champagne & Vermouth includes Cinzano sparkling wines, Cinzano vermouth, Lallier Champagne, Riccadonna and Mondoro8 Other Whisk(e)y includes The GlentGrant, Forty Creek, Wilderness Trail
Other specialties includes Aperol Spritz RTE, Bisquit & Dubouché, Bulldog Gin, Magnum Tonic Wine, Maison La Mauny, Picon,Trois Rivieres, X-Rated, Averna, Braulio, Cynar, Del Professore, Frangelico, Cabo Wabo, Ancho Reyes, Montelobos, Mayenda No-Alcohol includes Crodino
Aperol: Australian Open Takeover & Full 360 Melbourne activations
9
Aperol: Continued deseasonalisation across multiple markets, including world cup events
10
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Davide Campari - Milano NV published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 09:05:02 UTC.