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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Disclaimer

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.