Compagnia dei Caraibi (TIME) H2 2023 earnings summary

Executive summary

• 2023 closed with consolidated revenues of €52.8 million, up 6.2% year-over-year, driven by growth in Italy and new acquisitions, despite a challenging consumption environment.

• The year was marked by a significant net loss of €15.2 million, mainly due to the insolvency and full write-down of the Elephant Gin GmbH investment.

• Adjusted net loss was €2.5 million, reflecting extraordinary items including a €7.2 million impairment on Elephant Gin and a €0.9 million loss from a cyber fraud.

• The company expanded its B2C and creative agency activities through acquisitions and continued to invest in ESG initiatives, achieving B Corp certification.

• The group remains focused on premium and over-premium beverage distribution, brand building, and international expansion.

Financial highlights

• Consolidated revenues reached €52.8 million (+6.2% year-over-year); like-for-like growth was also 6.2%.

• EBITDA was negative at €-2.2 million (EBITDA margin -4.2%), down from €4.7 million in 2022; Adjusted EBITDA was €-0.3 million (-0.7% margin).

• EBIT was €-7.3 million (EBIT margin -13.7%), with Adjusted EBIT at €-2.0 million.

• Net loss was €15.2 million, compared to a net profit of €2.0 million in 2022; Adjusted net loss was €2.5 million.

• Net financial position was negative at €10.3 million, compared to €-1.9 million at end-2022.

Outlook and guidance

• The company expects continued organic sales growth and gradual margin improvement in 2024, supported by cost efficiencies and normalization of inflation.

• The first quarter of 2024 showed resilience, with consolidated revenues up about 4% year-over-year.

• Strategic priorities include strengthening the proprietary brand portfolio, developing multichannel B2C distribution, and leveraging creative agencies for value creation.

• Management confirmed business continuity for the next 12 months, supported by a new business plan and a €3 million convertible bond commitment.