Davide Campari-Milano (CPR) Q2 2024 earnings summary

Executive summary

• Organic net sales grew 3.8% year-over-year to €1,523.4 million, with Q2 accelerating to 6.9%, led by Global Priority brands in the Americas and resilient EMEA despite poor weather; APAC declined due to competition and route-to-market changes.

• EBIT-adjusted rose 2.1% organically to €360 million (23.6% margin), diluted by negative sales mix from poor EMEA weather and fast Espolòn growth.

• Adjusted group net profit increased 2.2% to €239 million; reported net profit up 1.3% to €219.7 million.

• Outperformed industry, especially in aperitifs and tequila; Aperol Spritz became the most popular cocktail in the US and Germany.

• Courvoisier acquisition completed for €1.2 billion, consolidated from May 2024, strengthening the premium spirits portfolio and US/Asia presence.

Financial highlights

• Net sales: €1,523.4 million (+3.8% organic, +4.5% reported); perimeter impact +1.2%, FX -0.5%.

• Gross margin at 58.9%, diluted by negative mix and cost inflation; margin down 30–90bps year-over-year.

• Net debt/EBITDA-adjusted at 3.5x, reflecting Courvoisier acquisition and extraordinary capex.

• Recurring free cash flow at €130.8 million, a €222.4 million improvement year-over-year.

• Net financial debt at €2,553.2 million, up €699.7 million from year-end 2023.

Outlook and guidance

• Medium-term outlook remains positive, with continued brand momentum and margin expansion expected; industry outperformance to continue despite softer market and increased price competition.

• Gross margin expansion unlikely in 2024 due to mix, inventory headwinds, and delayed agave contract benefits; expect flat or slightly diluted margin if Q3 weather is favorable.

• 2025 expected to benefit from lower agave costs, improved sales mix, and glass contract renegotiations.

• High single-digit organic revenue growth still seen as achievable in a soft market; H2 performance depends on market and weather trends.