Davide Campari-Milano (CPR) Q3 2025 earnings summary

Executive summary

• Achieved resilient organic growth of +1.5% in net sales for the first nine months of 2025, reaching €2,281 million, despite a challenging macroeconomic environment and adverse currency effects.

• Outperformed the spirits sector in key markets, with strong sell-out and shipment alignment, particularly in the US and EMEA, and gained share across most geographies during peak season.

• Profitability improved, supported by gross margin accretion, disciplined cost management, and efficiency gains, offsetting increased brand investments.

• Continued portfolio streamlining, including disposals of Tannico, Cinzano, and the Australian plant, supporting financial deleveraging.

• Leadership transition: Paolo Marchesini to Vice Chairman, Francesco Mele as new CFO, and Simon Hunt as CEO.

Financial highlights

• Net sales grew +0.2% year-over-year to €2,281 million, with +1.5% organic growth, +1.1% perimeter impact, and -2.4% FX effect; Q3 organic growth was 4.4%.

• EBIT-adjusted reached €517.4 million (+3.6%), margin at 22.7% (up 80bps reported, flat organically); EBITDA-adjusted was €628.7 million (+6.4%), margin at 27.6%.

• Group pre-tax profit-adjusted was €440.4 million (-2.6% year-over-year); reported pre-tax profit was €398.8 million (-5.7%), impacted by higher financial expenses and one-off severance costs.

• Net financial debt at €2,240 million, improved by €136 million year-over-year, with leverage ratio down to 2.9x from 3.6x.

• Cash and cash equivalents at €509 million, reflecting positive cash generation but down €157 million from end-2023 due to dividends, CapEx, and loan repayments.

Outlook and guidance

• Full-year guidance maintained for moderate organic topline growth and flattish EBIT-adjusted margin, with tariff impacts now absorbed and further cost efficiencies anticipated.

• Guidance assumes no further deterioration in consumer confidence in Europe or the US, especially in the on-trade.

• Medium- to long-term outlook remains positive, targeting a return to mid- to high-single-digit organic net sales growth and EBIT margin accretion supported by ongoing cost initiatives.

• On track to deliver 50bps improvement in SG&A margin in the first year of cost containment, aiming for 200bps benefit over three years.