Half Year 2024 Davide Campari Milano NV Earnings Call Transcript
Key Points
- Davide Campari-Milano NV (DVDCF) reported a positive set of results with organic net sales up 3.8%, driven by strong performance in Q2 with a 6.9% increase.
- The company experienced continued strength in aperitifs, particularly Aperol and Campari, with notable growth in the Americas and Germany.
- Espolòn showed impressive double-digit growth, contributing significantly to the company's overall performance.
- The company successfully managed to offset cost increases with pricing strategies, maintaining a balance between pricing and COGS.
- Davide Campari-Milano NV (DVDCF) demonstrated resilience in Europe despite poor weather conditions, maintaining growth in key markets like Germany and Spain.
- The company faced temporary headwinds due to negative sales mix effects, particularly from poor weather impacting high-margin aperitifs in Europe.
- Gross margin was negatively impacted by the fast growth of Espolòn, which is still dilutive at the gross margin level.
- There were challenges in depleting last year's high-cost inventory, affecting the company's cost structure.
- The net debt to EBITDA ratio increased to 3.5 times, reflecting higher financial leverage.
- The Asia Pacific region showed a negative performance in the first half, with a 10% decline, although improvements were noted in Q2.
Welcome, and thank you for joining the Campari Group half-year 2024 results conference call. (Operator Instructions)
At this time, I would like to turn the conference over to Mr. Matteo Fantacchiotti, CEO of the Campari Group. Please go ahead, sir.
Thank you very much. So good morning, good afternoon and evening, everyone, and thank you very much for your interest in joining us for today's call. I'm here in the room with our CFO and COO, Paolo Marchesini; and Chiara and our Investor Relations team.
Look, to me, we announced today a positive set of results, especially considering the current challenging industry context and broader macro context, which is still, as you know, quite volatile. We are braving the elements already in Q2 in Europe and tailwinds of inflation and yet we still outperform the market. We have solid brand momentum and growing brands in healthy categories.
So in a sea of flattish red negative signs, with positive growth with
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