Q3 2024 Davide Campari Milano NV Earnings Call Transcript
Key Points
- Davide Campari-Milano NV (DVDCF) reported a 2.1% organic net sales growth for the first nine months of 2024, driven by global priority brands, particularly in the Americas and EMEA.
- The company is implementing a significant cost containment program aimed at achieving a 200 basis point reduction in SG&A as a percentage of net sales by 2027.
- Espolon tequila showed strong performance, with a 18% growth in the first nine months, outperforming the tequila category in key markets.
- Aperol continues to perform well, with strong growth in the U.S., Canada, and other markets, despite challenging conditions in Italy and Germany.
- The company is reorganizing its operating model to create four houses of brands, which is expected to enhance growth and efficiency by focusing on brand accountability and resource allocation.
- Davide Campari-Milano NV (DVDCF) faced a challenging macroeconomic environment, with poor weather conditions and reduced consumer confidence impacting sales, particularly in Italy and the U.S.
- The company's EBIT margin declined by 4.2% organically over the first nine months, with a significant margin dilution of 140 basis points.
- The third quarter saw a 1.4% organic net sales growth, reflecting a soft market context and supply shortages due to a hurricane in Jamaica.
- The company experienced destocking issues in Italy and unexpected retailer destocking in the U.S., impacting shipment performance.
- The Courvoisier acquisition is generating a lower-than-expected EBIT contribution due to market cleanup and investment needs.
Good evening. This is the Chorus Call conference operator. Welcome, and thank you for joining the Campari Group 9 Months 2024 Results Conference Call. (Operator Instructions)
At this time, I would like to turn the conference over to Paolo Marchesini, Chief Financial and Operating Officer and Interim Co-CEO of Campari. On this call, there will be also Chiara Garavini presenting.
I now hand you over to Mr. Marchesini. Please go ahead, sir.
Thank you for that. Good afternoon, and good evening, everybody, and thank you for joining us today. Given the current circumstances, today with me, we have Chiara, who will help me walk you through the presentation deck, which is, as you can see, quite thorough and long. But we'll do our best to keep it as short as possible to leave some room for the important Q&A session.
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