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 transformational reorganization by creating four 'houses of brands' to enhance growth and efficiency, focusing on aperitifs, cognac, champagne, tequila, whiskeys, and rum.
- 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 challenges in Italy and Germany due to cyclical factors.
- The company is targeting a 200 basis point reduction in SG&A as a percentage of net sales over the next three years, aiming to improve cost efficiency and profitability.
- Davide Campari-Milano NV (DVDCF) faced a challenging macroeconomic environment, with poor weather conditions and reduced consumer confidence impacting sales, particularly in the third quarter.
- The company's EBIT margin declined by 140 basis points to 21.9% due to lower absorption of fixed costs and a challenging sales mix.
- The U.S. market experienced destocking and muted consumption, affecting sales performance, particularly for SKYY vodka and Wild Turkey.
- The Jamaican rum portfolio was impacted by a hurricane, leading to supply shortages and affecting both local and international markets.
- The company anticipates continued macroeconomic headwinds and expects only low single-digit organic sales growth for the full year 2024.
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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