Davide Campari-Milano N.V. · MIL:CPR
Davide Campari-Milano — Q1 2021 Earnings Presentation
41 slides from Davide Campari-Milano's earnings presentation, May 4, 2021
Slide 1: 2021 First Quarter Results
May 4, 2021 2021 First Quarter Results Investor Presentation
Slide 2: Table of contents
Table of contents Results Summary Sales Results Consolidated P&L Net Financial Debt Marketing Initiatives Conclusion & Outlook Annex 2
Slide 3: Results for first quarter ended 31 March 2021
Results for first quarter ended 31 March 2021 STRONG DOUBLE-DIGIT GROWTH IN A SMALL QUARTER AMPLIFIED BY EASY COMPARISON BASE AND EARLY EASTER EFFECT Q1 2021 Change vs. Q1 2020 Organic change vs. Q1 2019 € million Reported Organic Perimeter (1) FX Net sales 397.9 +10.5% +17.9% -0.8% -6.6% +12.1% Gro
Slide 4: Growth driven by off-premise skewed markets and EMs
Growth driven by off-premise skewed markets and EMs GOOD MOMENTUM IN SPITE OF THIRD WAVE OF LOCKDOWNS DRIVEN BY HOME CONSUMPTION > Net Sales • Overall organic growth of +17.9% in a small quarter, as underlying momentum in core off-premise markets was amplified by an easy comparison base vs. Q1 2020
Slide 5: Strong brand momentum continues in the off-premise
Strong brand momentum continues in the off-premise CONSUMER COMFORT WITH HOME MIXOLOGY DRIVING SOLID BRAND MOMENTUM Total Campari US Total Campari UK Total Spirits Market Aperol Total Spirits Market Espolòn Aperol Wild Turkey Wray&Nephew SKYY Vodka Campari Grand Marnier Campari 0% 10% 20% 30% 40% 50
Slide 6: Table of contents
Table of contents Results Summary Sales Results Consolidated P&L Net Financial Debt Marketing Initiatives Conclusion & Outlook Annex 6
Slide 7: Recovery in a low seasonality quarter
Recovery in a low seasonality quarter LED BY KEY OFF-PREMISE BRAND-MARKET COMBINATIONS AND FAVOURED BY COMPARISON BASE AS WELL AS AN EARLY EASTER EFFECT (1) Q1 2021 Net sales organic performance by Region Q1 2021 Net sales organic performance by Priority .Comparison base (organic growth Q1 2020 vs Q
Slide 8: US remains the largest market
US remains the largest market Q1 2021 Net sales €397.9 million Organic growth: +17.9% Asia Pac: 9% of total Organic growth: +42.9% Americas: 50% of total Organic growth: +20.5% NCEE: 17% of total Organic growth: +16.3% SEMEA: 24% of total Organic growth: +6.1% > Developed vs. emerging markets in Q1
Slide 9: Sales commentary by key market Q1 2021
Sales commentary by key market Q1 2021 AMERICAS Change Change vs. Q1 2020 vs. Q1 2019 organic organic USA 15.0% 16.9% Canada 28.2% 40.9% Jamaica 33.9% 23.3% Other countries 31.4% 21.0% Americas 20.5% 20.0% Perimeter 0.0% Forex -12.3% Total Change 8.3% > USA +15.0% • Very positive performance, thanks
Slide 10: Sales commentary by key market Q1 2021
Sales commentary by key market Q1 2021 SEMEA Change Change vs. Q1 2020 vs. Q1 2019 Organic organic Italy -0.7% -24.9% France 65.7% 34.5% GTR -38.7% -48.6% Other countries 11.7% 11.5% Southern Europe, Middle East & Africa 6.1% -17.9% Perimeter 6.3% Forex -0.3% Total Change 12.1% > ITALY -0.7% • A sli
Slide 11: Sales commentary by key market Q1 2021
Sales commentary by key market Q1 2021 NCEE Change Change vs. Q1 2020 vs. Q1 2019 organic organic Germany 8.1% 7.5% United Kingdom 36.2% 89.0% Russia 25.6% 61.9% Other countries 16.2% 16.2% North, Central & Eastern Europe 16.3% 23.7% Perimeter -12.1% Forex -4.1% Total Change 0.1% GERMANY +8.1% > Sol
Slide 12: Sales commentary by key market Q1 2021
Sales commentary by key market Q1 2021 ASIA PAC Change Change vs. Q1 2020 vs. Q1 2019 organic organic Australia 22.6% 43.6% Other countries 128.6% 52.0% Asia Pacific 42.9% 46.0% Perimeter 0.8% Forex 6.3% Total Change 50.0% AUSTRALIA +22.6% > Continued strong growth in the off-premise skewed market,
Slide 13: Net Sales by Brand
Net Sales by Brand Q1 2021 Net sales €397.9 million Organic growth: +17.9% Rest of Portfolio: 12% Rest of own brands 6% Agency brands & Co-packing 6% Local Priorities, 13% Organic change: +25.5% (Organic change +18.6% vs Q1 2019) Global Priorities, 57% Organic change +16.2% (Organic change +11.8% vs
Slide 14: Aperol showing good momentum ahead of peak season
Q1 Option only. H1/9M/FY as usual Aperol showing good momentum ahead of peak season > Overall stable performance in a low seasonality quarter (+0.1%), driven by growth in Germany, France, Russia, Austria, Switzerland, the UK and Australia compensating the shipment weakness in the US, penalized by a
Slide 15: Campari benefitting from strong home consumption trends
Campari benefitting from strong home consumption trends > Positive performance (+6.5%) driven by Jamaica, Germany, the UK, Switzerland, France and South America, helping offset the decline in core Italy due to on-premise closures. The US was also penalized by a tough comparison base in connection wi
Slide 16: Other Global Priorities sales review
Q1 Option only. H1/9M/FY as usual Other Global Priorities sales review Organic sales growth vs.Q1 2020 Organic sales growth vs.Q1 2019 > Wild Turkey: very strong growth against an easy comparison base, driven by the core US market, thanks to solid category momentum, with both Wild Tukey bourbon and
Slide 17: Regional Priorities sales review
Regional Priorities sales review Organic sales growth vs.Q1 2020 Organic sales growth vs.Q1 2019 63.9% > Espolòn: strong growth driven by core US market, while seeding markets 82.3% of Australia and Canada also grew > Bulldog: positive performance against an easy comparison base, driven 23.9% by gro
Slide 18: Local Priorities and other brands sales review
Local Priorities and other brands sales review Organic sales growth vs.Q1 2020 Organic sales growth vs.Q1 2019 > Campari Soda: positive performance driven by home consumption in core Italy thanks to its cocktail-to-go format > Crodino: negative overall due to core on-premise skewed Italian market, w
Slide 19: Table of contents
Table of contents Results Summary Sales Results Consolidated P&L Net Financial Debt Marketing Initiatives Conclusion & Outlook Annex 19
Slide 20: EBIT adjusted
EBIT adjusted Change vs. Q1 2020 vs. Q1 2019 Reported Organic Perimeter Forex Organic Q1 2021 Q1 2020 change change effect effect change € million % of sales € million % of sales % % % % % Net Sales 397.9 100.0% 360.2 100.0% 10.5% 17.9% -0.8% -6.6% 12.1% Gross margin 231.6 58.2% 209.0 58.0% 10.8% 17
Slide 21: EBIT adjusted
EBIT adjusted > Gross margin: on a reported basis up +10.8% in value, to 58.2% on sales (+20 bps accretion): • Organic change of +17.5% in value, slightly lower than topline growth, leading to -20 bps margin dilution due to unfavorable sales mix, affected by the outperformance of lower-margin Espolò
Slide 22: Q1 2021 Consolidated P&L – Profit before taxation
Q1 2021 Consolidated P&L – Profit before taxation Q1 2021 Q1 2020 Reported change % of % of €million €million % sales sales EBIT adjusted 68.5 17.2% 47.9 13.3% 43.1% Operating adjustments (2.1) -0.5% (5.6) -1.5% - Operating profit = EBIT 66.4 16.7% 42.3 11.7% 56.8% Net financial income (charges) (3.
Slide 23: Table of contents
Table of contents Results Summary Sales Results Consolidated P&L Net Financial Debt Marketing Initiatives Conclusion & Outlook Annex 23
Slide 24: Deleverage in Q1 2021 driven by positive cash generation
Deleverage in Q1 2021 driven by positive cash generation Δ 31 March 2021 vs. € million 31 March 2021 31 December 2020 31 December 2020 Short-term cash/(debt) (A) 297.2 276.6 20.5 - Cash and cash equivalents 580.5 548.1 32.4 - Bank loans (252.5) (244.3) (8.2) - Lease (14.0) (13.9) (0.1) - Others fina
Slide 25: Table of contents
Table of contents Results Summary Sales Results Consolidated P&L Net Financial Debt Marketing Initiatives Conclusion & Outlook Annex 25
Slide 26: Introducing RARE division, a new dedicated approach to luxury offerings
Introducing RARE division, a new dedicated approach to establish Campari Group as a top purveyor of luxury offerings in the US and key global markets VISION Establish Campari Group as a top supplier of luxury offerings in the US and key global markets >$700 MISSION Unleash the potential of super-pre
Slide 27: The Camparino in Galleria – Red Passion in the heart of Milan
The Camparino in Galleria – Red Passion in the heart of Milan The Camparino – prestigious awards We are proud to announce that Camparino in Galleria was awarded the gold medal in two categories of Barawards 2020. The Camparino has been awarded the first place as ‘Bar Revelation of the year’. The Ca
Slide 28: Aperitifs: Reinforcing home-consumption worldwide
Aperitifs: Reinforcing home-consumption worldwide APEROL CAMPARI The Campari Red Passion campaign, activated in the United States, Spain and Argentina ‘Together We Can Create’ campaign tested the consumer’s ability to make the all important The Aperol Spritz ready-to-enjoy was launched perfect serve
Slide 29: Brand Awards: Internationally recognized for high quality
Brand Awards: Internationally recognized for high quality WILD TURKEY APPLETON ESTATE Wild Turkey received two awards from the 2021 Appleton Estate received two medals from the prestigious Spirits Drinks International Annual Brand Report: Business Rum Masters Competition 2021: -7th Best Selling Amer
Slide 30: Table of contents
Table of contents Results Summary Sales Results Consolidated P&L Net Financial Debt Marketing Initiatives Conclusion & Outlook Annex 30
Slide 31: Conclusion and Outlook
Conclusion and Outlook > A satisfactory start of the year with continuing underlying brand momentum, driven by sustained home consumption, amplified also by easy comparison base as well as early Easter effect in a low seasonality quarter > Looking at the remainder of 2021: > Underlying performance:
Slide 32: Table of contents
Table of contents Results Summary Sales Results Consolidated P&L Net Financial Debt Marketing Initiatives Conclusion & Outlook Annex 32
Slide 33: Annex
Annex – 1 Net sales by region and key market Annex – 2 Net sales by brand cluster Annex – 3 Q1 2021 P&L Annex – 4 Financial debt details Annex – 5 Exchange rates effects 33
Slide 34: Net sales by region & key market
Annex - 1 Net sales by region & key market Consolidated Net sales by region Change vs. Change vs. Q1 2021 Q1 2020 Change vs. Q1 2020 Q1 2020 Q1 2019 €m % €m % % organic perimeter forex organic Americas 197.3 49.6% 182.2 50.6% 8.3% 20.5% 0.0% -12.3% 20.0% Southern Europe, Middle East & Africa 94.6 23
Slide 35: Net sales by region & key market
Annex - 1 Net sales by region & key market Southern Europe, Middle East & Africa by market Change vs. Q1 Change vs. Q1 Q1 2021 Q1 2020 Change vs. Q1 2020 2020 2019 €m % €m % % organic perimeter forex organic Italy 57.6 60.8% 57.9 68.5% -0.5% -0.7% 0.1% 0.0% -24.9% France 19.0 20.1% 8.7 10.3% 118.2%
Slide 36: Net sales by brand cluster
Annex - 2 Net sales by brand cluster Change vs. Q1 Change vs. Q1 Q1 2021 Q1 2020 Change vs. Q1 2020 2020 2019 €m % €m % % organic perimeter forex organic Global Priorities 226.6 56.9% 208.7 57.9% 8.6% 16.2% 0.0% -7.6% 11.8% Regional Priorities 72.2 18.1% 60.3 16.7% 19.8% 26.4% 1.5% -8.1% 19.7% Local
Slide 37: Q1 2021 P&L
Annex - 3 Q1 2021 P&L Q1 2021 Organic margin Reported Organic Perimeter Forex Q1 2021 Q1 2020 accretion/ change change effect impact (dilution) € million % of sales € million % of sales % (bps) (3) % % % Net Sales 397.9 100.0% 360.2 100.0% 10.5% 17.9% -0.8% -6.6% COGS (1) (166.3) -41.8% (151.2) -42.
Slide 38: Financial debt details
Annex - 4 Financial debt details Eurobonds and Term loan composition as of 31 March 2021 Outstanding Original As % of Issue date Maturity Type Currency Coupon Amount tenor total (€ million) Apr 5, 2017 Apr-22 Unrated Eurobond EUR 1.768% 50 5 years 4% Apr 5, 2017 Apr-24 Unrated Eurobond EUR 2.165% 15
Slide 39: Exchange rates effects
Annex - 5 Exchange rates effects Average exchange rate Period end exchange rate change Q1 2021 change 31 March 2021 Q1 2021 Q1 2020 31 March 2021 31 December 2020 vs Q1 2020 vs 31 December 2020 : 1 Euro : 1 Euro % : 1 Euro : 1 Euro % US Dollar 1.205 1.102 -8.6% 1.173 1.227 4.7% Canadian Dollar 1.527
Slide 40: Disclaimer
Disclaimer This document contains forward-looking statements that relate to future events and future operating, economic and financial results of Campari Group. By their nature, forward-looking statements involve risk and uncertainty because they depend on the occurrence of future events and circums
Slide 41: Thanks.
Thanks. CONTACTS i n ve s t o r. r e l a t i o n s @ c a m p a r i . c o m www.camparigroup.com @GruppoCampari CampariGroup @camparigroup CampariGroup
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