Davide Campari-Milano (CPR) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw a soft start with organic net sales down 4.2% (€28M), mainly due to macroeconomic volatility, Easter timing, and logistics delays, but April rebounded strongly in affected markets.

• Sell-out outperformed in most geographies, with double-digit growth in over 10 less developed markets and strong brand resilience, especially in April.

• Strategic focus remains on long-term brand building, cost containment, portfolio streamlining, and geographic expansion, with no acquisitions planned and ongoing CapEx for production expansion.

Financial highlights

• Net sales grew 0.3% year-over-year to €666M, with organic sales down 4.2%, perimeter impact +4.3%, and FX +0.2%.

• Adjusted EBITDA at €174M (26.1% margin), down 10.9% organically and 4.1% reported; gross margin flat at 58.8%.

• Adjusted EBIT at €136M, down 17.2% organically and 10.2% reported; margin at 20.4%.

• Adjusted pretax profit at €113.7M, down 22.4% year-over-year.

• Net financial debt at €2,460M, leverage ratio at 3.4x net debt/EBITDA, with deleveraging expected in H2.

Outlook and guidance

• Full-year 2025 guidance confirmed, but visibility remains low due to macroeconomic uncertainty and potential tariff impacts.

• Negative EBIT impact from tariffs estimated at €25M for 2025 (not annualized), with mitigation actions under review and not included in guidance.

• Cost containment program on track, with benefits expected from H2; SG&A to be reduced by 50bps in 2024 and 200bps by 2027.

• Medium/long-term outlook targets mid-to-high single-digit organic net sales growth and margin accretion by 2027.

• A&P as a percentage of net sales expected at 17%-17.5% for the full year.