Davide Campari-Milano (CPR) Q1 2026 earnings summary

Executive summary

• Achieved +2.9% organic net sales growth in Q1 2026, with broad-based gains across regions and brands, supported by targeted inventory optimization in the US on non-priority brands.

• Gained market share in almost all markets, with strong industry outperformance and positive sell-out trends in the US and Europe.

• Accelerated innovation and geographic expansion, including launches like Aperol new bottle, Aperol RTD, and Campari Spritz RTS.

• Inventory optimization in the US on non-priority brands impacted quarterly figures by EUR 10 million, but is minor relative to annual US sales.

• APAC and GTR accounted for 7% of total sales, declining by 1.6% due to a 13.5% drop in GTR, while APAC grew 1.9%; Australia, China, and India posted solid growth.

Financial highlights

• Q1 2026 organic net sales growth of +2.9% year-over-year, broad-based across all regions, with net sales at €643 million, down 3.4% year-over-year due to negative FX and perimeter effects.

• Europe delivered +1.9% organic growth, led by the UK, Italy, and Germany; France impacted by a high comparison base.

• North America grew +2.2% organically, with solid US trends and recovery in Jamaica, but offset by inventory optimization and weak cognac market.

• Developing markets saw +12.7% organic growth, driven by Brazil and Argentina.

• APAC & GTR: 7% of sales, -1.6% organic growth, with GTR down 13.5% and APAC up 1.9%.

Outlook and guidance

• Full-year 2026 guidance confirmed at circa +3% topline growth, incorporating inventory optimization, ongoing volatility, and industry outperformance.

• EBIT-adjusted margin accretion skewed to H2 due to front-loaded A&P investments and US tariff impacts (~€30 million for the year).

• SG&A containment program to deliver up to 140bps margin benefit by end-2027.

• Confident in balancing risks and opportunities, with continued investment in brands and innovation.

• Monitoring cost inflation, logistics, and geopolitical risks, but current impact is limited.