Davide Campari-Milano (CPR) Q2 2025 earnings summary

Executive summary

• Net sales for H1 2025 reached €1,528 million, up 0.3% year-over-year, with organic growth of 0.1% and a 2.0% perimeter effect, offset by a -1.8% FX impact; Q2 saw marked improvement and sector outperformance, especially in aperitifs and agave.

• Group net profit was €206.4 million, down 6.0% year-over-year, with adjusted net profit at €216.2 million, down 9.5%; profitability supported by gross margin accretion and initial cost savings despite higher brand investments.

• Strategic initiatives advanced, including portfolio streamlining (sale of Cinzano and other non-core assets) and cost containment, with no major acquisitions planned.

• Maintained pricing discipline and commercial excellence despite challenging macroeconomic and competitive conditions.

• Cash-generative profile maintained, with strong execution and brand investments driving Q2 acceleration.

Financial highlights

• Organic top-line growth was flat in H1, with Q2 organic growth at +3.5%; reported top-line growth was +0.3% due to offsetting FX and perimeter effects.

• Gross margin improved to 61.1% of net sales, up 140 bps year-over-year, driven by lower input costs and sales mix.

• Adjusted EBITDA reached €426.6 million (27.9% margin), up 1.9% year-over-year; adjusted EBIT was €351.8 million (23.0% margin), down 2.3%.

• Recurring free cash flow at €113 million, with free cash flow at €34.9 million, a significant improvement from H1 2024.

• Net financial debt stable at €2,382 million; leverage ratio improved to 3.2x EBITDA-adjusted from 3.5x post-Courvoisier acquisition.

Outlook and guidance

• Full-year 2025 guidance confirmed: moderate organic top-line growth and flattish EBIT-adjusted margin before tariff impact.

• Tariffs could impact EBIT by €4–45 million in 2025, depending on scope and rates; FX headwinds expected in H2 due to US dollar weakness.

• Medium/long-term outlook: gradual return to mid- to high-single-digit organic net sales growth and margin accretion from premiumization and cost efficiencies.

• SG&A cost containment on track for 50 bps benefit in 2025 and 200 bps over three years.

• Further strategic update planned for November after Q3 results.