Davide Campari-Milano (CPR) Q2 2025 earnings summary

Executive summary

• H1 2025 net sales reached €1,528 million, up 0.3% year-over-year, with organic growth of 0.1% and a 2.0% perimeter boost mainly from Courvoisier, offset by a -1.8% FX effect.

• Delivered resilient H1 2025 results with Q2 organic growth of 3.5%, driven by strong execution, brand investments, and outperformance in key markets, especially in aperitifs and agave.

• Maintained pricing discipline and commercial excellence despite challenging consumer environments and economic headwinds.

• Strategic initiatives on track, including portfolio streamlining and cost containment, with no major acquisitions planned.

• Profitability supported by gross margin accretion and initial cost savings, despite increased brand investment ahead of peak season.

Financial highlights

• Adjusted EBIT for H1 2025 was €351.8 million (23.0% margin), down 2.3% year-over-year; reported EBIT at €340.9 million.

• Adjusted EBITDA reached €426.6 million (27.9% margin), up 1.9% year-over-year.

• Net profit was €206.4 million, down 6.0% year-over-year; adjusted net profit at €216.2 million, down 9.5%.

• Free cash flow was €34.9 million, a significant improvement from -€60.1 million in H1 2024, mainly due to lower extraordinary capex.

• Net financial debt stood at €2,382 million, stable versus year-end 2024, with leverage at 3.2x EBITDA-adj.

Outlook and guidance

• Full-year guidance maintained: 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 mitigation; not included in current guidance.

• Medium/long-term outlook confirmed: gradual return to mid-to-high single-digit organic net sales growth in normalized macro environment.

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

• Q3 peak season performance seen as fundamental for full-year visibility; more detailed outlook to be provided in November.