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%, reflecting higher brand investments and FX headwinds.

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

• Strategic initiatives advanced, including portfolio streamlining, cost containment, and no major acquisitions planned.

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

Financial highlights

• Gross margin improved to 61.1% of net sales, up 40bps year-over-year, with Q2 acceleration mainly due to input cost phasing and agave price benefits.

• Free cash flow was €34.9 million (vs. -€60.1 million in H1 2024); recurring free cash flow at €113 million, with a high conversion rate of 27%.

• Net financial debt stood at €2,382 million, stable versus year-end 2024; leverage ratio improved to 3.2x from 3.5x post-Courvoisier acquisition.

• Capex investments totaled €82 million, with €39 million in extraordinary capex for capacity expansion.

• Dividend of €78 million paid and share buyback of €22 million completed in H1 2025.

Outlook and guidance

• Guidance for 2025 confirmed: moderate organic top-line growth and flat EBIT-adjusted margin before tariff impact.

• Tariffs could impact EBIT by €4–45 million in 2025, depending on scope and rates; not included in current guidance.

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

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

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