Davide Campari-Milano (CPR) Q2 2026 earnings summary

Executive summary

• Organic net sales grew 2.7% in H1 2026, with Q2 up 2.5%, despite FX and perimeter headwinds; innovation in aperitifs and strong sell-out performance supported growth.

• Adjusted EBIT rose 8.5% organically to €358M, with margin up 130bps; reported EBIT fell 26.8% due to portfolio streamlining write-downs.

• Adjusted net profit increased 4.7% to €226M; reported net profit dropped 37.7% to €129M due to non-recurring items.

• Strategy focused on priority brands, innovation, geographic expansion, and ongoing portfolio optimization.

• Portfolio streamlining continued with disposals of non-strategic brands, improving focus and funding base.

Financial highlights

• Net sales: €1,512M (-1.0% reported, +2.7% organic); FX (-1.8%) and perimeter (-2.0%) impacts.

• Gross margin improved by 130bps organically to 62.6%, driven by favorable mix, cost productivity, and lower tariffs.

• Adjusted EBIT margin: 23.7% (+130bps organic); adjusted EBITDA: €430M (+6.5% organic, +0.8% reported), margin at 28.4%.

• Recurring free cash flow conversion before working capital changes at 64%, in line with historical averages; free cash flow negative at €78M due to seasonal working capital absorption and higher capex.

• Net financial debt: €2,068M; leverage at 2.6x adjusted EBITDA.

Outlook and guidance

• Full-year 2026 organic topline growth guidance confirmed at ~3%.

• EBIT-adjusted margin guidance raised, with €10M benefit from improved tariff environment; negative perimeter and FX effects anticipated.

• Brand investment to increase, with ongoing cost containment supporting margins; disciplined capital allocation to be maintained.

• Portfolio streamlining to continue, with disposals expected to be EBIT and gross margin accretive.

• Potential US tariff refund could offset H2 COGS pressure from geopolitical/logistics issues.