Davide Campari-Milano (CPR) Q3 2025 earnings summary

Executive summary

• Achieved resilient organic growth of +1.5% in net sales for the first nine months of 2025, with total reported net sales at €2,281 million, despite a challenging macroeconomic environment across all regions and outperformance in key markets, especially in sell-out versus the industry.

• Maintained strong focus on commercial execution, brand investments, and cost containment, supporting profitability and positioning for market normalization.

• Strategic priorities advanced: portfolio streamlining (disposals of Tannico, Cinzano, Australian plant), CapEx for production expansion, and a pause on M&A.

• Leadership transition: Paolo Marchesini to become Vice Chairman after a long CFO tenure, with Francesco Mele appointed as new Group CFO effective November 2025.

Financial highlights

• Net sales reached €2,281 million, up 1.5% organically and 0.2% reported year-over-year; Q3 organic growth was 4.4%.

• Adjusted EBIT was €517.4 million (+3.6% reported, +1.4% organic), margin at 22.7% (up 80bps reported, flat organically).

• Adjusted EBITDA was €629 million (+6.4% reported, +4.8% organic), margin at 27.6%.

• Group pre-tax profit-adjusted at €440.4 million (-2.6% year-over-year); reported pre-tax profit at €398.8 million (-5.7%).

• Gross margin improved by 90bps to 61.2% in 9M 2025, supported by input cost benefits and positive mix.

Outlook and guidance

• Full-year guidance maintained for moderate organic topline growth and flattish EBIT-adjusted margin, with tariff impacts now absorbed and efficiency gains in COGS and SG&A offsetting higher A&P investments.

• Guidance assumes no further deterioration in consumer confidence in Europe or the US, especially in the on-trade.

• Medium- to long-term outlook expects a return to mid- to high-single-digit organic net sales growth and 200bps SG&A margin benefit over three years.