Davide Campari-Milano (CPR) Q4 2024 earnings summary

Executive summary

• Achieved 2.4% organic and 5.2% total net sales growth in 2024 despite macroeconomic, geopolitical, and weather-related headwinds, with resilience across key brands and regions and outperformance versus competitors.

• Profitability was impacted by continued investments in route-to-market, systems, supply chain, and business infrastructure.

• Strategic focus shifted to efficiency, cost control, and prioritizing existing brands, with M&A activity paused to digest recent acquisitions.

• Transitioned to a House of Brands structure to drive focused growth and operational efficiency.

• Sustainability progress included significant reductions in GHG emissions, water usage, and waste to landfill, and improved ESG ratings.

Financial highlights

• Net sales reached €3,070 million (+2.4% organic, +5.2% reported YoY), with Courvoisier contributing to perimeter growth.

• Adjusted EBIT declined 2.5% to €605 million, with margin at 19.7% (-100bps organic); adjusted group net profit was €376 million (-3.7% YoY), reported net profit €202 million (-39.0% YoY).

• Recurring EBITDA was €733 million (+0.5% YoY); recurring free cash flow reached €586 million, with FCF conversion at 80%.

• SG&A rose 8.6% to €648 million, with 55% of the increase due to investments in commercial and marketing capabilities and new market entries.

• Net debt/EBITDA-adjusted at 3.2x (up from 2.5x), mainly due to acquisitions and extraordinary investments.

Outlook and guidance

• 2025 is expected to be a transition year with moderate organic topline growth and flat EBIT margin, with improvement skewed to H2.

• Q1 2025 expected to see a low single-digit decline due to Easter phasing, with progressive improvement through the year.

• A&P investments to reach 17–17.5% of net sales; SG&A containment to deliver ~50bps benefit.

• Potential €35 million impact from US tariffs on imports from Mexico and Canada in 2025, with up to €100 million annualized if extended to Europe.

• Medium-term guidance: return to mid-to-high single-digit organic net sales growth and gross margin accretion as macro conditions normalize.