Davide Campari-Milano (CPR) Q4 2025 earnings summary

Executive summary

• Achieved organic top-line growth of 2.4% year-over-year in 2025, with reported net sales at €3,051 million, driven by growth in 24 countries and all brand houses despite FX headwinds and portfolio streamlining.

• EBIT-adjusted rose by 5.3% to €637 million, with margin accretion of 60 basis points, supported by gross margin gains and cost containment.

• Net profit-adjusted increased by 2.7% to €386 million; reported net profit surged 71.7% to €346 million due to lower operating adjustments and one-off items.

• Outperformed in key markets, gaining share in nearly every region, especially in the U.S. on-premise channel and EMEA.

• Leverage ratio improved to 2.5x, a year ahead of plan, supported by strong cash generation and disciplined capital allocation.

Financial highlights

• Organic net sales growth of 2.4% year-over-year; reported sales down 0.6% due to FX (-3.0%) and minor perimeter impact (+0.1%).

• Adjusted EBIT reached €637 million (+5.3% year-over-year), with margin up 60bps to 20.9%; gross margin up 100bps, mainly from input cost benefits.

• EBITDA-adjusted at €785 million (+7.2%), with margin at 25.7%.

• Adjusted net profit at €386 million (+2.7%); reported net profit at €346 million (+71.7%).

• Recurring free cash flow conversion at 73% (FCF at €571 million); net financial debt reduced by €419 million year-over-year to €1,958 million.

Outlook and guidance

• Targeting mid- to high single-digit organic top-line growth in the medium term, with continued margin accretion and strong cash generation.

• 2026 profitability expected to be H2-weighted due to front-loaded A&P and €30 million tariff impact; gross margin to see limited expansion.

• Negative perimeter effect of €70 million on topline and €30 million on EBIT-adjusted expected from non-core brand disposals.

• SG&A containment program to deliver cumulative 200bps benefit by end-2027.

• Dividend per share up 54% to €0.10 (35% payout ratio), with further increases possible as deleverage continues.