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MarketScreener Homepage  >  Equities  >  Italian Stock Exchange  >  Davide Campari-Milano N.V.    CPR   NL0015435975

DAVIDE CAMPARI-MILANO N.V.

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Davide Campari Milano N : 2020 Nine Month results investor presentation

10/27/2020 | 09:05am EST

2020 Nine Month

Results

Investor Presentation

TABLE OF CONTENTS

Results Summary

Sales Results

  • By region
  • By brand

Consolidated P&L

Net Financial Debt

Marketing initiatives & Developments

Conclusion & Outlook

Annex

Nine month results to 30 September 2020

2

RESULTS FOR NINE MONTHS ENDED 30 SEPTEMBER 2020

OVERALL PERFORMANCE IN Q3 IMPROVED, BOOSTED BY IMPACT OF STAYCATION ON APERITIFS IN PEAK SUMMER SEASON

Key figures

Net sales

of which: Global priorities

Regional priorities

Gross profit

margin accretion (bps)

(2)

EBIT adjusted

(3)

margin accretion (bps)

(2)

EBITDA adjusted

(3)

margin accretion (bps)

(2)

Group pre-tax profit adjusted

(4)

Net Debt at period end

9M 2020

Change vs. 9M 2019

Q3 2020

€ million

% on sales

Reported

Organic

FX

Perimeter

(1)

Organic change

1,282.5

100.0%

-1.6%

-2.8%

-1.5%

+2.7%

+12.9%

-2.6%

+10.7%

-1.3%

+18.7%

761.5

59.4%

-5.8%

-7.1%

+0.1%

+1.2%

+10.0%

-260bps

-270bps

+100bps

-90bps

-160bps

248.5

19.4%

-13.7%

-15.1%

+3.2%

-1.9%

+11.2%

-270bps

-280bps

+100bps

-90bps

-30bps

307.1

23.9%

-9.7%

-11.7%

+2.3%

-0.3%

+10.6%

-210bps

-240bps

+100bps

-70bps

-50bps

220.0

-15.1%

1,068.2

  1. Mainly including the effect from the acquisitions of Rhumantilles, Ancho Reyes and Montelobos (completed in Q4 2019) and the French distributor Baron Philippe de Rothschild France
    Distribution S.A.S., now named Campari France Distribution S.A.S. ('RFD') (completed at the end of February 2020). For the latter, only the third party brands managed by RFD were included in the perimeter effect
  2. Basis points rounded to the nearest ten
  3. Before operating adjustments of €(48.3) million in 9M 2020 and €(13.9) million in 9M 2019
  4. Before operating and financial adjustments as well as non-recurringearn-out liabilities revisions, totalling €(29.8) million in 9M 2020 (vs. €(13.9) million adjustments in 9M 2019)

Nine month results to 30 September 2020

3

KEY HIGHLIGHTS

UNDERLYING BRAND HEALTH CONFIRMED IN CORE MARKETS. TEMPORARY ON-PREMISE RECOVERY IN A CONTINUED CHALLENGING ENVIRONMENT

  • Net Sales
  • EBIT adjusted
  • Pre-taxprofit
  • Net debt
  • The nine month performance showed an organic improvement (-2.8%), driven by a very positive Q3 (+12.9%), while the ongoing effect of the COVID-19 pandemic is still active and challenging many markets with restrictive measures. The Group benefitted from a recovery in Q3, driven by the increased consumption in consumers' home countries, where they spent their holidays rather than travelling abroad ('staycation' effect), which affected in particular the aperitifs in their peak summer season. On-premiseskewed Italian market was up +35.4%, boosted also by favourable weather conditions. There was continued sustained consumption in off-premiseskewed Northern European markets, Australia and Canada. A flat performance in the US was achieved after positive Q3 (+8.9%) driven by Espolòn and the Jamaican rums thanks to strong category momentum, whilst destocking is continuing at wholesaler level
    • By geography: overall decline in SEMEA, despite a positive Q3 result driven by temporary on-premise recovery in Italy alongside positive shipment phasing in France after new route-to-market set up, largely due to weakness in Spain, Africa and GTR. Continued positive trends in core off-premise markets (particularly Germany, the UK, Russia, Canada and Australia). The US was flat overall as destocking continues, while shipments in Espolòn and the Jamaican rums grew. On-premiseskewed and tourism reliant markets within Latin America and the Caribbean declined
    • By brand: in the nine months, Global Priorities declined by -2.6%,despite both Aperol and the Jamaican rums registering growth. Regional priorities were down -1.3% overall, although Espolòn registered very strong growth and Local Priorities were down -0.9%. In Q3, growth was mainly driven by recovery across the high-marginand on-premise skewed aperitif portfolio (Campari, Aperol, Crodino and Campari Soda) and acceleration of Espolòn in the US market
  • Reported change of -1.6%,reflecting positive perimeter effect of +2.7% or €35.4 million, and a negative FX effect of -1.5% or €(19.6) million
  • Organic decline of -15.1% and -280bps margin dilution, due to negative sales mix and lower absorption of fixed costs in connection to COVID-19, was partly mitigated by an improved performance in Q3 (+11.2% with -30bpsdilution, driven by A&P step up)
  • Reported change of -13.7%, with a positive FX effect of €9.3 million (+3.2%) and negative perimeter effect of €(5.4) million (-1.9%)
  • Group pre-tax profit adjusted to €220.0 million, down -15.1%
  • Group pre-tax profit reported to €190.2 million, down -22.4%(1)
  • Net financial debt at €1,068.2 million as of 30 September 2020 vs. €777.4 million as of 31 December 2019, up €290.8 million, mainly due to the acquisitions of RFD and Champagne Lallier, the investment in Tannico, the tax payment related to the disposal of Villa Les Cèdres as well as the dividend payment and the share buyback, for an overall amount of €461.6 million (2) , or up €6.7 million vs. 30 June 2020, with positive free cash flow generated in the third quarter more than offset by the acceleration in the share buyback program
  • Net debt to EBITDA adjusted ratio (3) at 2.4 times as of 30 September 2020, unchanged vs. 30 June 2020 (vs.1.6x as of 31 December 2019)

(1)

Before operating and financial adjustments as well as non-recurringearn-out liabilities revisions, totalling €(29.8) million in 9M 2020 (vs. €(13.9) million adjustments in 9M 2019)

(2)

Of which business acquisitions of €126.6 million, share buyback of €212.3 million, tax payment related to the disposal of Villa Les Cèdres of €60.1 million and dividend payment of €62.9 million

(3)

Calculated as net debt at period end divided by EBITDA adjusted for the last twelve months

4

Nine month results to 30 September 2020

TABLE OF CONTENTS

Results Summary

Sales Results

  • By region
  • By brand

Consolidated P&L

Net Financial Debt

Marketing initiatives & Developments

Conclusion & Outlook

Annex

Nine month results to 30 September 2020

5

TEMPORARY RECOVERY IN ON-PREMISE SKEWED APERITIFS IN Q3, LED BY SEMEA

CONTINUED RESILIENCE IN OFF-PREMISE SKEWED NORTHERN EUROPEAN MARKETS, AUSTRALIA AND CANADA

9M 2020 Net sales by Region

9M 2020 Net sales by Priority

  • Americas: US flat overall with positive performance in Q3 (+8.9%) notwithstanding ongoing destocking, while shipments in Espolòn and the Jamaican rums grew strongly. Continued resilience in off- premise skewed Canada (+13.6%) was unable to offset persistent weakness in Jamaica, Mexico and Brazil
  • SEMEA: core Italy down -11.6% after a positive recovery in Q3 (+35.4%), benefiting from on-premise reopening and good summer weather conditions, further boosted by staycation, while GTR, Spain and Nigeria declined. France benefitted from positive shipment phasing after new route-to-marketset up while South Africa's decline was amplified by route-to-market change
  • NCEE: resilient performance across the region, with solid growth in Q3 (+20.2%), driven by Germany, the UK, Russia and Switzerland, benefitting from staycation and the increase of consumption occasions and frequency
  • Asia Pacific: continued solid growth in Australia, with an acceleration in Q3 (+24.7%), helped offset the decline in Japan, whose performance was affected by route-to-marketchange, and temporary weakness in China

(1)

    1. Including Rest of Portfolio, down -7.2% in 9M 2020
  • Global Priorities: Aperol registered a positive performance (+2.6%), thanks to a solid Q3, alongside the Jamaican rums, while Campari was flattish after a recovery in Q3, largely driven by core Italy. This was unable to offset declines in Wild Turkey, despite more positive Q3 trends, Grand Marnier and SKYY
  • Regional Priorities: overall decline in the nine months despite a very positive trend in Espolòn (+29.8%) which accelerated in Q3
  • Local Priorities: decline in the single-serve aperitifs Campari Soda and Crodino, though mitigated by seasonal rebound in Q3 in Italy. The rest of the portfolio was positive mainly driven by Wild Turkey RTD, Ouzo12 and Cabo Wabo

Nine month results to 30 September 2020

6

STRONG BRAND MOMENTUM IN THE US AND ACROSS APERITIFS IN EUROPE

Campari Group's outperformance vs. US spirits market since lockdown1)

100%

25.0%

80%

20.0%

volume change

60%

15.0%

Outperformance

40%

10.0%

%

%

20%

5.0%

0%

0.0%

8-Mar

8-Apr

8-May

8-Jun

8-Jul

8-Aug

8-Sep

Sustained Aperol outperformance vs. category since lockdown (2) (3)

80%

70%

60%

50%

40%

30%

20%

10%

0%

Campari Group's outperformance in US by key brand since lockdown(1)

240%

210%

change

180%

150%

120%

volume

90%

60%

%

30%

0%

8-Apr

8-May

8-Jun

8-Jul

8-Aug

8-Sep

8-Mar

-30%

Aperol

Campari

Grand Marnier

SKYY franchise

Wild Turkey

Espolon

Sustained Campari outperformance vs. category since lockdown (2) (3)

60%

50%

40%

30%

20%

10%

0%

% Vol Change Aperol

% Vol Change Category

(1)

% Vol Change Campari

% Vol Change Category

US Nielsen data x AOC + Total Liquor represents c.34% of total US off-trade volume. Dates refer to the beginning of week

7

(2)

Lockdown beginning dates: Italy w/e 01/03/2020, Belgium w/e 22/03/2020, Germany w/e 22/03/2020 and UK w/e14/03/2020

(3)

Off-trade volume data until week of: Italy w/e 27/09/2020, Belgium w/e 04/10/2020, Germany w/e 27/09/2020 and UK w/e 02/10/2020. Categories are an industry definition traditionally used for data collection by Data Providers

Source: Italy: IRI (excl. Discount). Category refers to Aperitif and vermouth

Belgium: Nielsen (Total Belgium), Category refers to Bitter and Vermouth. Germany: Nielsen (Total food + Drug + C&C), Category refers to Aperitif, UK: Nielsen (Total food + drug + liquor). Category refers to Liqueurs & Specialties

NET SALES RESULTS FOR THE FIRST NINE MONTHS 2020

GROWTH DRIVERS

Organic

change

-2.8%

-1.5%

+2.7%

% change

€million

1,303,8

-37.1

-19.6

+35.4

1,282.5

9M 2019

Organic

Forex

Perimeter

9M 2020

  • Organic change of -2.8% or €(37.1) million in a continued challenging environment, despite improving trends in Q3 (+12.9%, or €58.6 million)
  • Forex effect of -1.5% or €(19.6) million driven by a deterioration mainly in the emerging markets currencies against the Euro, while the average exchange rate of the USD Dollar was broadly unchanged vs. 9M 2019 (-4.0% or €(18.1) million in Q3 2020 due to also the depreciation of the USD Dollar vs. Q3 2019)
  • Perimeter impact of +2.7% or €35.4 million, mainly due to the effect from the acquisitions of Rhumantilles, Ancho Reyes and Montelobos (completed in Q4 2019) as well as RFD (completed at the end of February 2020), net of discontinuation of agency brands, mainly in Northern Europe (+3.9% or €17.6 million in Q3 2020)

Nine month results to 30 September 2020

8

NET SALES BY REGIONS & KEY MARKETS IN 9M 2020

US REMAINS THE LARGEST MARKET WITH 28.9% OF GROUP NET SALES

9M 2020 Net sales €1,282.5 million

Organic growth -2.8%

Asia Pac: 7.0% of total Organic growth: +5.5%

NCEE:

22.8% of total

Organic growth: +11.3%

SEMEA: 27.2 % of total Organic growth: -14.2%

Australia 5.5%

Others 1.5%

Others 7.3%

UK 2.8%

Russia 2.2%

Germany 10.4%

Others 2.6%

GTR 0.5%

France 5.6%

Italy 18.4%

USA 28.9%

Americas: 43.1% of total

Organic growth: -3.6%

Jamaica 4.8%

Canada 3.5%

Brazil 1.8%

Mexico 1.3%

Argentina 1.2%

Others 1.5%

  • Developed vs. emerging markets in 9M 2020 (1) : 85% vs. 15%
  • Group on-premise vs. off-premise split based on FY 2019 net sales: 40% vs. 60%

(1) Key emerging markets include Jamaica, Russia, Brazil, Argentina, Mexico, South Africa, Nigeria and Peru

Nine month results to 30 September 2020

9

AMERICAS (1) : -3.6% ORGANIC

% change

-3.6%

-2.5%

+0.6%

€million

584.7

(20.8)

-14.9

+3.2

552.2

9M 2019

Organic

Forex

Perimeter

9M 2020

Organic growth by key market in 9M 2020

Regional net sales quarterly growth

Q1 Q2 Q3

2020 -0.9%-13.5% 4.3%

2019 13.1% 7.3% 0.5%

> US (2)

+0.1%

Overall flattish performance affected by ongoing destocking at wholesaler level. Positive shipment performance in Q3 (+8.9%) was largely driven by the strong

performance of Espolòn and Jamaican rums thanks to strong category momentum, coupled with a favourable comparison base (Q3 2019: -2.8%). The strong performances

of Espolon and Jamaican rums helped offset the shipment declines in SKYY and Wild Turkey affected by the destocking, as well as Grand Marnier and Aperol, which

suffered from their strong exposure to the on-premisechannel. Depletions continued to grow above shipments (+13.4% in Q3) and brand momentum in the off-premise

continues to be strong across the whole portfolio with sell-out at +30.8% overall and strong double-digit growth in core brands since lockdown (3), consistently outperforming

the local market by +10.4 percentage points

> Jamaica

-7.6%

Overall decline due to on-premiserestrictions and reduced touristic flows, amplified by a very tough comparison base (+17.3% 9M 2019). Wray&Nephew Overproof rum

continued to register growth

> Canada

+11.1%

Resilient growth continued in the largely off-premise market driven by core Forty Creek, Grand Marnier and Jamaican rum portfolio while growth in Campari,

SKYY and Aperol accelerated in Q3

> Brazil

-11.4%

On-premised skewed Brazilian market remains challenged with a negative performance across the portfolio, particularly in Campari, Aperol and SKYY while the

local Brazilian brands also registered weakness in Q3

> Others

-23.5%

Mexico declined by -34.3% with a less negative Q3 (-6.8%)as positive momentum in SKYY RTD and Aperol returned while Argentina grew by +4.6% after a very

positive third quarter driven by shipments recovery, following a weak first half, in the context of an unstable economy

(1) Split on-premise vs. off-premise based on net sales of FY 2019 at regional level: 35% vs. 65%

Nine month results to 30 September 2020

10

(2) Split on-premise vs. off-premise based on net sales of FY 2019 at market level: 30% vs. 70%

(3) Source: US Nielsen data xAOC+Total Liquor, representing c.34% of total US off-trade volume, from W/E March 7th, 2020 till W/E October 3rd 2020

SEMEA (1) : -14.2% ORGANIC

% change

-14.2%

+0.1%

+10.3%

€million

362.6

(51.6)

+0.2

+37.5

348.7

9M 2019

Organic

Forex

Perimeter (2)

9M 2020

Organic growth by key market in 9M 2020

Regional net sales quarterly growth

Q1 Q2 Q3

2020 -23.0%-39.8% 23.8%

2019 6.4% 8.6% 8.9%

> Italy

-11.6%

> Others -21.6%

  • Overall decline mitigated by a very positive Q3 result (+35.4%) as the on-premise focused market (accounting for ca. 70% of the market net sales in FY 2019) began to progressively reopen during the key summer season. The entire portfolio registered growth in the third quarter, most notably the high margin aperitifs (Aperol and Campari) and the single-serve aperitifs (Campari Soda and Crodino), with the latter helped by a seasonal rebound. The outperformance was driven by the short-termreaction to lifting of restrictive measures as well as a 'staycation' effect which drove domestic consumption, offsetting the lack of international tourism, alongside very favourable weather conditions. The evolution towards the end of Q3 in the on-premiseis characterized by renewed signs of uncertainty due to the resurgence of the pandemic
  • France grew double-digit as the market benefitted from the positive shipment phasing after destocking ahead of the new route-to-marketset up, driven by Aperol, Riccadonna and Campari. Spain declined -45.4% as the on-premise skewed market remains severely impacted by COVID-19 and the subsequent restrictions, as well as reduced tourism. Within Africa, Nigeria grew by low-single digits while South Africa's decline was amplified by the route-to-market change
  • Global Travel Retail (-64.8%)remains highly challenged as the travel industry continues to be severely impacted across all channels
  1. Incl. Global Travel Retail. Split on-premise vs. off-premise based on net sales of FY 2019 at regional level: 65% vs. 35%
  2. Perimeter effect largely driven by first-time consolidation of Rhumantilles from Q4 2019 and RFD third-party distribution business from February 2020

Nine month results to 30 September 2020

11

NCEE (1) : +11.3% ORGANIC

% change

€million

Organic growth by key market in 9M 2020

+11.3%

-0.7%

-2.0%

268.7

30.5

-2.0

-5.3

291.8

9M 2019

Organic

Forex

Perimeter

9M 2020

Regional net sales quarterly growth

Q1

Q2

Q3

2020

6.6%

5.4%

20.2%

2019

11.6%

4.2%

10.4%

> Germany

+11.6%

Solid growth overall in a predominantly off-premise market (accounting for ca.70% of the market sales in FY 2019) with an acceleration in Q3 (+25.5%) linked to

staycation boosting the core aperitif brands of Aperol (+36.8%) and Campari (+28.4%) while the non-alcoholicaperitif Crodino also grew (+40.8%), albeit off a small

base. Positive overall growth in Bulldog, The GlenGrant and Ouzo12

> UK

+22.8%

The UK market remains resilient and grew by mid-single digits in Q3, despite the very tough comparison base (+52.6% Q3 2019) as key brands such as Aperol,

Wray&Nephew, Magnum Tonic and Campari all grew strongly

> Russia

+19.8%

Continued positive performance with an acceleration in Q3 (+20.6%) in the predominantly off-premisemarket driven by Aperol, Cinzano vermouth, Mondoro and

Campari

> Others

+4.5%

Switzerland (+12.8%) registered strong growth while Austria, Belgium and Eastern European markets grew by low-single digits

(1) Split on-premise vs. off-premise based on net sales of FY 2019 at regional level: 30% vs. 70%

Nine month results to 30 September 2020

12

ASIA PACIFIC (1) : +5.5% ORGANIC

% change

€million

Organic growth by key market in 9M 2020

+5.5%

-3.4%

0.0%

87.8

+4.8

-3.0

0.0

89.7

9M 2019

Organic

Forex

Perimeter

9M 2020

Regional net sales quarterly growth

Q1

Q2

Q3

2020

3.5%

10.1%

2.9%

2019

-3.1%

4.9%

0.7%

> Australia

+21.0%

Very positive growth in off-premise skewed Australia (accounting for ca. 85% of the market net sales in FY 2019), with an acceleration in Q3, largely thanks to

continued strength in Wild Turkey ready-to-drink, Wild Turkey bourbon, American Honey and The GlenGrant while Campari, Cinzano Vermouth, Frangelico and

Espolòn grew off a small base

> Others

-28.3%

China declined after negative shipment phasing in Q3, despite the strong growth in X-Rated Fusion Liqueur, while New Zealand also declined despite more positive trends

in Q3. Japan declined by double digit due to destocking in connection with the route-to-market change

(1) Split on-premise vs. off-premise based on net sales of FY 2019 at regional level: 30% vs. 70%

Nine month results to 30 September 2020

13

NET SALES BY KEY BRAND

9M 2020 Net sales €1,282.5 million

Organic growth -2.8%

Agency brands & Co-packing 7%

Rest of Portfolio: 14%

Rest of own brands

Local Priorities, 12%

Organic change: -0.9%

Global Priorities, 58%

Organic change- 2.6%

Regional Priorities,16%

Organic change: -1.3%

Nine month results to 30 September 2020

14

BRAND SALES REVIEW

GLOBAL PRIORITIES

Global

Brand sales as

Organic

Organic

% of Group's

change

change

priorities

sales in 9M 2020

in 9M 2020

in Q3 2020

21%

+2.6%

+26.2%

10%

-0.7%

+19.0%

7%

-10.4%

-11.9%

7% (1)

-15.3%

-12.9%

  1. including SKYY Infusions
  • Acceleration in the peak Q3 period driven by double-digitgrowth in core on-premiseskewed Italy (c.35% of total Aperol sales in FY 2019) as the brand benefitted from the staycation effect, combined with the on-premisereopening in the peak summer season. Core off-premise skewed Germany also grew by double digits
  • Elsewhere Aperol registered an overall resilient performance with strong off-premise and online sales in other core markets of France and Switzerland as well as other high potential and seeding markets, in particular, the Russia, Canada and the UK
  • Temporary shipment decline in the US due to destocking given the on-premise skew of the brand, while both depletion and sellout trends remain very positive in the off-premise
  • Very positive Q3 in Italy, up double digit, benefitting from the staycation effect as well as the on-premisereopening, largely offsetting the decline registered in the first half
  • Resilient growth in other markets such as Germany, Nigeria, the US and France was offset by a decline in core Jamaica as well as Brazil and GTR in the nine month period
  • Positive performance in Canada was more than offset by the negative shipment performance in the US, driven by ongoing destocking and its on-premise skew, as well as GTR
  • The sell-out trends and depletions in the US remain positive
  • Continued overall decline in the core US market (-6.9%), driven by ongoing destocking, while core SKYY vodka continued to outperform flavours. SKYY US shipments in the Q3 period improved (-2.1%) continuing to close the gap to more positive depletion and sell-out trends
  • Internationally, the brand declined due to China, Canada and Italy, despite more positive Q3 trends, as

well as South Africa due to route-to-market change

15

Nine month results to 30 September 2020

BRAND SALES REVIEW

GLOBAL PRIORITIES

Global

Brand sales as

Organic

% of Group's

change

priorities

sales in 9M 2020

in 9M 2020

8% (1)(2)

-4.3%

  1. Incl. Wild Turkey straight bourbon, Russell's reserve, American Honey
  2. Wild Turkey ready-to-drink and American Honey ready-to-drink are excluded

Organic

change

in Q3 2020

+2.5%

  • Positive growth overall for Wild Turkey bourbon in Q3 driven by the core markets of the US and Australia. The brand continues to catch-upto more positive depletion and sellout trends within the core US market. This growth was partly mitigated by the double-digitdecline in core Japan, due to destocking in connection with the route-to-market change
  • The premium offering of Russell's Reserve and Wild Turkey Longbranch grew by +9.4% after an acceleration in Q3, driven by the US
  • American Honey declined overall but registered growth in the Q3 period (+16.8%) driven by both the US and Australia, which helped offset the weakness in Nigeria

6% (1)

+6.2%

+8.5%

> Wray&Nephew Overproof grew +24.7%, thanks to continued positive trends in the core markets of Jamaica,

the US and the UK. Canada also grew off a small base, particularly after strong acceleration in Q3

  • Appleton Estate registered an overall negative performance of -1.2%,despite acceleration in the Q3 period (+3.6%), largely driven by Canada, the US and New Zealand, boosted by new packaging and product range
  1. Incl. Appleton Estate and W&N Overproof

Nine month results to 30 September 2020

16

BRAND SALES REVIEW

REGIONAL PRIORITIES

Regional

Brand sales as

% of Group's

priorities

sales in 9M 2020

Tequila

5%

Organic

Organic

change

change

in 9M 2020

in Q3 2020

+29.8% +106.7%

  • Outperformance driven by the core US market (+34.3%) after a very strong Q3 (+131.6%) as the brand benefitted from a strong category momentum as well as an easy comparison base (-17.6% in Q3 2019). Depletion and sell-out trends remain very positive
  • Seeding markets such as Canada and Australia also grew

Gin

>

Continued negative performance driven by GTR and the core Spain, as the market remains hindered by the

1%

-20.2%

-15.6%

COVID-19 pandemic as well as persistent category competition

>

Consumption trends continued to improve in Germany and Belgium

Whiskies

1%

-26.7%

-16.9%

> Overall negative, largely driven by GTR, which continues to suffer from the fallout of the COVID-19 pandemic as

well as South Africa, due to route-to-market change

1%

+7.5%

-1.8%

> Positive performance in Canada overall (+10.8%) while the US market remains weak

Nine month results to 30 September 2020

17

Italian bitters and liqueurs

Sparkling wine & vermouth

BRAND SALES REVIEW

REGIONAL PRIORITIES

Regional

Brand sales as

Organic

Organic

% of Group's

change

change

priorities

sales in 9M 2020

in 9M 2020

in Q3 2020

3%

-18.3%

-8.5%

3% (1)

-8.1%

+10.5%

  1. Incl. Cinzano verrmouth and Cinzano sparkling wines

2%

+8.5%

+20.3%

  • Overall negative performance in the on-premise skewed bitters and liqueurs, largely due to declines in core Italy and the US over the nine month period, despite improving Q3 trends, particularly for Averna as the brand benefitted from key marketing and brand initiatives
  • Vermouth declined overall (-4.9%)but registered solid growth in Q3 (+18.6%) after a recovery in the core markets of Russia and Argentina
  • Sparkling wines were down -10.5%overall despite a more positive Q3 trend (+4.8%) as Eastern European markets as well as Germany recovered
  • Good performance from Mondoro (+10.6%) largely due to core Russia
  • Riccadonna grew by +7.5% thanks to growth in core France, particularly due to phasing in Q3, which recovered after destocking ahead of route-to-market change earlier in the year

Nine month results to 30 September 2020

18

BRAND SALES REVIEW

LOCAL PRIORITIES

Local

Brand sales as

Organic

Organic

% of Group's

change

change

priorities

sales in 9M 2020

in 9M 2020

in Q3 2020

3%

-10.4%

+46.3%

3%

-16.3%

+24.2%

2%

+27.4%

+33.5%

1%

+4.8%

-9.8%

1%

+12.3%

+10.6%

1%

+10.9%

+14.9%

  • Strong recovery in core Italy during the Q3 period, benefiting from the on-premisere-opening in the peak summer season
  • Similarly, the brand registered a strong recovery in core Italy during the Q3 period
  • In other seeding markets, the brand grew overall thanks to growth in Switzerland, Belgium and Germany
  • Strong performance in core Australia accelerating in Q3
  • Positive overall despite a weak Q3 as the Brazilian market continues to suffer from the fallout of the COVID-19 pandemic and low consumer sentiment, as well as high unemployment, remains
  • Positive overall driven by core Germany
  • Positive growth in the off-premiseskewed brand, driven by the category momentum in the US

Nine month results to 30 September 2020

19

TABLE OF CONTENTS

Results Summary

Sales Results

  • By region
  • By brand

Consolidated P&L

Net Financial Debt

Marketing initiatives & Developments

Conclusion & Outlook

Annex

Nine month results to 30 September 2020

20

9M 2020 CONSOLIDATED P&L

9M 2020

Reported

Organic margin

Organic

Forex

Perimeter

9M 2020

9M 2019

accretion/

change

change

impact

effect

(dilution)

€ million

% of sales

€ million

% of sales

%

(bps) (3)

%

%

%

Net Sales

1282.5

100.0%

1303.8

100.0%

-1.6%

-2.8%

-1.5%

2.7%

COGS (1)

(520.9)

-40.6%

(495.2)

-38.0%

5.2%

4.1%

-4.1%

5.2%

Gross Profit

761.5

59.4%

808.6

62.0%

-5.8%

-270

-7.1%

0.1%

1.2%

A&P

(215.4)

-16.8%

(232.3)

-17.8%

-7.3%

80

-6.9%

-1.2%

0.9%

Contribution after A&P

546.1

42.6%

576.4

44.2%

-5.2%

-200

-7.2%

0.6%

1.4%

SG&A (2)

(297.6)

-23.2%

(288.3)

-22.1%

3.2%

-80

0.7%

-2.1%

4.6%

EBIT adjusted

248.5

19.4%

288.0

22.1%

-13.7%

-280

-15.1%

3.2%

-1.9%

Operating adjustments

(48.3)

-3.8%

(13.9)

-1.1%

-

Operating profit (EBIT)

200.3

15.6%

274.1

21.0%

-26.9%

Q3 2020

Organic margin

Organic

accretion/

change

(dilution)

(bps) (3)

%

12.9%

17.5%

-160

10.0%

-80

17.9%

-240

6.8%

200

1.8%

-30

11.2%

Net financial income (charges) Adjustments to financial income (charges)

Profit (loss) related to associates and joint ventures Put option, earn out income (charges) and hyperinflation effects

(27.4)

-2.1%

(25.4)

-1.9%

7.9%

2.0

0.2%

(0.0)

0.0%

-

(0.9)

-0.1%

0.1

0.0%

-

15.4

1.2%

(3.7)

-0.3%

-

Profit before tax and non-controlling interests

189.4

14.8%

245.1

18.8%

-22.7%

Non-controlling interests

(0.8)

-0.1%

0.0

0.0%

-

Group profit before tax

190.2

14.8%

245.1

18.8%

-22.4%

Group profit before tax adjusted

220.0

17.2%

259.0

19.9%

-15.1%

Depreciation & Amortisation

(58.6)

-4.6%

(52.2)

-4.0%

12.2%

-40

6.9%

-2.8%

8.1%

EBITDA adjusted

307.1

23.9%

340.3

26.1%

-9.7%

-240

-11.7%

2.3%

-0.3%

EBITDA

258.9

20.2%

326.4

25.0%

-20.7%

  1. COGS = cost of materials, production and logistics expenses
  2. SG&A = selling, general and administrative expenses
  3. Bps rounded to the nearest ten

207.0%

-50 10.6%

Nine month results to 30 September 2020

21

EBIT ADJUSTED MARGIN - KEY DRIVERS

Organic

+80 bps

+10 bps

22.1%

-270 bps

-80 bps

19.4%

-280 bps

9M 2019

Gross Margin

A&P

SG&A

FX & Perimeter

9M 2020

> Gross profit: on a reported basis down -5.8% in value, to 59.4% on sales (-260 bps dilution):

Organic change of -7.1%in value, leading to -270bps margin dilution in the nine months, due to unfavorable sales mix, driven by the outperformance of lower-marginEspolòn due to high agave price, shipment declines in higher-marginGrand Marnier, Campari and Aperol in the US as well as weak results in the aperitif portfolio in Italy strongly hit by the on- premise closure in the second quarter, in addition to the lower absorption of fixed production costs

Improving trends in Q3 (+10.0% in value, -160 bps margin dilution), driven by positive sales results, while margin continued to be affected by the negative sales mix, mainly driven by the combined effect of strong growth in lower-marginEspolòn and the shipment declines in higher-marginGrand Marnier and the aperitifs businesses in the US

Forex and perimeter combined effect of +1.3% in value, +10 bps margin accretion

> A&P: on a reported basis down -7.3% in value, to 16.8% on net sales (+100 bps accretion)

Organic decrease of -6.9%in value, driving +80 bps margin accretion, thanks to cost containment measures and postponement of initiatives in the on-premisechannels, particularly during the second quarter. In Q3, A&P increased by +17.9% organically, -80 bps margin dilution, driven by accelerated investments behind key high-marginaperitifs in their peak season, together with continuous investments into digital brand building and online brand activation as well as e-commerceinitiatives

Forex and perimeter combined effect of -0.3%in value, +20 bps margin accretion

> SG&A: on a reported basis up +3.2% in value, to 23.2% on net sales (-110 bps dilution)

Organic change of +0.7% in value, driving -80bps margin dilution, mainly due to the lower absorption of fixed costs (given the topline decline in the first nine months) with costs

containment measures mainly related to the variable and discretionary costs. During Q3, SG&A grew at +1.8% in value, significantly behind topline growth (+12.9%), leading to +200

bps organic accretion

Forex and perimeter combined effect of +2.5% in value, lower than topline change, leading to -30bps margin dilution, primarily driven by the consolidation of the newly acquired businesses

Nine month results to 30 September 2020

22

EBIT ADJUSTED - SUMMARY EFFECTS

(43.4)

€ million

9.3

(5.4)

% change

-15.1%

-1.9%

288.0

+3.2%

248.5

-13.7%

9M 2019

Organic

Forex

Perimeter

9M 2020

  • EBIT adjusted: on a reported basis down -13.7%in value, at 19.4% on net sales, down from 22.1% from last year
    • Organic decline of -15.1%in value with -280bps margin dilution in 9M largely due to the negative sales mix, lower absorption of fixed structure costs given the topline decline, coupled with a tough comparison base (+9.9% in value in 9M 2019)
      Improving EBIT adj. performance in Q3 (+11.2%, -30bps) thanks to positive topline results, while margin continued to be affected by the negative sales mix and acceleration in A&P investments (-80 bps), partially mitigated by SG&A efficiencies
    • Forex and perimeter combined effect of +1.4% in value, corresponding to +10 bps margin accretion. Forex impact was positive and accretive on EBIT adj. driven by the strong devaluation in currencies in low margin emerging markets while the US Dollar was broadly unchanged vs. 9M 2019. Perimeter effect was negative, mainly due to the disproportional effect from the first-time consolidation of the French distributor with sales impacted by one-off destocking and COVID-19, leading to a lower absorption of mainly fixed structure costs
  • EBITDA adjusted: on a reported basis down -9.7%in value, to 23.9% on net sales
    • Organic decline of -11.7%in value, generating -240bps margin dilution
    • Forex and perimeter combined effect of +2.0% in value, accretive on margin (+30 bps)

Nine month results to 30 September 2020

23

9M 2020 CONSOLIDATED P&L - GROUP PRE-TAX PROFIT

9M 2020

9M 2019

Reported change

€million

% of sales

€million

% of sales

%

EBIT adjusted

248.5

19.4%

288.0

22.1%

-13.7%

Operating adjustments

(48.3)

-3.8%

(13.9)

-1.1%

-

Operating profit = EBIT

200.3

15.6%

274.1

21.0%

-26.9%

Net financial income (charges)

(27.4)

-2.1%

(25.4)

-1.9%

7.9%

Adjustments to financial income (charges)

2.0

0.2%

(0.0)

0.0%

-

Profit (loss) related to associates and joint ventures

(0.9)

-0.1%

0.1

0.0%

-

Put option, earn out income (charges), hyperinflation effects and other

15.4

1.2%

(3.7)

-0.3%

Profit before tax

189.4

14.8%

245.1

18.8%

-22.7%

Profit before tax adjusted

219.2

17.1%

259.0

19.9%

-15.4%

Non-controlling interests

(0.8)

-0.1%

0.0

0.0%

-

Group profit before tax

190.2

14.8%

245.1

18.8%

-22.4%

Group profit before tax adjusted

220.0

17.2%

259.0

19.9%

-15.1%

  • Operating adjustments of €(48.3) million, of which:
    • €(27.3) million in H1 2020, mainly relating to the impairment loss of €(16.3) (1) million for Bulldog trademark, the donations of €(2.7) million made by the Group to support the sanitary emergency and the M&A transaction fees
    • €(20.9) million in Q3 2020, attributable to the restructuring program in Jamaica for €(11.2) million, the re-domiciliation and other initiatives
  • Net financial charges were €27.4 million in 9M 2020, €2.0 million higher vs. 9M 2019, mainly attributable to the following:
    • Negative variance of €2.3 million due to exchange rate differences (€0.4 million loss for 9M 2020 vs. €1.9 million gain for 9M 2019)
    • Decrease in net financial expenses of €0.3 million, after negative effect of €1.0 million deriving from the current valuations of financial assets measured at fair value, due to the volatility and instability of the financial markets caused by the Covid-19 pandemic. Although the average indebtedness in 9M 2020 is higher (€948.6 million vs. €888.0 million in 9M 2019), such effect has been compensated by the lower average cost of net debt, 3.8%(2) in 9M 2020 vs. 4.1% in 9M 2019, with both periods impacted by negative carry effect. The decreased cost of net debt is largely thanks to the reduced average gross debt coupon
  • Financial adjustments were positive at €2.0 million in 9M 2020, mainly related to the liability management concerning the term loan subscribed in July 2019, aimed at benefitting from better financial terms and conditions
  • Put option and earn out income (expenses) were positive at €15.4 million, mainly attributable to the non-cash effects of the remeasurement and discounting to present value of estimated liabilities for future commitments relating to earn out in the Bulldog Gin acquisition, amounting to €16.4 million(3)
  • Group profit before tax was €190.2 million, down -22.4%. Group profit before tax adjusted was €220.0 million, down -15.1%(4)

(1)

Or €(16.1) million in 9M 2020 due to exchange effects

24

(2)

Excluding FX effects, ancillary financial expenses and financial adjustments

Nine month results to 30 September 2020

(3)

Minor variance vs. H1 2020 (€16.8 million) due to exchange rate effect

(4)

Before operating and financial adjustments as well as non-recurringearn-out liabilities revisions, totalling €(29.6) million in 9M 2020 (vs. €(13.9) million adjustments in 9M 2019)

TABLE OF CONTENTS

Results Summary

Sales Results

  • By region
  • By brand

Consolidated P&L

Net Financial Debt

Marketing initiatives & Developments

Conclusion & Outlook

Annex

Nine month results to 30 September 2020

25

NET FINANCIAL POSITION

€ million

30 September 2020

31 December 2019

30 September 2020 vs.

31 December 2019

Short-term cash/(debt) (A)

(96.7)

71.5

(168.2)

- Cash and cash equivalents (1)

758.6

704.4

54.2

- Short-term debt

(855.4)

(633.0)

(222.4)

Medium to long-term cash/(debt) (B) (1)

(824.5)

(666.1)

(158.4)

Debt relating to operating activities (A+B)

(921.2)

(594.6)

(326.6)

Liabilities for put option and earn-out payments (2)

(147.0)

(182.8)

35.8

Net cash/(debt)

(1,068.2)

(777.4)

(290.8)

  • Net financial debt at €1,068.2 million as of 30 September 2020
    • Up €290.8 million from €777.4 million as of 31 December 2019, mainly driven by the acquisitions of RFD and Champagne Lallier as well as the investment in Tannico, the tax payment related to the disposal of Villa Les Cèdres as well as the dividend payment and the share buyback, for an overall amount of €461.6 million (3), fully offsetting the positive free cash generation
    • Up €6.7 million vs. 30 June 2020, with positive free cash flow generated in the third quarter broadly offsetting the accelerated share buyback program
      (€116.3 million in the quarter (4))
  • Net debt to EBITDA adjusted ratio at 2.4x as of 30 September 2020, unchanged vs. 30 June 2020 (vs. 1.6x as of 31 December 2019)
  • After the nine months period closing, on 6 October 2020, the Group completed the issuing of a new 7-yearEurobond of €550 million at a coupon of 1.25%, thanks to which the Group will further extend its overall debt maturity profile and improve its average nominal coupon for bonds and term loan from 2.15% (5) to 1.42% (6)
    1. Excluding the newly issued 7-year €550 million Eurobond with settlement date of 6 October 2020, and maturity on 6 October 2027
    2. Mainly related to acquisitions of Grand Marnier, Bulldog and Ancho Reyes and Montelobos
    3. Of which acquisitions of €126.6 million, share buyback of €212.3 million, tax payment related to the disposal of Villa Les Cèdres of €60.1 million and dividend payment of €62.9 million
  1. Including the redomiciliation transaction related shares acquired for an overall amount of €64.7million
  2. Including the €581 million Eurobond with a coupon of 2.75% (expiry in September 2020)
  3. Please refer to Annex 4' Eurobonds and Term Loan details' for further information

Nine month results to 30 September 2020

26

TABLE OF CONTENTS

Results Summary

Sales Results

  • By region
  • By brand

Consolidated P&L

Net Financial Debt

Marketing initiatives & Developments

Conclusion & Outlook

Annex

Nine month results to 30 September 2020

27

CAMPARI - CELEBRATING ART AND CINEMA

VENICE & NEW YORK FILM FESTIVAL

The bond between Campari and cinema took the stage again between

September 2nd and 12th at the 77th Venice International Film Festival and from

September 27th to October 13th at the 58th New York Film Festival, celebrating the values of passion and creativity, for the third consecutive year.

.

Nine month results to 30 September 2020

28

NEGRONI WEEK & RED PASSION DIGITAL CAMPAIGN

'RAISE A NEGRONI TO YOUR BAR'

Campari and Imbibe Magazine continue to partner together for the 8th year running to present Negroni Week 2020, in celebration of the iconic Campari-based cocktail. Each year, bartenders join forces to raise money for charity during Negroni Week, but this year the focus has shifted to support bartenders and the hospitality industry.

CAMPARI: RED PASSION

Campari, the iconic Italian red aperitif has launched an inspirational new digital campaign featuring a unique partnership with remarkable artists from around the world, bringing to life the brand's newly evolved ethos of Red Passion the urge inside us that is impossible to ignore. The campaign features hero video content and impactful visuals showing Red Passion come alive as the protagonists leave their comfort zone, transforming their passion into an outstanding creation.​ Watch the introductory clip here:

https://www.youtube.com/watch?v=CWUd1MGHc74

Nine month results to 30 September 2020

29

APEROL SPRITZ - EDUTAINMENT AND DIGITAL COMPETITONS

APEROL SPRITZ CHALLENGE -

#HOMEAPERITIFS - SPAIN

#SHAREASPRITZ & NATIONAL

ITALY

PROSECCO DAY TAKEOVER - UK

Aperol launched an edutainment content to teach the perfect serve of Aperol Spritz in a cool and scenic way: comprising a fresh, exciting video pivoting on the heavy rotation filming technique and a video tutorial to guide consumers through the making-of, the #AperolSpritzChallenge invited users to replicate the recipe at home while having fun trying to master the rotation twist.

Aperol UK launched the #ShareASpritz campaign, celebrating the easing of lockdown in the UK. The campaign encouraged Brits across

the country to nominate a friend or family member they have missed

during lockdown via social channels, with 160 winners receiving an Aperitivo Kit to share with their chosen nominee.

Spain launched as part of the campaign #MoreTogetherThanEver the Instagram contest #HomeAperitifs. Participants had the chance to win an aperitif organized by Aperol Spritz at consumers' home.. Another

activity that took place was "Les Nits del Primavera": a series of

music concerts organized by the Primavera Sound music festival, with Aperol as the main sponsor and selling over 10 thousand spritzes!

Nine month results to 30 September 2020

30

US FOCUS - WILD TURKEY & ESPOLÒN

WILD TURKEY LONGBRANCH &

RARE BREED RYE

Wild Turkey went live with the first ever dedicated digital

Campaign for its super premium expression,

Longbranch. The communication is entitled 'Wonder What

If', highlighting the rich storytelling that McConaughey has brought to the brand as Creative Director, In conjunction with the campaign launch, Longbranch unveiled an Instagram handle (@Longbranchbourbon), which will feature cocktail recipes, a Longbranch dictionary, and animated videos un-bottling the full creative concept.

Wild Turkey Rare Breed Rye was launched in July, 2020, crafted in one of the few distilleries to remain dedicated to the art of rye whiskey, Rare Breed Rye is a blend of 4-6and 8-year-old non-chillfiltered rye and is barrel-proof.

ESPOLÒN - MEXICAN INDEPENDENCE

DAY

Espolòn Tequila launched a national digital campaign around Mexican Independence Day week (on 16th September). This campaign is live from September until end of December across various channels and

partners, such as Spotify, WeTransfer.com, Hulu, Facebook, Instagram, Twitter, Pinterest and YouTube in unique and innovative ways. But above all, in true Espolòn fashion, the brand is focusing on non- traditional partnerships and creative assets to ensure Espolòn Tequila continues to stand apart from the competitive tequila crowd.

Nine month results to 30 September 2020

31

BRAND AND GLOBAL CAMPAIGN LAUNCHES

CRODINO

With the aim of reinforcing the presence of Campari

Group in the Non-Alcoholic category, the original

non-alcoholic drink and aperitif, Crodino, has been launched outside of Italy with a brand new mix. The Italian non alcoholic aperitivo since 1965 will offer its well known complex and rich taste in an adult and premium proposition for the young cosmopolitan demanding target in a completely revised positioning and stylish visual identity, a new packaging as a perfect mix of craft cues and stylish look & feel. The brand underwent launched in European markets (Netherlands, Belgium, Greece, UK, Switzerland, Romania) and will be progressively extended in other relevant markets.

CINZANO: DIGITAL DRIVE

`

Cinzano keeps on working on the brand digitalization and evolution, to consistently enlarge the brand presence in the digital space. The

brand delivered a new Digital Strategy to effectively communicate in an ever more important digital and e- commerce world, supported by new assets and the digitalization of almost 300 years of heritage in the brand new Cinzano Digital Archive.

AVERNA: OPEN SICILY

Averna has launched its first ever global campaign, 'Open Sicily', which celebrates the vibrant world of Sicily and the modern expressions of the island with new an updated and modernised brand identify, packaging and communication. The campaign represents an integrated digital 360 campaign across all digital and social platforms as well as traditional media that includes the brand's first foray onto TV and supports the amaro's strategy inviting consumers to discover the island's cultural richness and vibrancy across Italy, Germany, US, Austria, Switzerland. You can watch the TV Commercial here: https://www.youtube.com/watch?v=aN11tZ9iHR8

Nine month results to 30 September 2020

32

TABLE OF CONTENTS

Results Summary

Sales Results

  • By region
  • By brand

Consolidated P&L

Net Financial Debt

Marketing initiatives & Developments

Conclusion & Outlook

Annex

Nine month results to 30 September 2020

33

LOOKING FORWARD: PERSISTENT UNCERTAINTY IN THE SHORT TERM, CONFIDENCE FOR THE LONG-TERM BUSINESS MOMENTUM

  • With the progressive uplift of restrictive measures towards the end of the second quarter, the Group's business performance in the third quarter largely benefited from the staycation effect. This temporary effect impacted in particular the aperitifs business in their peak summer season in core on-premisemarkets, notably Italy, boosted also by favourable weather conditions, whilst strong brand momentum continued in the off-premise
  • However, the evolution towards the end of the quarter in the on-premise has been characterized by renewed signs of uncertainty due to the resurgence of the pandemic in many areas of the world
  • Looking at the remainder of 2020
    • Uncertainty remains with regards to the evolution of the pandemic. The restrictive measures which are being re-introduced by the governments of many affected markets are expected to potentially generate an adverse effect on consumption in the on-premise channel, the trend of which remains highly unpredictable, particularly during the key holiday season at year end
    • Moreover, shipments in the US are expected to continue to be affected by the ongoing destocking activities at wholesaler level while progressively catching up with the positive sell-out trends
  • Long-term
    • While the Group will continue to undertake all the necessary non-structuralactions to contain the effects of the pandemic on the business in the short-term, it remains focused on pursuing its long-termstrategy
    • The Group remains confident about the long-termconsumption trends and growth opportunities. It will continue to leverage the strength and resilience of its brands, business model and strategy, ensuring it is strongly positioned and ready to accelerate the growth as soon as consumers can resume their habits in the on-premise
    • As a committed and long-term brand builder, the Group will remain focused and highly engaged in the on-premiseopportunity with its distinctive brand portfolio, firmly convinced that the out-of-homesocial experience and conviviality will remain essential to consumers' lifestyles, as demonstrated by the consumers' consumption behaviours in the third quarter

34

TABLE OF CONTENTS

Results Summary

Sales Results

  • By region
  • By brand

Consolidated P&L

Net Financial Debt

Marketing initiatives & Developments

Conclusion & Outlook

Annex

Nine month results to 30 September 2020

35

Annex - 1 Net sales by region and key market

Annex - 2 Net sales by brand cluster

Annex - 3 Q3 2020 consolidated income statement

Annex - 4 Eurobonds and Term Loan details

Annex - 5 Exchange rates effects

36

Annex - 1

NET SALES BY REGION & KEY MARKET

Consolidated Net sales by region

9M 2020

9M 2019

Change

of which:

€ m

%

€ m

%

%

organic

perimeter

forex

Americas

552.2

43.1%

584.7

44.8%

-5.6%

-3.6%

0.6%

-2.5%

Southern Europe, Middle East & Africa

348.7

27.2%

362.6

27.8%

-3.8%

-14.2%

10.3%

0.1%

North, Central & Eastern Europe

291.8

22.8%

268.7

20.6%

8.6%

11.3%

-2.0%

-0.7%

Asia Pacific

89.7

7.0%

87.8

6.7%

2.1%

5.5%

0.0%

-3.4%

Total

1,282.5

100.0%

1,303.8

100.0%

-1.6%

-2.8%

2.7%

-1.5%

Q3 2020

organic

4.3%

23.8%

20.2%

2.9%

12.9%

Region breakdown by key market

Americas by market

9M 2020

9M 2019

Change

of which:

€ m

%

€ m

%

%

organic

perimeter

forex

USA

371.0

67.2%

367.7

62.9%

0.9%

0.1%

0.8%

0.0%

Jamaica

61.5

11.1%

71.3

12.2%

-13.7%

-7.6%

0.0%

-6.1%

Canada

45.3

8.2%

41.4

7.1%

9.3%

11.1%

0.1%

-2.0%

Brazil

23.4

4.2%

34.5

5.9%

-32.2%

-11.4%

0.0%

-20.9%

Mexico

16.0

2.9%

27.5

4.7%

-41.6%

-34.3%

0.3%

-7.6%

Other countries

35.1

6.4%

42.3

7.2%

-17.1%

-16.5%

0.2%

-0.8%

Americas

552.2

100.0%

584.7

100.0%

-5.6%

-3.6%

0.6%

-2.5%

Q3 2020

organic

8.9% -5.2% 13.6% -13.9%-6.8% 1.4%

4.3%

Nine month results to 30 September 2020

37

Annex - 1

NET SALES BY REGION & KEY MARKET

Southern Europe, Middle East & Africa by market

9M 2020

9M 2019

Change

of which:

€ m

%

€ m

%

%

organic

perimeter

forex

Italy

235.7

67.6%

266.3

73.4%

-11.5%

-11.6%

0.1%

0.0%

France

72.1

20.7%

29.1

8.0%

147.9%

49.5%

98.4%

0.0%

GTR

7.0

2.0%

21.4

5.9%

-67.4%

-64.8%

-2.6%

0.0%

Other countries

33.8

9.7%

45.8

12.6%

-26.1%

-46.5%

19.9%

0.5%

Southern Europe, Middle East & Africa

348.7

100.0%

362.6

100.0%

-3.8%

-14.2%

10.3%

0.1%

North, Central & Eastern Europe by market

9M 2020

9M 2019

Change

of which:

€ m

%

€ m

%

%

organic

perimeter

forex

Germany

133.7

45.8%

122.8

45.7%

8.9%

11.6%

-2.8%

0.0%

United Kingdom

36.5

12.5%

29.7

11.1%

22.6%

22.8%

0.0%

-0.2%

Russia

28.0

9.6%

27.1

10.1%

3.2%

19.8%

-7.0%

-9.6%

Other countries

93.7

32.1%

89.0

33.1%

5.3%

4.5%

0.0%

0.8%

North, Central & Eastern Europe

291.8

100.0%

268.7

100.0%

8.6%

11.3%

-2.0%

-0.7%

Asia Pacific by market

9M 2020

9M 2019

Change

of which:

€ m

%

€ m

%

%

organic

perimeter

forex

Australia

70.4

78.5%

60.2

68.6%

16.9%

21.0%

0.0%

-4.1%

Other countries

19.3

21.5%

27.6

31.4%

-30.0%

-28.3%

0.0%

-1.8%

Asia Pacific

89.7

100.0%

87.8

100.0%

2.1%

5.5%

0.0%

-3.4%

Q3 2020

organic

35.4%

151.8% -72.1%-56.3%

23.8%

Q3 2020

organic

25.5%

5.0%

20.6%

18.4%

20.2%

Q3 2020

organic

24.7% -42.3%

2.9%

Nine month results to 30 September 2020

38

Annex - 2

NET SALES BY BRAND CLUSTER

Consolidated Net sales by brand cluster

9M 2020

9M 2019

Change

of which:

€ m

%

€ m

%

%

organic

perimeter

forex

Global Priorities

745.4

58.1%

772.4

59.2%

-3.5%

-2.6%

0.0%

-0.9%

Regional Priorities

205.3

16.0%

193.7

14.9%

6.0%

-1.3%

8.5%

-1.2%

Local Priorities

149.0

11.6%

154.8

11.9%

-3.7%

-0.9%

0.5%

-3.3%

Rest of portfolio

182.7

14.2%

182.9

14.0%

-0.2%

-7.2%

10.0%

-2.9%

Total

1,282.5

100.0%

1,303.8

100.0%

-1.6%

-2.8%

2.7%

-1.5%

Q3 2020

organic

10.7%

18.7%

22.8%

8.1%

12.9%

Nine month results to 30 September 2020

39

Annex - 3

Q3 2020 CONSOLIDATED INCOME STATEMENT

Q3 2020

Q3 2019

Reported

Organic

Forex

Perimeter

change

change

impact

effect

€ million % of sales

€ million % of sales

%

%

%

%

Net Sales

513.8

100.0%

455.6

100.0%

12.8%

COGS (1)

(205.2)

-39.9%

(172.8)

-37.9%

18.7%

Gross Profit

308.6

60.1%

282.8

62.1%

9.1%

A&P

(93.6)

-18.2%

(80.8)

-17.7%

15.9%

Contribution after A&P

215.0

41.8%

202.0

44.3%

6.4%

SG&A (2)

(96.8)

-18.8%

(94.3)

-20.7%

2.7%

EBIT adjusted

118.2

23.0%

107.7

23.6%

9.7%

Operating adjustments

(20.9)

-4.1%

(5.3)

-1.2%

-

Operating profit (EBIT)

97.3

18.9%

102.5

22.5%

-5.0%

12.9%

3.9%

-4.0%

17.5%

7.9%

-6.7%

10.0%

1.4%

-2.3%

17.9%

1.3%

-3.3%

6.8%

1.5%

-1.9%

1.8%

5.3%

-4.5%

11.2%

-1.9%

0.4%

Net financial income (charges)

(8.2)

-1.6%

(10.3)

-2.3%

-19.7%

Financial adjustments

0.4

0.1%

0.0

0.0%

-

Profit (loss) related to associates and joint ventures

(0.7)

-0.1%

(0.0)

0.0%

-

Put option, earn out income (charges) and hyperinflation

(0.4)

-0.1%

(0.7)

-0.2%

-

effects

Profit before tax

88.4

17.2%

91.5

20.1%

-3.4%

Non-controlling interests

(0.3)

-0.1%

0.0

0.0%

-

Group profit before tax

88.7

17.3%

91.5

20.1%

-3.1%

Group profit before tax adjusted

109.3

21.3%

96.8

21.2%

13.0%

Depreciation & Amortisation

(19.2)

-3.7%

(17.4)

-3.8%

10.3%

7.0%

8.9%

-5.6%

EBITDA adjusted

137.4

26.7%

125.2

27.5%

9.8%

10.6%

-0.4%

-0.5%

EBITDA

116.5

22.7%

119.9

26.3%

-2.8%

  1. COGS = cost of materials, production and logistics expenses
  2. SG&A = selling, general and administrative expenses

Nine month results to 30 September 2020

40

Annex - 4

EUROBONDS AND TERM LOAN DETAILS

Eurobonds and Term Loan composition post Eurobond 2027 issue (6 October 2020)

Outstanding

Original

As % of

Issue date

Maturity

Type

Currency

Coupon

Amount

tenor

total

(€ million)

Apr 5, 2017

Apr-22

Unrated Eurobond

EUR

1.768%

50

5 years

4%

Apr 5, 2017

Apr-24

Unrated Eurobond

EUR

2.165%

150

7 years

13%

Apr 30, 2019

Apr-24

Unrated Eurobond

EUR

1.655%

150

5 years

13%

Jul 31, 2019

Jul-24

Term Loan

EUR

1.25% +3m euribor (1)

250

5 years

22%

Oct 6, 2020

Oct-27

Unrated Eurobond

EUR

1.250%

550

7 years

48%

Total gross debt

1,150

100%

Average coupon of gross debt

1.42%

(1) Floor rate of 0% for Euribor

Nine month results to 30 September 2020

41

Annex - 5

EXCHANGE RATES EFFECTS

Average exchange rate

Period end exchange rate

9M 2020

change vs 9M 2019

30 September 2020

change vs

30 September 2019

: 1 Euro

%

: 1 Euro

%

US Dollar

1.124

0.0%

1.171

-7.0%

Canadian Dollar

1.521

-1.8%

1.568

-8.0%

Jamaican Dollar

159.099

-6.6%

165.872

-11.7%

Mexican Peso

24.517

-11.8%

26.185

-18.1%

Brazilian Real

5.707

-23.5%

6.631

-31.7%

Argentine Peso (1)

89.123

-30.0%

89.123

-30.0%

Russian Ruble

79.899

-8.5%

91.776

-22.9%

Australian Dollar

1.663

-3.4%

1.644

-1.9%

Chinese Yuan

7.861

-1.9%

7.972

-2.4%

British Pound Sterling

0.885

-0.2%

0.912

-2.9%

Swiss Franc

1.068

4.7%

1.080

0.4%

  1. Following the adoption of IAS 29-'Financial reporting Hyperinflationary economies' in Argentina, the average exchange rate of Argentine Peso for 9M 2020 was adjusted to be equal to the rate as of 30 September 2020

Nine month results to 30 September 2020

42

DISCLAIMER

This document contains forward-looking statements that relate to future events and future operating, economic and financial results of Campari Group. By their nature, forward-looking statements involve risk and uncertainty because they depend on the occurrence of future events and circumstances. Actual results may differ materially from those reflected in forward-looking statements due to a variety of factors, most of which are outside of the Group's control.

Nine month results to 30 September 2020

43

C AM PA R I G R O U P.C O M

CONTACTS

i n ve s t o r. r e l a t i o n s @ c a m p a r i . c o m

C A M P A R I O F F I C I A L

@ G R U P P O C A M P A R I

C A M P A R I G R O U P

Nine month results to 30 September 2020

Disclaimer

Davide Campari - Milano NV published this content on 27 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2020 14:04:05 UTC


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Sales 2020 1 798 M 2 142 M 2 142 M
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Net Debt 2020 1 013 M 1 206 M 1 206 M
P/E ratio 2020 54,7x
Yield 2020 0,59%
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EV / Sales 2020 6,52x
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Nbr of Employees 4 000
Free-Float 46,6%
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Technical analysis trends DAVIDE CAMPARI-MILANO N.V.
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TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
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Mean consensus HOLD
Number of Analysts 25
Average target price 9,12 €
Last Close Price 9,52 €
Spread / Highest target 15,5%
Spread / Average Target -4,25%
Spread / Lowest Target -28,6%
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NameTitle
Robert Kunze-Concewitz Chief Executive Officer & Executive Director
Luca Garavoglia Chairman
Paolo Rinaldo Marchesini Chief Financial Officer & Executive Director
Christopher Woods Head-Information Technology
Eugenio Barcellona Non-Executive Director
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