Davide Campari Milano N : 2023 First half results investor presentation

Results Presentation

First Half Results ended 30 June 2023

July 26, 2023

+14.2%

Organic Sales

(+16.0% reported)

+15.1%

Organic EBIT-adj.

(+15.7% reported)

+20bps

Organic EBIT-adj. margin

expansion

+6.2%

Group net profit-adj.

Very positive first half results with solid brand momentum continuing in the second quarter

• Strong organic sales growth of +14.2% in the first half (+10.1% in Q2):
• • solid brand momentum continued in the second quarter, in particular, aperitifs, tequila and premium bourbon, boosted also by pricing
  • the performance in Q2 reflected the expected reversal of the temporary phasing effects from Q1, very poor weather across core Southern & Central Europe, as well as temporary delistings from selected European retailers due to commercial negotiations in connection with price increases, which were subsequently passed through successfully
• Solid organic EBIT-adj.growth of +15.1%, with +20 bps margin accretion in the first half (+5.3% in value, -120bps margin dilution in Q2):
• • gross margin dilution in Q2 due to negative reversal of Q1 and the disproportional inflationary impact (particularly the high-season aperitifs), with COGS inflation overall fully offset by price increases in value terms
  • phasing in A&P linked to late start of the summer activations, impacted by bad weather
• Full year guidance of flat organic EBIT-adj. margin confirmed in the current volatile macro-environment

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Solid growth across all regions, with aperitifs, tequila and premium bourbon outperforming

H1 2023 Net Sales Organic Performance and Weight Breakdown

AMERICAS 10.6%

SEMEA 16.6%

NCEE 14.5%

APAC 26.2%

Others; 3%

Australia; 4%

Others, 8%

USA, 27%

UK; 3%

Germany, 8%

Others; 5%	Jamaica, 5%

France, 6%

Others; 11%

Italy, 19%

GLOBAL PRIORITIES

REGIONAL PRIORITIES

LOCAL PRIORITIES		8.0%

Rest Of Portfolio, 8%

Local Priorities, 9%

Regional Priorities,

24% (of which

Espolòn 7%)

Grand Marnier; 4%	SKYY; 5%
Jamaican Rums, 5%

15.0%

16.7%

Aperol, 26%

Campari, 11%

Wild Turkey, 8%

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H1 2023 net sales organic performance by key market

AMERICAS

43%

Organic Sales Growth:

+10.6%

Organic Sales Growth by Key Market

USA		11.7%

JAMAICA

OTHERS		6.1%

15.3%

• Very positive overall growth in the US with Q2 shipments up +3.3% (vs. Q2 depletion of +16.3%), reflecting the expected shipment phasing reversal from Q1 and destocking in Grand Marnier. The positive performance in the first half was mainly driven by strong growth of Aperol, Espolòn, Appleton Estate as well as Russell's Reserve, with the premiumisation of the bourbon portfolio continuing

• Continued positive growth in Jamaica (Q2: +12.8%) thanks to Magnum Tonic Wine, Appleton Estate and Wray&Nephew Overproof

• Overall positive for the rest of the region, with growth from Brazil and Mexico offsetting weakness in other markets

Organic Sales Growth by Key Market

SEMEA

30%

Organic Sales Growth:

16.6%

ITALY

FRANCE

OTHERS

13.4%

21.0%

24.0%

• Underlying trends remain solid in core Italy, with a very positive Q2 (+8.1%), driven by pricing including the most recent round, despite phasing reversal from Q1 and very poor weather. The growth in the first half was led by Aperol, Campari, Campari Soda and Crodino. The Italian specialties also grew as well as Espolòn off a small base
• Strong growth in France (Q2: +31.1%), driven by core Aperol and Campari as well as Riccadonna sparkling wine and Lallier
• Positive overall performance across the other markets including Spain and Greece thanks to continued momentum in a resilient consumer environment, led by Aperol and Campari. GTR was up +49.8% (Q2: +11.6%) with good momentum in Aperol, Campari, SKYY and Frangelico

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H1 2023 net sales organic performance by key market

NCEE		Organic Sales Growth by Key Market	• Underlying momentum in Germany remains solid with an acceleration in Q2
	GERMANY	16.4%	(+19.3%), largely driven by the aperitif portfolio, including Aperol, Aperol Spritz RTE,
	Campari, all growing double digits, and innovation (Sarti Rosa). Non-alcoholic
			Crodino continues to grow off a small base
19%	UK	20.9%	• Continued outperformance in the tough UK market mainly driven by continued positive
		trends in Aperol, Magnum Tonic Wine, Campari and Wray&Nephew Overproof, all up
			double digits
	OTHERS	10.6%	• Good underlying trends remain in other markets, despite the poor weather earlier in the
			quarter
Organic Sales Growth:
+14.5%

Organic Sales Growth by Key Market

ASIA PAC

AUSTRALIA

7% OTHERS

Organic Sales Growth:

+26.2%

• Positive performance in Australia after an acceleration in Q2 (+10.1%) largely led

		by Wild Turkey ready-to-drink thanks to a recovery in shipments as well as strong
7.5%		momentum in Wild Turkey bourbon and Aperol
		• South Korea grew double digits in H1 driven by high-end Wild Turkey offerings
		and The GlenGrant, while the Q2 performance was slightly negative due to very
	57.7%	tough comparison base (2022 Q2: +139.0%)
		• China grew strong double digits against an easy comparison base, thanks to
		SKYY, The GlenGrant, Wild Turkey bourbon and X-Rated.Strong growth in India
		driven by Campari and Aperol. Japan also registered strong growth thanks to brown
		spirits as well as Campari

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