Q1 2025 Davide Campari Milano NV Earnings Call Transcript
Key Points
- Davide Campari-Milano NV (DVDCF) recorded significant double-digit growth in more than 10 less developed markets globally, showcasing the potential for geographic expansion.
- The company is on track with its cost containment program, expected to release benefits starting in H2 2025, which should improve operating leverage and margin profile.
- Aperol and Espolon showed strong performance in the US, with growth rates of 12% and 14% respectively, indicating robust brand health.
- The company reported a solid performance in APAC with 11% growth, driven by strong execution in Australia and positive trends in China and South Korea.
- Davide Campari-Milano NV (DVDCF) is maintaining a disciplined approach to pricing, which is crucial in a volatile market environment, ensuring long-term brand equity protection.
- The company experienced a negative 4.2% organic net sales growth in Q1 2025, primarily due to Easter timing impacts and logistic delays.
- Macroeconomic volatility and logistic challenges affected ordering patterns and shipments, particularly in the US, impacting overall performance.
- The EBITDA adjusted in value declined by 17.2% organically, with a margin dilution of 310 basis points, indicating pressure on profitability.
- The company faces potential negative impacts from tariffs, estimated at around €25 million on EBIT for 2025, which could affect financial performance.
- The weakening of the US dollar poses additional potential negative impacts for the remainder of the year, adding to the financial uncertainties.
Good evening. This is the Chorus call conference operator. Welcome and thank you for joining the Campari Group first quarter 2025 results conference call. (Operator Instructions)
At this time, I would like to turn the conference over to Mr. Simon Hunt, CEO, and Mr. Paolo Marchesini, CFOOO. Campari, please go ahead.
Great, thank you very much. Good evening, good afternoon to everyone. Thank you for joining us, on this call. My second one, where we're going to review our Q1 results and give our perspectives on the remainder of the year. As always, Paolo is here with me and our IR team Kara and Gulse are happy to connect after the call to further deep dive with all of you in the upcoming days as necessary.
So now a short summary of how we see the environment and our positioning. It's been quite an exciting 10 weeks since our last call. And to summarize our performance, I can say that we continue to record our performance in sellout across most geographies with a strong bounce
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