Half Year 2025 Davide Campari Milano NV Earnings Call Transcript
Key Points
- Davide Campari-Milano NV (DVDCF) reported continued outperformance in sellout across most geographies, with improvements in Q2 supported by a positive start to the peak season.
- The company achieved growth in Q2 as guided, with a total organic growth of 3.5%, driven by a positive start to the peak season and recovery from previous logistical delays.
- Profitability is on track, driven by initial savings in SGNA and gross margin accretion, despite A&P dilution due to peak season investments.
- Cash generation remains strong with positive free cash flow, despite ongoing extraordinary CapEx programs.
- Geographic expansion of brands is progressing well, with more than 13 markets recording double-digit growth in Q2.
- The company faced a negative impact from a German retailer delisting due to pricing disagreements, affecting sales by EUR 5 million in the first half and expected to impact another EUR 6 million in the second half.
- There are ongoing challenges in the US market, particularly with the Grand Marnier brand, which is experiencing destocking and challenging trends.
- The potential impact of tariffs remains uncertain, with a possible negative impact ranging from EUR 4 million to EUR 45 million depending on various scenarios.
- The weakening of the US dollar may pose additional negative impacts for the second half of the year.
- The House of Cognac and Champagne, particularly Courvoisier, is facing challenges in key markets like the US and China, with the category experiencing significant pricing and promotional competition.
My two friends and they both.
Girls Ain't nobody And they both Whole lot of girls.
Good evening. This is the conference operator. Welcome and thank you for joining the Campari Group first of 2025 results conference call.
As a reminder, all participants are in listen-only mode.
After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing N0 on their telephone.
At this time, I would like to turn the conference over to Simon Hunt, CEO, and Paulo Marchezzini, CFO of Campari. Please go ahead.
Thank you very much. Good evening. Good afternoon to everyone.
Thank you for joining us to go through our 2025 half year results and the perspectives for the remainder of the year.
As always, Paolo is here with me along with our II team. Kiara and Gouls are happy to connect after the call to further deep dive with all of you in the upcoming
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