Half Year 2026 Davide Campari Milano NV Earnings Call Transcript
Key Points
- Davide Campari-Milano NV (DVDCF) reported its fifth consecutive quarter of organic top-line growth, with H1 2026 organic growth of 2.7% and Q2 growth of 2.5% despite a difficult comparison base.
- The company is gaining market share in 95% of its key markets, driven by strong sellout performance on priority brands, particularly in the strategic on-premise channel.
- Gross margin improved by 130 basis points in H1, supported by positive mix from the aperitif portfolio, input cost benefits, and lower-than-expected tariff impacts.
- New product innovations, such as Aperol on Tap and Campari Spritz Ready to Serve, are showing strong early results, with Aperol on Tap capturing 1.5% market share of premium beer in Italy within three months.
- The company is successfully streamlining its portfolio through disposals of non-core brands like rum agricole and Cabo Wabo, reducing complexity and allowing focus on fewer, bigger bets.
- Germany remains a challenging market due to subdued consumer confidence and wallet pressure, impacting overall European growth.
- The House of Whiskey and Rum segment declined 6% in H1, driven by category challenges in the US, South Korea impacts, and temporary supply constraints on Russell's Reserve.
- Operating working capital as a percentage of sales remained high at 52% due to seasonality, including inventory build-up for peak season and increased maturing liquid stocks.
- The US market remains tricky, with overall category pressure and pricing aggression from competitors, though Davide Campari-Milano NV (DVDCF) is outperforming on priority brands.
- Logistics costs are increasing in H2 due to geopolitical volatility, which may offset potential tariff refund benefits and pressure margins in the second half of the year.
Good evening. This is the Chorus Call Conference Operator. Welcome and thank you for joining the Campari Group first half 2026 financial results conference call. (Operator Instructions) Today's call will be hosted by Simon Hunt, Chief Executive Officer, and Francesco Mele, Chief Financial Officer. At this time, I would like to turn the conference over to Simon Hunt. Please go ahead.
Great. Thanks very much. Good afternoon, everyone. A pleasure to be here with you again. I've got Francesco with me and of course, we have our IR team who will be available after the call for any follow-up. So let's get going with a summary of our first half results. Now I think it's important to start by stating that we are doing exactly what we said we would do.
And we are growing in the important start to the peak season. In fact, we are the only listed Spirits player now with five consecutive quarters of organic top-line growth. Now overall in H1, we recorded plus 2.7% organic top-line
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