Campari has released the financial data for the 1st quarter of 2024, the period ended with slightly declining revenues and mixed profitability. Management confirmed the financial and operational guidance for the entire year.
Campari closed last quarter with Net revenues for 663.5 million euros, a slight decrease of 0.7% compared to the 667.9 million achieved in the first three months of 2023. The management specified that the perimeter effect was positive at +0.6% (or 3.9 million) driven by third-party brands in distribution, while the exchange rate effect was negative at -1.4% (or -9.4 million) mainly driven by the depreciation of the US dollar.
Also in decline adjusted gross operating margin, which fell from 184.2 million to 181.1 million euros (-1.7%); consequently, the marginality it worsened from 27.6% to 27.3%.
Campari ended the 1st quarter of 2024 with a adjusted pre-tax profit of 147.3 million euros, an increase of 5.8% compared to the 139.2 million recorded in the first three months of the previous year. L’profit before taxes was equal to 145 million euros (+8.6%).
At the end of March 2024 thenet debt of Campari had fallen to 1.32 billion euros, compared to 1.85 billion at the beginning of the year, mainly due to the increase in liquidity from the issue of capital and convertible debt carried out in January 2024 to finance the acquisition of Courvoisier, in partly mitigated by the increase in gross debt due to convertible bonds (net of the equity component).
The multiple of net financial debt on adjusted EBITDA at March 31, 2024 it was 1.8 times, compared to 2.5 times at December 31, 2023.
Campari confirmed the financial indications for 2024.
In particular, management expects to continue to outperform the industry leveraging the strength of brands in growing categories in a normalizing industry environment while the macroeconomic situation remains volatile. In terms of marginality, management expects the moderation of inflation and agave trends to be gradually reflected in the income statement starting from the second half of the year, while the price effect will be mostly in the base in the rest of the year. Furthermore, the perimeter will begin to reflect the consolidation of Couvoisier since completion, with an expected contribution limited in the first year of transition.
Regarding the medium term, management expects constant organic expansion of the operating margin driven by the sales mixprice increases, easing material cost inflation and operational efficiencies, with continued reinvestment in brands and commercial capabilities to fuel organic growth.
