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• Organic Net Sales Growth: Negative 4.2%, equating to a decrease of 28 million.

• Total Sales Growth: 0.3% in Q1.

• EBITDA Adjusted: Declined by 17.2% organically with a margin dilution of 310 basis points.

• Gross Margin: Remained flat, impacted by negative mix due to lower US profit share.

• AMP (Advertising and Promotion): Increased by 2.4% with a 90 basis point margin deduction.

• SGNA (Selling, General and Administrative Expenses): Grew by 5.1% in value, causing a 200 basis point dilution.

• Pre-tax Profit Adjusted: 113.7 million, down by 22.4%.

• Net Financial Debt: 2.16 billion, relatively stable, up 83 million from December last year.

• Leverage Ratio: 3.4 times, slightly higher than December's 3.2 times.

• Americas Organic Change: Negative 6%.

• APAC Growth: 11%, with Australia growing by 16%.

• House of Agave (Espolon): Impacted by logistics delays, would have been around negative 1% excluding delays.

• Financial Expenses: 21.8 million, including exchange gains of 3.4 million.

• Warning! GuruFocus has detected 4 Warning Sign with DVDCF.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive 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.

Negative Points

• 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.