Earnings Release • Mar 1, 2016
Earnings Release
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| Informazione Regolamentata n. 0530-3-2016 |
Data/Ora Ricezione 01 Marzo 2016 10:38:14 |
MTA | |
|---|---|---|---|
| Societa' | : | DAVIDE CAMPARI - MILANO | |
| Identificativo Informazione Regolamentata |
: | 70106 | |
| Nome utilizzatore | : | CAMPARIN01 - Garavini | |
| Tipologia | : | IRAG 01 | |
| Data/Ora Ricezione | : | 01 Marzo 2016 10:38:14 | |
| Data/Ora Inizio Diffusione presunta |
: | 01 Marzo 2016 10:53:15 | |
| Oggetto | : | results | Gruppo Campari announces 2015 full year |
| Testo del comunicato |
See attachment
Positive results across all key performance indicators in FY 2015 Accelerated organic growth and margin expansion thanks to continued sales mix improvement in Q4 Continued outperformance of high margin Global priorities1 and developed markets
Sales growth: +6.2% reported, organic growth +3.0%, Global Priorities organic growth sales +8.2% EBIT pre one-off's: reported growth +11.6%, organic growth +6.1% Strong free cash flow generation
Proposed dividend of € 0.09 per share, increasing by +12.5%
Solid organic sales growth +3.0% in full year 2015, showing an acceleration in the last quarter (+4.2%). Organic growth in Global Priorities +8.2% in 2015, gaining traction in the last quarter (+10.8%). Overall organic sales performance excluding weak result in Russia +4.9%.
Thanks to the continued improvement in sales mix by brand and market, EBIT pre one-off's grew organically by +6.1% on a full year basis (+9.4% in last quarter) leading to a margin expansion on net sales of +60 basis points on a full year organic basis (+110 basis point in the last quarter).
1 Campari, Aperol, SKYY, Wild Turkey and the Jamaican rums. 2 Adjusted net income for one-off's and tax effect from one-off's and other non-recurring positive tax effect in FY 2015 and FY 2014.
Positive impact of +4.1% in sales and +6.4% in EBIT pre one-off's driven by a revaluation of key currencies against the Euro, particularly the US dollar, partially worsened in the fourth quarter of 2015.
Perimeter effect of -1.0% in sales and -0.9% in EBIT pre one-off's, driven by the combined effect of acquisitions3 and both the termination of some distribution agreements and the sale of non-core businesses.
Bob Kunze-Concewitz, Chief Executive Officer: 'We delivered very positive results across all key performance indicators in 2015. In particular, results were sustained by very favourable organic growth, accelerating in the last part of the year, notwithstanding the increased weakness in some emerging markets (Russia and Nigeria), due to a difficult macroeconomic environment. At the same time, we achieved a very positive progression in operating margins with a further improvement in the fourth quarter. We achieved the results thanks to the consistent execution of our growth strategy which drove a continuous improvement of sales mix by brand and market, in line with the Group's objectives. In particular, high margin global priority brands outperformed the Group's overall organic growth and accelerated in the fourth quarter, leading to operating margin improvement at Group level. The latter benefitted also, on the one hand, from solid growth of the high-margin developed markets (particularly the US and Western Europe) and, on the other hand, the slowdown of some emerging markets with lower than Group average margin. Looking forward, with respect to the macroeconomic environment, we expect the volatility in some emerging markets and the recent devaluation of Group's key foreign currencies to continue during 2016. Simultaneously, we are confident to achieve a positive and profitable development of the business, driven by the growth of high-margin global priority brands (particularly the aperitifs, the American whiskies and the Jamaican rums), and by the positive performance of strategic markets for the Group. In particular, we expect to continue to positively exploit the growth potential of our brands and markets thanks to consistent investments in brand building, the positive contribution from innovations as well as a continued leverage of the Group's strengthened distribution platform and business infrastructure.'.
Milan, March 1, 2016-The Board of Directors of Davide Campari-Milano S.p.A. (Reuters CPRI.MI-Bloomberg CPR IM) approved the company's accounts and consolidated results for the fiscal year ending 31 December 2015.
| FY 2015 € million |
FY 2014 € million |
Reported change |
Organic change |
Forex impact |
Perimeter impact |
|
|---|---|---|---|---|---|---|
| Net sales | 1,656.8 | 1,560.0 | +6.2% | +3.0% | +4.1% | -1.0% |
| Contribution after A&P(1) | 630.8 | 570.9 | +10.5% | +5.1% | +5.0% | +0.4% |
| EBITDA pre one-offs | 380.1 | 337.5 | +12.6% | +6.8% | +6.5% | -0.7% |
| EBIT pre one-offs | 332.7 | 298.2 | +11.6% | +6.1% | +6.4% | -0.9% |
| One-off's | (22.9) | (43.2) | - | |||
| EBITDA | 357.1 | 294.4 | +21.3% | |||
| EBIT | 309.8 | 255.0 | +21.5% | |||
| Group net profit | 175.4 | 128.9 | +36.1% | |||
| Adjusted Group net profit(2) | 185.9 | 154.4 | +20.4% |
(1) EBIT before SG&A
(2) Adjusted net income for one-off's and tax effect from one-off's and other non-recurring positive tax effect in FY 2015 and FY 2014
3 Acquisitions of Forty Creek Distillery Ltd. (closed on 2 June 2014) and Gruppo Averna (closed on 3 June 2014).
As previously disclosed, as required by IFRS, starting from January 1, 2015, Gruppo Campari has reorganised its geographic reporting segments to reflect some recent organisational changes. The new regions are Americas, SEMEA (Southern Europe, Middle East and Africa)4 , North, Central and Eastern Europe and Asia Pacific.
Moreover, starting from January 1, 2015, Gruppo Campari has refined its brand clusters to better reflect the business focus on the key growth opportunities. The brand clusters are: Global Priorities, including Campari, Aperol, SKYY, Wild Turkey5 and the Jamaican rums; Regional Priorities, including bitters (Cynar, Averna and Braulio), liqueurs (Frangelico and Carolans), whiskies (GlenGrant and Forty Creek), tequila (Espolòn), sparkling wines and vermouth (Cinzano, Riccadonna and Mondoro); Local Priorities, including Campari Soda, Crodino, Wild Turkey ready-to-drink, Ouzo 12, Cabo Wabo, Sagatiba and Dreher; Rest of portfolio, including agency brands, and non-core businesses.
In 2015 Group sales totalled € 1,656.8 million showing a reported increase of +6.2%. Organic sales growth was +3.0%, driven by high margin Global priorities (+8.2%) and mitigated by the poor performance of low margin businesses, such as Russia and the non-core Jamaican sugar business that negatively impacted the Group organic performance by -1.9% and -0.4% respectively.
The exchange rate effect was +4.1%, driven by the strong appreciation of the US Dollar (+19.8%) and the Jamaican Dollar (+13.5%) as well as favourable trends in all other key Group currencies, with the exception of the Russian Rouble and the Brazilian Real.
The perimeter effect of -1.0% was the combined effect of acquisitions and both the termination of some distribution agreements and the sale of non-core businesses.
Gross profit increased by +10.3% to € 917.1 million (+4.7% organic change), at 55.4% of sales.
Advertising and promotion spending (A&P) was up by +9.8% to € 286.3 million, at 17.3% of sales.
CAAP (Contribution after A&P) was up by +10.5% to € 630.8 million (+5.1% organic change), at 38.1% of sales.
Structure costs, i.e. selling, general and administrative costs, increased by +9.3% to € 298.0 million, at 18.0% of sales.
EBITDA pre one-off's was up by +12.6% to € 380.1 million (+6.8% organic change), at 22.9% of sales.
EBIT pre one-off's increased by +11.6% to € 332.7 million (+6.1% organic change), at 20.1% of sales.
Negative one-off's of € 22.9 million, included € 16.2 million of non-cash write-down's of trademarks and disposed assets, as well as provisions relating to restructuring projects. It should be noted that one-off's in 2014 were negative by € 43.2 million6 .
EBITDA reached € 357.1 million, an increase of +21.3%, at 21.6% of sales.
EBIT reached € 309.8 million, an increase of +21.5%, at 18.7% of sales.
Pre-tax profit was € 249.4 million, up by +28.4%, mainly driven by EBIT growth.
Group net profit was € 175.4 million, up by +36.1%.
Adjusted Group net profit7 was € 185.9 million, up by +20.4% on a like-for-like basis.
4 Including Global Travel Retail.
5 Including Wild Turkey bourbon and American Honey.
6 Mainly relating to provisions for restructuring initiatives in connection with Gruppo Averna acquisition, still wine business and Jamaican non-core businesses, and goodwill write-down resulting from still wine business restructuring (non-cash). 7 Adjusted net income for one-off's and tax effect from one-off's and other non-recurring positive tax effect in FY 2015 and FY 2014.
As of December 31, 2015, net financial debt stood at € 825.8 million (€ 978.5 million as of December 31, 2014), after the dividend payment and the repurchasing of own shares. The reduction in the net financial debt was mainly driven by the healthy cash flow generation (free cash flow of € 200.0 million in FY 2015 vs. € 177.9 million in FY 2014), which accelerated in the fourth quarter, and was partially mitigated by the negative impact on net debt as of year-end due to the unfavourable exchange rate impact driven by the US Dollar. Net debt to EBITDA pro-forma ratio is 2.2 times as of 31 December 2015, improving vs. 2.9 times as of 31 December 2014.
Looking at sales by region, the Americas (42.3% of total Group sales in 2015) posted an overall growth of +14.3%, with an organic change of +7.0%, a favourable exchange rate impact of +11.0% and a perimeter effect of -3.8%, driven by the termination of some distribution agreements and the sale of non-core businesses in Jamaica, partially compensated by the Forty Creek acquisition8 . In the US (22.1% of total Group sales and 52.1% of the region), sales registered a positive organic performance of +3.7% in 2015. Key drivers were the positive performance of Wild Turkey (mainly core bourbon), the continued double digit growth of the aperitifs (Aperol and Campari) and the Jamaican rums, as well as the strong organic growth particularly for Espolòn (+26.0%) but also Frangelico and Carolans. SKYY showed a slightly positive performance. Sales in Jamaica (5.9% of total Group sales and 13.9% of the region) registered an organic change of +2.4%, thanks to the continued positive performance of premium brands such as the Jamaican rum and Campari, benefitting from an increased focus on the core business. Importantly, this was achieved despite the negative effect of non-core sugar business. Sales in Brazil (4.2% of total Group sales and 9.8% of the region) registered an overall organic growth of +1.4%, thanks to an acceleration of sales in the fourth quarter, ahead of the excise duty increase. The Admix whiskies and Campari declined, mainly affected by the macroeconomic and category weakness. The premium brands SKYY, Aperol, Espolòn and Wild Turkey registered a positive performance. Sales in Argentina (3.1% of total Group sales and 7.3% of the region) continued to register a double-digit organic growth (+34.7%), as a result of double digit organic growth of Campari (+73.0%) and SKYY Vodka (+42.1%). Cinzano vermouth and Cynar showed good results in value terms. Sales in Canada (2.9% of total Group sales and 7.0% of the region) registered an overall organic growth of +9.7%, normalizing after the distribution change9 occurred at the beginning of the year. The result was also driven by the acceleration in the fourth quarter sustained by Forty Creek, Carolans, Aperol, Appleton, as well as the good progression of Wild Turkey.
Sales in Southern Europe, Middle East and Africa10 (31.7% of total Group sales in 2015), posted an overall growth of +4.0%, with an organic change of +1.9%, an exchange rate impact of +0.3% and a perimeter effect of +1.8%, mainly driven by the Averna acquisition. The Italian market (25.1% of total Group sales and 79.2% of the region) showed a stable performance (-0.2%) in a declining market, benefitting from a positive performance in the fourth quarter. The aperitif portfolio showed very satisfactory results: Aperol registered a continued very solid performance (+4.8%), confirmed by the very positive sell-out trend, and Campari was up by +2.9%. With respect to local high-margin brands, Crodino was up by +0.2% and Campari Soda was flattish, despite the challenging comparison base (+15.0% and +5.6% respectively in full year 2014 in Italy). The overall performance in Italy was penalised by the continued weakness in whiskies and the sparkling wines due to the weakening consumer appeal of these categories. The carbonated drinks were positive thanks to positive weather conditions. The region's other countries (6.6% of Group net sales and 20.8% of the region) confirmed overall good organic results (+11.2%), driven by strong growth particularly in Spain (Campari, Aperol, Frangelico, Cinzano vermouth, GlenGrant and Bulldog), France (Aperol, GlenGrant, Cynar and Riccadonna), and South Africa (SKYY), partially offset by a temporary slowdown of Global Travel Retail and weakness in Nigeria (Campari).
8 Acquisition of Forty Creek Distillery Ltd. closed on 2 June 2014.
9 As of 1 January 2015, Gruppo Campari started direct distribution in Canada.
10 Including Global Travel Retail.
Sales in the North, Central and Eastern Europe (18.9% of total Group sales), decreased by -5.6% overall, driven by an organic change of -3.7%, an exchange rate effect of -1.7%, as a result of the devaluation of the Russian Rouble, and a perimeter effect of -0.2%, thanks to the Averna acquisition (1) broadly offsetting the negative effect from termination of agency brands. Sales in Germany (10.0% of total Group sales and 52.7% of the region) recorded an overall organic growth of +3.2%, driven by Cinzano vermouth, Frangelico, Ouzo 12 and the agency brands that offset the weakness of Cinzano sparkling wines. Aperol stabilized in 2015, whilst Campari was weak. Russia (1.9% of total Group sales and 9.8% of the region) showed a negative organic performance (-41.4%), driven by Cinzano (sparkling wines and vermouth), Mondoro and Riccadonna, as a result of the weak macroeconomic environment and the Group's own credit control procedures. Aperol and Wild Turkey showed encouraging results, but from a smaller base. The region's other markets (7.1% of Group net sales and 37.5% of the region) registered an overall positive organic growth (+11.6%), mainly driven by the UK (Aperol, Campari, Cinzano vermouth, SKYY and Wild Turkey), whilst the Central and Eastern European markets were mainly driven by the aperitifs and the whiskies.
Sales in Asia Pacific (7.0% of total Group sales in 2015) increased by +7.2% overall, with an organic change of +6.4%, an exchange rate effect of +0.9% and a neutral perimeter effect. Organic performance in Australia (4.9% of total Group sales and 69.5% of the region) was positive by +6.8%, confirming the outperformance of Group's portfolio in key categories in terms of sell-out trends, led by Wild Turkey (both core and American Honey), Wild Turkey ready-to-drink, Aperol, Campari and SKYY. The other markets (2.1% of Group net sales and 30.5% of the region) registered an overall positive organic growth of +5.4%, mainly driven by New Zealand (Coruba and Wild Turkey ready-to-drink) and Japan driven by Wild Turkey, Campari and SKYY.
Looking at sales by key brands in 2015, concerning the Global priorities, Campari registered a very positive organic growth of +6.1%. The single digit growth in Italy and the continued double digit growth in Argentina, US, Spain, Jamaica, Canada and UK more than offset the weakness in Brazil and in Germany and the decline in Nigeria, due to macroeconomic weakness.
Aperol showed an organic increase of +11.8%, mainly driven by the positive growth achieved in Italy, boosted by continued double digit growth in high potential markets (US, France, UK and Spain), as well as in seeding markets (Eastern Europe, Australia and Brazil). Importantly, Aperol stabilized in Germany.
SKYY sales achieved a positive organic growth of +2.9%, showing a slightly positive performance in the US. The brand achieved positive results in other markets, particularly in Brazil, Argentina, Australia, UK, Spain, Mexico and South Africa.
Wild Turkey registered a positive organic change of +8.8%, driven by the very positive performance achieved in its three core markets such as US (driven by Wild Turkey bourbon), Australia (driven by American Honey) and Japan.
The Jamaican rums, including Appleton Estate, J.Wray and Wray&Nephew Overproof, achieved a very positive organic growth of +15.8%, mainly driven by the core US, Jamaica, Canada and UK, as well as Mexico.
With regards to the Regional Priorities, Cynar showed a positive organic growth (+1.7%), mainly driven by the continued positive results achieved in US, Argentina, France and Brazil. GlenGrant registered a good organic performance of +4.8%, driven by Europe (France, Germany, Spain, Sweden) as well as Australia, China and Mexico, offsetting the decline in Italy. Carolans and Frangelico increased overall by +7.7% organically. The results were positive for both brands and in particular for Carolans in core US and Canada, and for Frangelico that registered a positive progression in Spain, Germany and Australia. Espolòn registered an organic increase of +35.0%, driven by the continued double digit growth in core US market, and boosted by a strong double digit progression in all seeding markets, mainly in Russia, Eastern European markets, Australia, Mexico, Italy and Brazil.
Cinzano registered an organic change of -13.6%, entirely driven by Russia. In particular, sparkling wines were impacted by Russia and by the softness in other core markets. With respect to vermouth, the double digit growth achieved in Argentina, UK and Spain, and the positive performance in Germany were more than offset by the decline in Russia. Other sparkling wines (Riccadonna and Mondoro) decreased organically by -34.6% entirely due to core Russia. Peru, France and Chile achieved strong double digit growth.
With regards to the Local Priorities, the Italian single-serve aperitifs, Crodino and Campari Soda, registered a slightly positive performance, despite the tough comparison base in key Italian market (+15.0% and +5.6% in 2014, respectively).
The Australian range Wild Turkey ready-to-drink increased by +4.7% organically. The Brazilian brands Dreher and Sagatiba registered an overall organic change of +4.0%. Ouzo 12 showed a positive performance (+10.4%), driven by the strong growth in core German market benefitting from innovation.
Dividend. The Board of Directors has voted to propose to the Shareholders' meeting a full year dividend per share of € 0.09 for 2015 (+12.5% increase compared to the previous year). The cash dividend will be payable on May 25, 2016 (the detachment date of the coupon n. 13 will be 23 May 2016 pursuant to the Borsa Italiana calendar, with a record date 24 May 2016). The Board of Directors has therefore agreed to convene the Annual Shareholders Meeting on 29 April 2016 to approve the company's accounts for the fiscal year ending 31 December 2015, and to appoint the Board of Directors and the Board of Statutory Auditors.
Own shares. The Board of Directors has approved a resolution to be presented to the Shareholders' meeting authorising the purchase and/or sale of own shares, mainly to be used to service the stock option plans. The authorisation concerns the purchase and/or sale of shares, which, taking into account the existing own shares, concerning the shares purchased, must not exceed the overall share capital limit according to article 2357 of the Italian Civil Code. The authorisation will remain valid until 30 June 2017. The unit price for the purchase and/or sale of own shares will not differ by more than 25% (whether upwards or downwards) from the weighted average price in the three stock market trading sessions prior to each transaction.
Stock options. The Board of Directors has approved a resolution to be presented to the Shareholders' meeting approving a stock option plan pursuant to Art. 114-bis of the Consolidated Law on Financial Intermediation, and in accordance with the stock option Regulation in effect.
Remuneration Report. The Board of Directors has approved a resolution to be presented to the Shareholders' meeting approving a Remuneration Report drawn up in accordance with article 123-ter, paragraph 6, of the Consolidated Law on Financial Intermediation.
The Executive responsible for preparing Davide Campari-Milano S.p.A.'s financial reports, Paolo Marchesini, certifiespursuant to article 154-bis, paragraph 2 of the Legislative Decree 58/1998-that the accounting disclosures in this statement correspond to the accounting documents, ledgers and entries.
This document contains forward-looking statements that relate to future events and future operating, economic and financial results of Campari Group. By their nature, forward-looking statements involve risk and uncertainty because they depend on the occurrence of future events and circumstances. Actual results may differ materially from those reflected in forward-looking statements due to a variety of factors, most of which are outside of the Group's control.
At 1:00 pm (CET) today, March 1, 2016, Campari's management will hold a conference call to present the Group's full year 2015 results. To participate, please dial one of the following numbers:
The presentation slides can be downloaded before the conference call from the main investor relations page on Gruppo Campari's website, at http://www.camparigroup.com/en/investors.
A recording of the conference call will be available from today, March 1 until Tuesday, March 8, 2016. To listen to it, please call the following numbers:
FOR FURTHER INFORMATION
| Investor Relations | ||
|---|---|---|
| Chiara Garavini | Tel. +39 02 6225 330 | Email: [email protected] |
| Francesco Davico Bonino | Tel. +39 02 6225 689 | Email: [email protected] |
| Jing He | Tel. +39 02 6225 832 | Email: [email protected] |
| Elena Tiozzo | Tel. +39 02 6225 290 | Email: [email protected] |
| Corporate Communications | ||
| Enrico Bocedi | Tel.: +39 02 6225 680 | Email: [email protected] |
http://www.camparigroup.com/en/investor http://www.camparigroup.com/en http://www.youtube.com/campariofficial https://twitter.com/GruppoCampari
Davide Campari-Milano S.p.A., together with its affiliates ('Gruppo Campari'), is a major player in the global beverage sector, trading in over 190 nations around the world with leading positions in Europe and the Americas. The Group was founded in 1860 and today is the sixth-largest player worldwide in the premium spirits industry. The Group's portfolio, with over 50 brands, spans spirits, the core business, wines and soft drinks. Internationally-renowned brands include Aperol, Appleton Estate, Campari, SKYY and Wild Turkey. Headquartered in Sesto San Giovanni, Italy, Campari owns 16 plants and 2 wineries worldwide and has its own distribution network in 19 countries. The Group employs around 4,000 people. The shares of the parent company, Davide Campari-Milano S.p.A. (Reuters CPRI.MI - Bloomberg CPR IM), are listed on the Italian Stock Exchange since 2001. For more information: http://www.camparigroup.com
Please enjoy our brands responsibly
- Appendix to follow -
| % on Group sales | % change, of which: | ||||
|---|---|---|---|---|---|
| total | organic | Exchange rate effect |
external growth |
||
| Global Priorities | 45.0% | 16.5% | 8.2% | 8.3% | - |
| Regional Priorities | 16.6% | -1.4% | -7.9% | 1.0% | 5.5% |
| Local Priorities | 13.5% | 0.9% | 2.4% | -1.5% | - |
| Rest of portfolio | 24.9% | -1.6% | 2.8% | 2.8% | -7.2% |
| Total | 100.0% | 6.2% | 3.0% | 4.1% | -1.0% |
| 1 January-31 December 2015 | 1 January-31 December 2014 | % | |||
|---|---|---|---|---|---|
| € million | % | € million | % | Change | |
| Americas | 701.6 | 42.3% | 613.9 | 39.4% | 14.3% |
| SEMEA (Southern Europe, Middle East and Africa) | 525.3 | 31.7% | 505.3 | 32.4% | 4.0% |
| North, Central and Eastern Europe | 313.9 | 18.9% | 332.5 | 21.3% | -5.6% |
| Asia-Pacific | 116.0 | 7.0% | 108.2 | 6.9% | 7.2% |
| Total | 1,656.8 | 100.0% | 1,560.0 | 100.0% | 6.2% |
| Breakdown of % change | Total % change |
Organic growth |
Exchange rate effect |
External growth |
|---|---|---|---|---|
| Americas | 14.3% | 7.0% | 11.0% | -3.8% |
| SEMEA (Southern Europe, Middle East and Africa) | 4.0% | 1.9% | 0.3% | 1.8% |
| North, Central and Eastern Europe | -5.6% | -3.7% | -1.7% | -0.2% |
| Asia-Pacific | 7.2% | 6.4% | 0.9% | - |
| Total | 6.2% | 3.0% | 4.1% | -1.0% |
| 1 January-31 December 2015 |
1 January-31 December 2014 | % | |||
|---|---|---|---|---|---|
| € million | % | € million | % | change | |
| Americas | 135.4 | 40.7% | 101.6 | 34.1% | 33.4% |
| SEMEA (Southern Europe, Middle East and Africa) | 99.5 | 29.9% | 97.1 | 32.6% | 2.5% |
| North, Central and Eastern Europe | 81.6 | 24.5% | 85.4 | 28.6% | -4.4% |
| Asia-Pacific | 16.1 | 4.8% | 14.2 | 4.8% | 13.8% |
| Total | 332.7 | 100.0% | 298.2 | 100.0% | 11.6% |
| Breakdown of % change | Total | Organic | Exchange rate | External |
|---|---|---|---|---|
| % change | growth | effect | growth | |
| Americas | 33.4% | 14.6% | 20.8% | -2.1% |
| SEMEA (Southern Europe, Middle East and Africa) | 2.5% | 4.7% | 0.3% | -2.5% |
| North, Central and Eastern Europe | -4.4% | -4.4% | -2.0% | 2.0% |
| Asia-Pacific | 13.8% | 18.3% | -4.4% | - |
| Total | 11.6% | 6.1% | 6.4% | -0.9% |
| 1 January-31 December 2015 | 1 January-31 December 2014 | ||||
|---|---|---|---|---|---|
| € million | % | € million | % | % Change |
|
| Net sales(1) | 1,656.8 | 100.0% | 1,560.0 | 100.0% | 6.2% |
| Total cost of goods sold(2) | (739.8) | -44.6% | (728.3) | -46.7% | 1.6% |
| Gross profit | 917.1 | 55.4% | 831.7 | 53.3% | 10.3% |
| Advertising and promotion | (286.3) | -17.3% | (260.8) | -16.7% | 9.8% |
| Contribution after A&P | 630.8 | 38.1% | 570.9 | 36.6% | 10.5% |
| SG&A(3) | (298.0) | -18.0% | (272.7) | -17.5% | 9.3% |
| EBIT before one-off's | 332.7 | 20.1% | 298.2 | 19.1% | 11.6% |
| One-off's | (22.9) | -1.4% | (43.2) | -2.8% | - |
| Operating profit = EBIT | 309.8 | 18.7% | 255.0 | 16.3% | 21.5% |
| Net financing costs | (60.0) | -3.6% | (61.1) | -3.9% | -1.8% |
| Income from associates | - | - | (0.2) | - | - |
| Put option | (0.4) | - | 0.5 | - | - |
| Profit before taxes and non-controlling | |||||
| interests | 249.4 | 15.1% | 194.2 | 12.4% | 28.4% |
| Taxes | (73.4) | -4.4% | (64.6) | -4.1% | 13.5% |
| Net Profit | 176.0 | 10.6% | 129.5 | 8.3% | 35.9% |
| Non-controlling interests | (0.6) | 0.0% | (0.6) | 0.0% | -4.9% |
| Group net profit | 175.4 | 10.6% | 128.9 | 8.3% | 36.1% |
| Depreciation and amortisation | (47.4) | -2.9% | (39.4) | -2.5% | 20.3% |
| EBITDA before one-off's | 380.1 | 22.9% | 337.5 | 21.6% | 12.6% |
| EBITDA | 357.1 | 21.6% | 294.4 | 18.9% | 21.3% |
(1) Net of discounts and excise duties.
(2) Includes cost of material, production and logistics costs.
(3) Includes selling, general and administrative costs.
| 31 December 2015 | 31 December 2014 | |
|---|---|---|
| € million | € million(1) | |
| ASSETS | ||
| Non-current assets | ||
| Net tangible fixed assets | 444.1 | 435.2 |
| Biological assets | 16.8 | 17.5 |
| Investment property | 0.4 | 0.8 |
| Goodwill and trademarks | 1,906.6 | 1,842.2 |
| Intangible assets with a finite life | 25.6 | 29.8 |
| Interests in affiliates and joint ventures | - | 0.7 |
| Deferred tax assets | 12.6 | 21.9 |
| Other non-current assets | 47.9 | 56.7 |
| Total non-current assets | 2,454.1 | 2,404.7 |
| Current assets | ||
| Inventories | 496.2 | 477.0 |
| Current biological assets | 2.1 | 4.1 |
| Trade receivables | 295.9 | 313.6 |
| Current financial receivables | 69.9 | 22.8 |
| Cash and cash equivalents | 844.3 | 230.9 |
| Income tax receivables | 16.3 | 13.0 |
| Other receivables | 21.6 | 26.7 |
| Total current assets | 1,746.3 | 1,088.2 |
| Assets held for sale | 23.6 | 21.9 |
| Total assets | 4,224.0 | 3,514.8 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Shareholders' equity | ||
| Share capital | 58.1 | 58.1 |
| Reserves | 1,687.4 | 1,516.8 |
| Parent company's portion of shareholders' equity | 1,745.5 | 1,574.8 |
| Non-controlling interests | 0.3 | 5.1 |
| Total shareholders' equity | 1,745.8 | 1,579.9 |
| Non-current liabilities | ||
| Bonds | 1,276.1 | 1,086.9 |
| Other non-current payables | 10.5 | 25.8 |
| Defined benefit plans | 8.3 | 9.4 |
| Provisions for risks and charges | 32.8 | 36.4 |
| Deferred tax liabilities | 291.5 | 264.8 |
| Total non-current liabilities | 1,619.3 | 1,423.2 |
| Current liabilities | ||
| Payables to banks | 29.3 | 36.7 |
| Other financial liabilities | 465.1 | 117.4 |
| Payables to suppliers | 217.2 | 223.2 |
| Income tax payables | 13.3 | 4.9 |
| Other current liabilities | 124.0 | 127.8 |
| Total current liabilities | 848.9 | 509.9 |
| Liabilities held for sale | 10.0 | 1.7 |
| Total liabilities | 2,478.2 | 1,934.8 |
| Total liabilities and shareholders' equity | 4,224.0 | 3,514.8 |
(1) 2014 values adjusted to reflect the final purchase price allocation of Forty Creek Distillery Ltd. (closing on June 2, 2014) and Gruppo Averna (closing on June 3, 2014)
| 31 December 2015 | 31 December 2014 | |
|---|---|---|
| € million | € million | |
| EBITDA | 357.1 | 294.4 |
| Write-downs of goodwill, trademarks and disposed assets | 16.2 | 23.7 |
| Other changes in non-cash items | (14.8) | 4.9 |
| Other changes in other receivables and payables | 10.4 | 20.3 |
| Income tax paid | (54.0) | (53.0) |
| Cash flow from operating activities | ||
| before change in operating working capital | 314.9 | 290.2 |
| Net change in operating working capital | (9.6) | (6.9) |
| Cash flow from operating activities | 305.3 | 283.3 |
| Net interest paid | (56.3) | (57.5) |
| Cash flow from investing activities | (49.1) | (47.9) |
| Free cash flow | 200.0 | 177.9 |
| Business combinations and disposals(1) | 22.9 | (236.1) |
| Purchase and disposal of trademarks and distribution rights | ||
| and payment of earn out | (0.3) | (6.2) |
| Dividends paid by the Parent Company | (45.7) | (46.1) |
| Other changes | (16.6) | (6.1) |
| Cash flow from other activities | (39.7) | (294.6) |
| Exchange rate differences and other changes | (7.6) | (9.2) |
| Change in net debt due to operating activities | 152.7 | (125.9) |
| Change in payable for the exercise of put options and payment of earn out | - | 0.2 |
| Change in net financial position | 152.7 | (125.7) |
| Net financial position at start of period | (978.5) | (825.8) |
| Net financial position at end of period | (825.8) | (978.5) |
(1) Includes acquisitions of Forty Creek Distillery Ltd. (€ 132.4 million after post-closing adjustments) and Fratelli Averna S.p.A. (€ 103.7 million).
Page 11 of 12
| 1 January | 1 January | |
|---|---|---|
| 31 December 2015 | 31 December 2014 | |
| € million | € million | |
| Net sales | 566.3 | 546.5 |
| Total cost of goods sold | (253.1) | (247.0) |
| Gross profit | 313.3 | 299.5 |
| Advertising and promotion | (65.8) | (59.6) |
| Contribution after A&P | 247.4 | 240.0 |
| SG&A | (87.2) | (97.6) |
| of which one-off's | (2.6) | (17.4) |
| Operating profit | 160.2 | 142.4 |
| Net financial income (expenses) | (55.0) | (54.1) |
| Dividends received from subsidiaries | 8.7 | 44.3 |
| Pre-tax profit | 113.8 | 132.6 |
| Taxes | (29.9) | (33.9) |
| Net profit | 83.9 | 98.7 |
| 31 December 2015 | 31 December 2014 | |
|---|---|---|
| € million | € million | |
| Total non-current assets | 2,019.8 | 2,012.8 |
| Total current assets | 909.8 | 376.9 |
| Total assets held for sale | 1.0 | 1.0 |
| Total assets | 2,930.6 | 2,390.7 |
| Total shareholders' equity | 1,008.8 | 989.6 |
| Total non-current liabilities | 1,400.0 | 1,150.3 |
| Total current liabilities | 521.8 | 250.7 |
| Total liabilities and shareholders' equity | 2,930.6 | 2,390.7 |
| 31 December 2015 | 31 December 2014 | |
|---|---|---|
| € million | € million | |
| Cash flow from operating activities | 140.8 | 144.4 |
| Cash flow from investing activities | (48.3) | (62.9) |
| Cash flow from (used in) financing activities | 416.6 | (153.0) |
| Increase (decrease) in cash and banks | 511.9 | (71.4) |
| Cash and cash equivalent at start of financial year | 49.2 | 120.6 |
| Cash and cash equivalent at end of financial year | 561.1 | 49.2 |
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