Gruppo Campari 2003 Full Year Results.Business Editors MILAN Milan, prince and king of Serbia Milan (Milan Obrenović) (mĭl`än ōbrĕ`nəvĭch), 1854–1901, prince (1868–82) and king (1882–89) of Serbia; grandnephew of Miloš Obrenović. , Italy--(BUSINESS WIRE)--March 22, 2004 The Board of Directors of Davide Campari-Milano S.p.A. has approved the consolidated results for 2003, which showed strong growth in sales and at all levels of operating profitability. The results were more than satisfactory, particularly in light of the substantial impact of exchange rate movements. It should be stressed that, in this regard, if these results were considered before exchange rates impact, they would show double-digit growth versus the previous year.
FY 2003 Change at Change at
Results actual constant
exchange exchange
rates rates
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-- Net sales EUR million 714.1 +8.1% +14.5%
-- EBITDA EUR million 169.2 +5.8% +12.4%
-- EBITA EUR million 150.7 +5.8% +12.8%
-- EBIT = Operating EUR million
income 122.2 +6.6% +15.3%
-- Profit before
taxes and
minority interests EUR million 138.1 +11.9% +19.2%
-- Group's net profit EUR million 79.8 -7.9% -3.9%
-- EPS EUR 2.75 -7.9% -3.9%
---------------------------------------------------------------------
EBITA = EBIT (operating profit) before amortisation of goodwill
and trademarks.
Deputy Chief Executive Officer Enzo Visone said "2003 was another year of more than satisfactory results for the Campari Group The Campari Group is a major Italian alcohol beverage company. It was founded in Milan in 1860 by Gaspare Campari. The group is present in over 190 nations around the world with a leading position in the Italian and Brazilian markets and a strong presence in the US, Germany and : we fully met our targets for both organic growth (despite the negative exchange rate movements) and external expansion, which continued in 2003 with the acquisitions of Barbero 1891 and Riccadonna. These results lay the foundations for further growth in 2004, despite the unfavourable economic outlook, especially with respect to Europe." DIVIDEND At the ordinary and extraordinary Shareholders' Meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. convened for 29 April 2004, the Board of Directors will propose a dividend of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 0.88 per share (unchanged from last year), for a total dividend of EUR 24.7 million, with the detachment detachment /de·tach·ment/ (de-tach´ment) the condition of being separated or disconnected. detachment of retina , retinal detachment of coupon no. 4 on 10 May 2004 and payable as of 13 May 2004. 2003 CONSOLIDATED RESULTS Group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. in 2003 were EUR 714.1 million, up 8.1% (+14.5% at constant exchange rates). Organic growth was 9.6%, while exchange rate movements had a negative effect of 6.4%, mainly because of the fall in value of the US Dollar and the Brazilian Real The real (IPA: [xe'aw] or [ʁe'aɫ], symbol: R$, ISO 4217 code: BRL, plural: reais) is the currency of Brazil. It is also the name of the earliest Brazilian currency (see from the Colonial period to 1942. . External growth, at 4.9%, was largely driven by the new distribution agreement for tequila tequila Distilled liquor, usually clear in colour and unaged, made from the fermented juice of the Mexican agave plant. (See agave family.) It contains 40–50% alcohol. 1800 on the US market (+4.3%). Barbero 1891 made a minimal contribution (+0.6%), as it was consolidated only for December. Trading profit Trading profit The profit earned on short-term trades of securities held for less than one year, subject to tax at normal income tax rates. trading profit increased by 6.8% to EUR 193.1 million, or 27% of sales. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become increased by 5.8% (+12.4% at constant exchange rates) to EUR 169.2 million, or 23.7% of sales. EBITA EBITA Earnings Before Interest Taxes Amortization increased by 5.8% (+12.8% at constant exchange rates) to EUR 150.7 million, or 21.1% of sales. EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). increased by 6.6% (+15.3% at constant exchange rates) to EUR 122.2 million, or 17.1% of sales. Profit before taxes and minority interests was EUR 138.1 million, up 11.9% (+19.2% at constant exchange rates). The result was boosted by net non-operating income of EUR 23.1 million, which includes the capital gain generated by the sale of head office building in Milan, Via Filippo Turati Filippo Turati (November 26, 1857 – March 29, 1932) was an Italian sociologist, poet and Socialist politician. Early life Born in Canzo, province of Como, he graduated in law at the University of Bologna in 1877, and participated in the Scapigliatura , in July 2003. Group's profit before taxes, i.e. profit before taxes and after minority interests, was EUR 120.2 million, up 11.8%. Group's net profit fell 7.9% to EUR 79.8 million, because of the higher tax burden than in the previous year, when the company benefited from dual income tax relief and the "Tremonti bis Second version. It means twice in Old Latin, or encore in French. Ter means three. For example, V.27bis and V.27ter are the second and third versions of the V.27 standard. " tax incentive. Consolidated shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was EUR 548.2 million at 31 December 2003. At 31 December 2003, net debt was EUR 297.1 million (EUR 198.8 million at 31 December 2002). The debt to equity ratio The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of equity and debt used to finance a company's assets. It is equal to total debt divided by shareholders' equity. at 31 December 2003 was 54.2%. It should be stressed that on 3 December 2003 the Group completed the acquisition of Barbero 1891 for a countervalue Countervalue refers to the targeting of an opponent's cities and civilian populations. In contrast, counterforce refers to the targeting of an opponent's military personnel, forces and facilities. of EUR 147.1 million, paid in cash and financed with part of the proceeds from the senior notes issued in 2003. 2003 SALES The spirits segment, which accounted for 65.5% of total sales, grew by 9.6% (+18.7% at constant exchange rates). Organic growth was 11.5%, thanks to a positive performance from all of the Group's main brands. Sales of Campari rose by 3.4% at constant exchange rates (-1.1% at actual exchange rates). Geographically, sales performance was positive in Italy (+10.8%), Brazil and also Germany, where the upturn in sales seen in the first half of the year continued and led to much higher than expected overall growth for 2003. SKYY Vodka SKYY vodka is produced by SKYY Spirits LLC in San Francisco, California. SKYY Vodka is 40% ABV or 80 proof. SKYY 90 Vodka is a 90 proof high-priced brand aimed at martini drinkers. When SKYY Spirits LLC first launched in 1992 SKYY vodka was its first product. turned in another excellent performance: it was named as a "Hot Brand" in the US by Impact, one of the most important trade publications, for the ninth year in a row. Sales of SKYY (including the new flavoured adj. 1. same as flavored; - of foods. vodka vodka (vŏd`kə), traditional spirituous drink of Russia, the Baltic states, and Poland; it is now consumed internationally. The best vodka is distilled from rye and barley malt, but the cheaper corn and potatoes are commonly employed. brands) continued to rise significantly, by 24.5% at constant exchange rates (+4.5% at actual exchange rates). The new SKYY flavoured vodkas This is a list of brands of vodka. Australia
Berry (bĕrē`), former province, central France. Bourges, the capital, and Châteauroux are the chief towns. , SKYY Spiced and SKYY Vanilla vanilla, a plant of the genus Vanilla of the family Orchidaceae (orchid family). Vines of hot, damp climates, most are indigenous to Central and South America, especially Mexico, but are now cultivated in other tropical regions. , which were added to the existing SKYY Citrus) showed strong sales growth and in 2003 accounted for 16% of total sales of the SKYY brand. The spirits segment also benefited from positive performances from CampariSoda (+4.3%), Ouzo ou·zo n. pl. ou·zos A colorless, unsweetened Greek liqueur flavored with anise. [Modern Greek. 12 (+7.4%) and Jagermeister (+5.3%). Sales of Cynar dipped slightly overall (-0.7%), but recovered strongly on the Italian market. Campari Mixx benefited especially from significant growth on the Italian market. External sales growth stood at 7.2%, largely thanks to tequila 1800 (+6.6%), while Barbero 1891, consolidated only in December, contributed 0.6%. Sales of wines, which accounted for 13.9% of total sales, grew by 2.5% at constant exchange rates (+5.5% at actual exchange rates). Organic growth was up 4.3%, following a good performance from Cinzano sparkling wines (+5.3% at constant exchange rates) and a more modest contribution from Cinzano vermouth vermouth (vərm  th`), blend of white wines fortified with additional alcohol and flavored with aromatic herbs, spices, and roots. It contains up to 19% alcohol. (+0.8% at constant exchange rates).
Sales of Sella sella /sel·la/ (sel´ah) pl. sel´lae [L.]1. a saddle-shaped depression.sel´lar 2. s. turcica. sella tur´cica & Mosca dipped by 0.6%: this was entirely due to product shortages (especially of white wines) after the poor harvest of 2002. Riccadonna sales rose by 6.2% at constant exchange rates. Soft drink sales, which contributed 19.6% to the total and which are realised almost exclusively on the Italian market, grew by 10.2%, also thanks to last year's particularly hot summer. Sales of Lemonsoda, Oransoda and Pelmosoda jumped by 16.1%, while Lipton Ice Tea shot up by 24.4%. Crodino's sales, which are less affected by the weather, grew by 2.2%. By region, sales on the Italian market accounted for 47.6% of the Group total in 2003 and increased by 9.3%. Sustained organic growth (+8.2%) was helped by a positive performance from all three business areas and to the contribution -- albeit small -- from Barbero 1891 (+1.1%), consolidated only in December. Sales in Europe stood at 19.4% of the total and jumped by 9.1% owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de the start-up Start-up The earliest stage of a new business venture. of a new distribution agreement for the Russian Russian associated in some way with Russia. Russian blue a breed of cats with short, dense, silver-tipped blue-colored coat and vivid green eyes. market (which mainly benefited Cinzano) and to the launch of Campari Mixx in Germany and Austria. This was also helped by a sharp recovery on the German market, and by the introduction of SKYY Vodka in almost all the European markets. As for the Americas, which account for 30.6% of total sales, the US market expanded by 18.2%, owing to organic growth (+17%), which was boosted by SKYY Vodka, and to the new tequila 1800 distribution contract (+20.4%). Brazil also did well, with sales growth of 7.8% at constant exchange rates; however, this was more than offset by the devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the real (-21.4%). 2004 OUTLOOK As to 2004, the Group maintains a cautious view of the future, in the light of an unfavourable macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. scenario, with particular reference to Europe. As regards the US, the market continues to be affected by an increasing competition in the premium vodka segment. Regarding Brazil, the business performance is highly correlated cor·re·late v. cor·re·lat·ed, cor·re·lat·ing, cor·re·lates v.tr. 1. To put or bring into causal, complementary, parallel, or reciprocal relation. 2. with the performance of the local economy. Meanwhile, the Italian business is expected to benefit from the contribution of Aperol and the other brands of Barbero 1891 acquired in December 2003. OTHER RESOLUTIONS Corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. , own shares and by-laws amendments. The Board of Directors has: (a) approved the annual report on corporate governance; (b) approved the report to the ordinary Shareholders' Meeting concerning the purchase and/or sale of own shares; (c) resolved to submit a proposal to the extraordinary Shareholders' Meeting for the amendment of the company's by-laws also in order to comply with the recently amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. Company Act (Legislative Decree decree, in law, decision of a suit in a court of equity. It is the counterpart in equity of the judgment in a court of law, although in those jurisdictions where law and equity have merged, judgment is sometimes used to include both. 6/2003). Merger of Campari-Crodo S.p.A. into Davide Campari-Milano S.p.A. The Board of Directors of Davide Campari-Milano S.p.A. has proposed the merger of Campari-Crodo S.p.A. into Davide Campari-Milano S.p.A. The purpose of this operation is to rationalise Verb 1. rationalise - structure and run according to rational or scientific principles in order to achieve desired results; "We rationalized the factory's production and raised profits" rationalize the Group's organisational structure by integrating the production activities that were previously carried out by Campari-Crodo S.p.A. with those of Davide Campari-Milano S.p.A. Since Davide Campari-Milano S.p.A. owns 100% of Campari-Crodo S.p.A., it will not be necessary for the parent company to set a share exchange ratio or carry out a capital increase, pursuant to article 2501 of the Italian Civil Code. The effective date of the proposed merger for accounting and taxation purposes will be 1 January 2004, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with point 6) of article 2501-ter of the Italian Civil Code. The merger act will establish the effective date vis-a-vis third parties, pursuant to article 2504-bis, paragraph 2, of the Italian Civil Code; such date may be a later date than that on which the last of the registrations referred to in article 2504 of the Italian Civil Code will be made. No specific benefits are to be given to the directors of the companies involved in the proposed merger. CONFERENCE CALL At 5.00 p.m. (CET CET abbr. Central European Time CET Central European Time CET n abbr (= Central European Time) → hora de Europa central CET abbr ) today, Monday 22 March 2004, there will be a conference call, during which Campari's management will present the 2003 results to analysts, investors and journalists. To take part in the conference call, simply dial one of the following numbers: -- from Italy: 800 990 927 (freephone number) -- from abroad: +39 02 3700 8210 The slides for the presentation can be downloaded before the conference call begins from the Investor Relations Investor relations The process by which the corporation communicates with its investors. page on the Campari website at www.campari.com/ir/ PRESENTATION OF THE RESULTS TO THE FINANCIAL COMMUNITY AND THE PRESS At 10.00 a.m. (CET) tomorrow, Tuesday 23 March 2004, Campari's management will present the 2003 results at a meeting with the financial community at Banca Intesa Banca Intesa S.p.A. is a major Italian bank based in Milan. It was born in 1998 from the merger of Cassa di Risparmio delle Provincie Lombarde (aka Cariplo) and Banco Ambroveneto (former Banco Ambrosiano). , Piazza piazza Open square or marketplace, surrounded by buildings, in an Italian town or city. It was equivalent to the plaza of Spanish-speaking countries. The term became more widely used in the 16th–18th century, denoting any large open space with buildings around it. Belgioioso 1, Milan.
CAMPARI GROUP - 2003 FULL YEAR RESULTS
Table 1) Campari Group - net revenues by segment
1 January - 1 January -
31 December 2003 31 December 2002 Change
EUR million % EUR million % %
----------------------------------------------------------------------
Spirits 467.6 65.5% 426.6 64.4% 9.6%
Wines 99.0 13.9% 96.6 14.6% 2.5%
Soft Drinks 140.3 19.6% 127.2 19.3% 10.2%
Other revenues 7.2 1.0% 10.1 1.5% -28.7%
Total 714.1 100.0% 660.6 100.0% 8.1%
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Table 2) Campari Group - net revenues by geographic area
1 January - 1 January -
31 December 2003 31 December 2002 Change
EUR million % EUR million % %
----------------------------------------------------------------------
Italy 339.8 47.6% 311.0 47.1% 9.3%
Europe 138.9 19.4% 127.3 19.3% 9.1%
Americas 218.4 30.6% 200.2 30.3% 9.1%
Rest of the world 17.0 2.4% 22.1 3.3% -23.2%
Total 714.1 100.0% 660.6 100.0% 8.1%
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Table 3) Campari Group - consolidated income statement
1 January - 1 January -
31 December 2003 31 December 2002 Change
EUR million % EUR million % %
----------------------------------------------------------------------
Net revenues (1) 714.1 100.0% 660.6 100.0% 8.1%
----------------------------------------------------------------------
Cost of materials (256.3) -35.9% (230.4) -34.9% 11.3%
Production costs (44.9) -6.3% (45.9) -6.9% -2.2%
Total cost of
goods sold (301.2) -42.2% (276.3) -41.8% 9.0%
----------------------------------------------------------------------
Gross margin 412.9 57.8% 384.3 58.2% 7.4%
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Advertising and
promotion (143.7) -20.1% (130.8) -19.8% 9.9%
Selling and
distribution
expenses (76.1) -10.7% (72.7) -11.0% 4.7%
----------------------------------------------------------------------
Trading profit 193.1 27.0% 180.8 27.4% 6.8%
----------------------------------------------------------------------
General and
administrative
expenses (46.9) -6.6% (43.3) -6.6% 8.1%
Other operating
revenues 6.9 1.0% 5.8 0.9% 19.6%
Amortisation of
goodwill and
trademarks (28.4) -4.0% (27.8) -4.2% 2.5%
Non-recurring
expenses (2.5) -0.3% (0.8) -0.1% 206.2%
----------------------------------------------------------------------
EBIT = Operating
income 122.2 17.1% 114.7 17.4% 6.6%
----------------------------------------------------------------------
Net interest income
(charges) (8.8) -1.2% (6.1) -0.9% 45.5%
Exchange-rate gains
(losses). net 1.6 0.2% 8.2 1.2% -80.1%
Other non operating
income (charges) 23.1 3.2% 6.6 1.0% 246.6%
----------------------------------------------------------------------
Profit before taxes
and minority
interests 138.1 19.3% 123.4 18.7% 11.9%
----------------------------------------------------------------------
Minority interests (17.9) -2.5% (15.8) -2.4% 12.7%
----------------------------------------------------------------------
Group's profit
before taxes 120.2 16.8% 107.6 16.3% 11.8%
----------------------------------------------------------------------
Taxes (40.4) -5.7% (20.9) -3.2% 93.4%
----------------------------------------------------------------------
Group's net profit 79.8 11.2% 86.7 13.1% -7.9%
----------------------------------------------------------------------
Depreciation (15.4) -2.2% (14.4) -2.2% 7.3%
Amortisation of
goodwill,
trademarks and
other intangibles (31.6) -4.4% (30.9) -4.7% 2.1%
Total depreciation
and amortisation (47.0) -6.6% (45.3) -6.9% 3.7%
EBITDA 169.2 23.7% 160.0 24.2% 5.8%
EBITA (2) 150.7 21.1% 142.4 21.6% 5.8%
----------------------------------------------------------------------
(1) Net of discounts and excise duty.
(2) EBITA = EBIT before amortisation of goodwill and trademarks.
Table 4) Campari Group - consolidated balance sheet
----------------------------------------------------------------------
31 December 2003 31 December 2002 Change
----------------------------------------------------------------------
EUR million EUR million EUR million
Cash and banks 133.6 103.5 30.1
Marketable securities 1.9 4.2 (2.3)
Accounts receivable,
net of devaluation
reserve 174.2 137.7 36.5
Inventories 106.4 94.9 11.5
Other current assets 55.4 44.2 11.2
----------------------------------------------------------------------
Total current assets 471.5 384.5 87.0
----------------------------------------------------------------------
Tangible assets, net 152.4 144.2 8.2
Goodwill, net 552.2 437.3 114.9
Other intangible
assets, net 19.4 16.0 3.4
Financial assets 7.8 8.7 (0.9)
Other non-current
assets 5.8 3.4 2.4
Treasury shares 31.0 31.0 0.0
----------------------------------------------------------------------
Total non-current
assets 768.6 640.6 128.0
----------------------------------------------------------------------
Total assets 1,240.1 1,025.1 215.0
----------------------------------------------------------------------
Short-term financial
debt 30.1 122.1 (92.0)
Accounts payable 127.6 135.5 (7.9)
Other current
liabilities 78.1 52.5 25.6
----------------------------------------------------------------------
Total current
liabilities 235.8 310.1 (74.3)
----------------------------------------------------------------------
Medium and long term
loans 398.1 181.0 217.1
Employee's termination
pay 15.6 13.1 2.5
Other non - current
liabilities 37.7 32.0 5.7
Minority interests 4.7 10.0 (5.3)
----------------------------------------------------------------------
Total non - current
liabilities 456.1 236.1 220.0
----------------------------------------------------------------------
Shareholders' equity 548.2 478.9 69.3
----------------------------------------------------------------------
Total liabilities and
shareholders' equity 1,240.1 1,025.1 215.0
----------------------------------------------------------------------
The Campari Group The Campari Group is the sixth player in the global spirits sector, trading in over 190 markets around the world with a leading position in the Italian and Brazilian markets and a strong presence in the US, Germany and Switzerland. Following an intensive acquisition campaign undertaken over the last few years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Group has an extensive portfolio that spans three business segments: spirits, wines and soft drinks. The Group's portfolio includes a combination of strong international brands, such as Campari, SKYY Vodka, Cynar and Cinzano and leading local brands, such as CampariSoda, Campari Mixx, Crodino, Sella & Mosca, Zedda Piras, Biancosarti, Lemonsoda, Oransoda and Pelmosoda in Italy, SKYY Blue in the US, Ouzo 12 in Greece and in Germany, Dreher, Old Eight, Drury's and Liebfraumilch in Brazil, Gregson's in Uruguay, Riccadonna in Australia and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. and Mondoro in Russia. The Group has 1.550 employees, and shares of the parent company Davide Campari-Milano S.p.A have been listed on the Milan stock exchange Milan Stock Exchange The largest regional stock exchange in Italy, facilitating more than 90% of the country's trading volume. since July 2001. |
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