Campari: A good release despite the deteriorated outlook for organic EBIT margin increase in 2018
Campari: (NEUTRAL, Fair Value EUR7 (-3%))A good release despite the deteriorated outlook for organic EBIT margin increase in 2018
Camapri unveiled a good set of results, notably with a nice acceleration of Aperol. In terms of outlook, we expect a top line normalization in H2 post a very strong Q2 helped by positive phasing. We now anticipate EBIT margin to grow 20bp in organic over the year vs +60bp previously. This is due to higher A&P and SG&A expenses. But we only cut our reported EBIT margin assumption by 10bp as FX should be less negative than expected. Neutral recommendation maintained.
Davide Campari-Milano is engaged in manufacturing spirits industry with an extensive product portfolio in three business lines: spirits, which includes internationally brands such as Appleton, Campari, Carolans, SKYY vodka and Wild Turkey, as well as brand in local markets including Aperol, Cabo Wabo, Cynar, Frangelico, GlenGrant, Ouzo 12, X-Rated Fusion Liqueur, Zedda Piras, and Brazilian brands Dreher, among others; wines, which main regional brands are Liebfraumilch, Mondoro, Odessa, Riccadonna, Sella&Mosca and Teruzzi&Puthod; and soft drinks, which covers the extended ranges of Crodino and Lemonsoda. Co. operates in 190 countries with registred positions in Europe and the Americas.
Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.
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