Campari Group

14/11/2005

Campari approves results for the first nine months to 30 September 2005

---

Milan, 14 November 2005 - The Board of Directors of Davide Campari-Milano S.p.A. has approved the quarterly report as at 30 September 2005. The Group’s consolidated results for the first nine months of 2005, prepared according to IAS / IFRS accounting standards, were positive and showed growth in sales and at all levels of profitability compared to the same period last year.

Consolidated results	2005 nine-months results € million	2004 nine-months results € million	Change at actual exchange rates	Change at constant exchange rates
Net sales	543.3	526.2	3.3%	3.4%
Trading profit	158.6	153.9	3.1%	4.2%
EBITDA before one-off's	132.4	127.0	4.3%	5.8%
EBITDA	135.9	128.4	5.8%	7.3%
EBIT before one-off's	119.5	114.3	4.5%	6.4%
Operating profit = EBIT	123.1	115.7	6.4%	8.2%
Group's pre-tax profit	112.8	96.6	16.8%	18.5%

CONSOLIDATED RESULTS FOR THE FIRST NINE MONTHS OF 2005
In the first nine months of 2005, Group sales totalled € 543.3 million, an increase of 3.3% (+3.4% at constant exchange rates).

Note that with the introduction of new international accounting standards, the Campari Group, in line with the practices of the main international operators in the spirits and wines sector, has adopted a strict interpretation of IAS 18 in relation to expenses that may be classed as discounts in calculating its revenues. According to the standard interpretation, trade allowances have been reclassified as discounts, and therefore have a direct impact on net sales.

The overall change in consolidated sales, shown in accordance with the new interpretation, resulted from organic growth of 2.2% and a negative exchange rate effect of 0.1%. External growth of 1.1% came from sales of third-party brands that the Group has begun distributing (Jack Daniel's and other Brown-Forman brands on the Italian market, and to a lesser extent, Martin Miller's gin in the US).

Trading profit increased by 3.1% to € 158.6 million (+4.2% at constant exchange rates), or 29.2% of sales.

EBITDA before one-off's increased by 4.3% (+5.8% at constant exchange rates) to € 132.4 million, or 24.4% of sales.

EBITDA rose by 5.8% (+7.3% at constant exchange rates) to € 135.9 million, or 25.0% of sales.

EBIT before one-off’s went up by 4.5% (+6.4% at constant exchange rates) to € 119.5 million, or 22.0% of sales.

EBIT increased by 6.4% (+8.2% at constant exchange rates) to € 123.1 million, or 22.7% of sales.

With regard to depreciation and amortisation, please note that following the adoption of IAS/IFRS, the amortisation of intangible assets no longer includes goodwill and trademark amortisation.

The Group’s pre-tax profit was € 112.8 million, an increase of 16.8% (+18.5% at constant exchange rates).

At 30 September 2005, net debt stood at € 327.5 million (€ 355.8 million at 30 June 2005).

SALES IN THE FIRST NINE MONTHS OF 2005
The spirits segment, which accounts for 66.0% of total sales, recorded growth of 4.8%, the combination of organic growth of 3.1% and external growth of 1.7%. The Campari brand grew by 1.1% at constant exchange rates (+1.7% at actual exchange rates). Sales of SKYY Vodka, including the flavoured lines, rose by 8.8% at constant exchange rates (+5.8% at actual exchange rates), thanks to a positive performance in both the US (+6.2% at constant exchange rates) and international markets (over 30% approximately, at constant exchange rates). Regarding the other main brands, the spirits segment benefited from strong performances from Aperol (+19.2%), Cynar (+19.4% at constant exchange rates), the Brazilian brands (+4.0% at constant exchange rates) and Zedda Piras liqueurs (+4.6%). Sales of CampariSoda and Ouzo 12 declined by 1.8% and 3.1% at constant exchange rates respectively. Of the brands under licence, 1800 tequila performed well (+12.2% at constant exchange rates).

The wines segment, which accounts for 13.9% of total sales, recorded growth of 5.9%, resulting from organic growth of 6.5% and a negative exchange rate effect of 0.6%. The positive performance of the business was driven by sales of Cinzano vermouth, which grew by 15.0% at constant exchange rates, thanks to a good showing in Italy and other major European markets. Sales of Cinzano sparkling wines rose by 3.3% at constant exchange rates. Sales of wines were also supported by a sound performance from Riccadonna (+32.1% at constant exchange rates) and Mondoro (+15.3% at constant exchange rates), while sales of Sella & Mosca were substantially flat.

Soft drink sales, 19.0% of total sales, recorded almost entirely on the Italian market, fell by 2.1%. The solid performance of Crodino (+3.3%) was offset by a disappointing performance of the less profitable Lipton Ice Tea (-11.3%). Sales of the Lemonsoda, Oransoda and Pelmosoda range, thanks to a good third quarter, remained broadly stable compared to last year (-0.1%).

Looking now at results by region, sales on the Italian market, which accounts for 48.8% of total Group sales, recorded a modest increase of 0.3% in the first nine months of 2005. The Italian business benefited from a positive contribution from external growth (+1.9%), as the Group began distributing Jack Daniel’s and other Brown-Forman brands. In contrast, the decline in organic growth was entirely due to the poor performance of Campari Mixx and Lipton Ice Tea, two low-margin products. The Group’s core business, however, was boosted by strong sales of Aperol, Campari, Crodino and Cinzano vermouth. Sales in Europe (18.6% of consolidated sales) grew by 5.8%, thanks to the strong performance in Germany, Switzerland and other major European markets. In the Americas, which account for 28.0% of total sales, organic growth of 5.0% at constant exchange rates was recorded on the US market (2.3% at actual exchange rates). Sales in Brazil rose by 5.0% at constant exchange rates (+20.8% at actual exchange rates). Sales to the rest of the world, which include duty free sales and account for 4.7% of the total, posted organic growth of 11.3% at constant exchange rates. This result was boosted in particular by a positive performance on the Australian and New Zealand markets.

CONFERENCE CALL
Please note that at 5.00 p.m. (CET) today, Monday 14 November 2005, Campari’s management will hold a conference call to present the Group’s 2005 nine-months results to analysts, investors and journalists. To participate, please dial one of the following numbers:

• from Italy: 800 914 576 (toll free number)


• from abroad: +39 02 3700 8208

The presentation can be downloaded before the conference call from the Investor Relations homepage of Campari’s website, at www.camparigroup.com/investors.

A recording of the conference call will be available from 8.00 p.m. (CET) on Monday 14 November until 7.00 p.m. (CET) on Monday, 21 November. To hear it, please call +44 1296 618 700 (access code: 454464).

Download financial tables (PDF - 8 KB)

The Campari Group
The Campari Group is a major player in the global beverage sector, trading 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 Switzerland. The 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, Aperol, Aperol Soda, Sella & Mosca, Zedda Piras, Biancosarti, Lemonsoda, Oransoda and Pelmosoda in Italy, 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 and Mondoro in Russia. The Group has over 1,500 employees and shares of the parent company Davide Campari-Milano S.p.A are listed on the Italian stock exchange.

FOR FURTHER INFORMATION:

Investor enquiries:	Media enquiries:
Chiara Garavini	Chiara Bressani
Tel.: +39 02 6225 330	Tel.: +39 02 6225 206
Email:investor.relations@campari.com	Email:chiara.bressani@campari.com
Website:www.camparigroup.com
	Moccagatta Pogliani & Associati
	Tel.: +39 02 8693806
	Email:segreteria@moccagatta.it

Download the full press release (PDF - 45 KB)

The document is in PDF format. To view PDFs you need the Adobe Acrobat Reader. This program is available free of charge from the Adobe website.