This article first appeared on GuruFocus .
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Organic Top-Line Growth:+2.7% in H1 2026, with Q2 at +2.5%.
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Gross Margin:130 bps organic accretion, driven by positive mix, input cost benefits, and lower tariff impact.
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EBIT Adjusted Margin:130 bps organic expansion.
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SG&A:60 bps organic benefit in H1, on track for 70 bps full-year guidance.
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Adjusted EBITDA:EUR368 million, reflecting a margin of 23.7% and +8.5% organic growth.
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Group Net Profit (Adjusted):Grew 4.7%.
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Recurring Free Cash Flow Conversion (before operating working capital changes):64%.
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Leverage:2.6 times net debt to EBITDA.
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Operating Working Capital:52% of sales, seasonally higher.
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Tariff Impact:EUR7 million in H1; full-year guidance reduced to ~EUR20 million from EUR30 million.
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Europe Organic Growth:+1.9%.
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North America Organic Growth:+2.6% (US at +1.5%).
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Developing Markets Organic Growth:+9.1%.
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APAC & GTR Organic Growth:Flat (0%).
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Aperitifs Top-Line Growth:+4% (Aperol +3.3%, Campari +2.3%).
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Whiskey & Rum Organic Decline:-6%.
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Espolon (Tequila) Growth:+8.2%.
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Cognac & Champagne Growth:+4.6%.
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Local Brands Growth:+5.7%.
Release Date: July 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Davide Campari-Milano NV ( DVDCF ) reported its fifth consecutive quarter of organic top-line growth, with H1 2026 organic growth of 2.7% and Q2 growth of 2.5% despite a difficult comparison base.
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The company is gaining market share in 95% of its key markets, driven by strong sellout performance on priority brands, particularly in the strategic on-premise channel.
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Gross margin improved by 130 basis points in H1, supported by positive mix from the aperitif portfolio, input cost benefits, and lower-than-expected tariff impacts.
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New product innovations, such as Aperol on Tap and Campari Spritz Ready to Serve, are showing strong early results, with Aperol on Tap capturing 1.5% market share of premium beer in Italy within three months.
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The company is successfully streamlining its portfolio through disposals of non-core brands like rum agricole and Cabo Wabo, reducing complexity and allowing focus on fewer, bigger bets.
Negative Points
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Germany remains a challenging market due to subdued consumer confidence and wallet pressure, impacting overall European growth.
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The House of Whiskey and Rum segment declined 6% in H1, driven by category challenges in the US, South Korea impacts, and temporary supply constraints on Russell's Reserve.
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Operating working capital as a percentage of sales remained high at 52% due to seasonality, including inventory build-up for peak season and increased maturing liquid stocks.
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The US market remains tricky, with overall category pressure and pricing aggression from competitors, though Davide Campari-Milano NV ( DVDCF ) is outperforming on priority brands.
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Logistics costs are increasing in H2 due to geopolitical volatility, which may offset potential tariff refund benefits and pressure margins in the second half of the year.
Q & A Highlights
Here are the key highlights from the Davide Campari-Milano NV ( DVDCF ) first half 2026 earnings call, focusing on the most significant Q&A exchanges.
Q: On the US market, can you clarify if there were any further inventory adjustments in Q2 and how the pricing environment is evolving? Also, what are you doing to stabilize drags like Grand Marnier and Wild Turkey? A: (Simon Hunt, CEO) There were no extraordinary inventory adjustments in Q2; it was business as usual. On pricing, we see some competitors getting more aggressive in challenged categories like Tequila, but we are not seeing a read-across impacting Espolon, as we believe our price strategy and value proposition are correct. For Grand Marnier, we see opportunity as on-trade traffic returns and consumers look to trade up. For Wild Turkey, it remains a tough category, and we are rebasing our strategy with new innovations like RTDs in Australia to carve out our share.
Q: On the topline guidance of ~3% for the full year, which implies a similar or slightly higher growth in H2 despite a more difficult comparison base, where do you see the incremental positives? And on margins, you mentioned H2 will be flattish; what is the main offset to the positive tariff benefit and mix? A: (Simon Hunt, CEO) The momentum is coming from strong execution on our brands, particularly from Q2 and into Q3, with strong activations across North America and Europe. We have work to do, but that is our target. (Francesco Mele, CFO) On margins, we still expect a positive COGS evolution in H2, but to a lesser extent than H1. The main offset is that while mix remains positive, we feel more pressure on price, so the net margin impact is lower. Additionally, logistics costs have increased and are expected to continue.
Q: On Italy, can you talk about the market and the new Aperol on Tap? It seems to have reached 1.5% of the premium beer market. What is the price point and how much further upside is there? Also, in the US, are you seeing any change in the on-premise environment? A: (Simon Hunt, CEO) In Italy, the key is the broadening of occasionality through new formats. For example, at a recent concert, we sold 22,000 Aperol Spritz in one night via the tap, reaching a new, dynamic crowd. This is about expanding the ritual into new occasions. In the US, the market remains tricky, but our priority brands are significantly outperforming in both NAPCO and on-premise. Our full-year guidance balances the strong performance of these brands against the broader portfolio.
Q: On the recently announced brand disposals (Rum Agricole, Cabo Wabo, Bisquit), can you help us think about the impact on earnings in 2027? A: (Francesco Mele, CFO) The total perimeter impact for 2026 is EUR70 million in sales and EUR30 million in EBIT, mainly from Cinzano and Averna. The latest disposals are for about EUR40 million in total sales. Critically, these last brands had a very negligible EBIT contribution and were margin-dilutive. Therefore, these disposals are accretive to both gross margin and EBIT.
Q: On the US, you now have 21 brand activators in the market for about six months. Has anything unexpected come from this? And on Espolon, is there anything inherent to the brand, like its additive-free status, driving its outperformance? A: (Simon Hunt, CEO) Nothing unexpected, but two beneficial points: many competitors are pulling back on on-trade support, making our investment very welcome. Second, Campari has a strong history with bartenders via the Campari Academy, which reinforces our trade relationships. On Espolon, the key is focusing on what we do well: building distribution, securing menu placements (double our target), and having a great liquid at a fair price. The brand's irreverence and fun nature, like the cocktail fights, resonate well. We don't focus on the additive-free status; we focus on great tequila.
Q: On the new RTD formats, you've had good feedback in Europe with no cannibalization. What are your plans to expand RTDs into the US, and would you use a local partner or do it in-house? A: (Simon Hunt, CEO) As a principle, we prefer local production to be close to the consumer, especially for higher volumes. However, we would likely use a partner's capacity rather than build our own, as there is more than enough capacity in the US. We will continue to see how the category develops.
Q: On the SG&A benefit of 70 bps for the year, you've already achieved 60 bps in H1. Is there any reason for a slowdown in the second half? Also, was there any impact from the FIFA World Cup on your Q2 numbers? A: (Francesco Mele, CFO) We don't expect a slowdown. To the contrary, we expect further efficiency as we change our operating model. (Simon Hunt, CEO) The World Cup was not a big contributor. We had some successful block parties for Espolon and got Aperol into high-volume football accounts in the UK, but it's more about our brands fitting into convivial occasions rather than the event itself.
Q: On the US sellout, there was a slight moderation from Q1 to H1. If overall sellout trends improve, would you take the opportunity to do more inventory clean-up on non-priority brands? And on working capital, what drove the significant increase in receivables? A: (Simon Hunt, CEO) The moderation is partly due to comps. The US market is still tricky, but we are carving out share. We are well-positioned for the long term. (Francesco Mele, CFO) The increase in receivables is a positive business-related reason, linked to many innovation launches (RTDs, ready-to-serve) that were concentrated at the end of the quarter to be available for the peak season.
Q: On the gross margin phasing, can you elaborate on the reasons for the H1 benefit and the expectation for a lesser impact in H2? Also, on tariffs, why is the H2 impact expected to be larger than H1? A: (Francesco Mele, CFO) The H1 gross margin benefit came
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
