Davide Campari: Q1 2025 Fell Short Of My Expectations

Summary

• Davide Campari's Q1 2025 results showed a 4.20% decline in net sales, exacerbated by non-recurring factors like an unfavorable calendar and US logistics delays.
• Management paused M&A activities to focus on deleveraging and optimizing core brands, aiming to save 200 basis points on revenues by 2027.
• Aperol and Campari struggled to grow, raising doubts about long-term growth despite their strong competitive advantage in the aperitif segment.
• I reduced my DVDCF position, reallocating funds to Alphabet and Novo Nordisk, as I see better long-term opportunities elsewhere.

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The results for Q1 2025 raised many doubts among investors in Davide Campari (OTCPK:DVDCF); tariffs will have a significant impact and, a few weeks ago, management decided to change the company's strategy:

The main

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DVDCF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.