Centrale del Latte d'Italia

IM: CLI

€38.2m market cap

€2.73 last close

Centrale del Latte d’Italia produces and distributes fresh and long-life milk (UHT and ESL) and dairy products. It has a leading position in milk in the Piedmont region of northern Italy and it has expanded to the Veneto, Liguria and Tuscany regions.

Investment summary

The economic and consumer environment in Italy remains challenging, and CLI’s comparatives are tougher as we are now cycling a full year of price increases. The export business remains the stand-out performer, albeit from a low base. Management is continuing to invest in the business to keep it competitive. FY18 results will be published on 15 March.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2016A 119.8 2.9 (2.1) (19.57) N/A N/A
2017A 187.5 7.2 0.0 (1.63) N/A N/A
2018E 184.4 8.0 0.5 2.54 107.5 N/A
2019E 186.2 8.8 1.9 8.71 31.3 N/A
Last updated on 20/02/2019
Industry outlook

The Italian fresh milk and extended shelf-life market was worth €543m in 2017 (source: IRI Infoscan Hypermarkets + Supermarkets), but is localised, with different players in different regions. The market has stabilised following a few years of contraction as a result of volume declines caused by the economic crisis and a fashion for dairy-free diets. CLI has been gaining share in the regions in which it operates and the Mukki brand acquired through CLF presents interesting opportunities for expansion.

Last updated on 20/02/2019
Sector
Consumer
Share price graph
Balance sheet
Forecast net debt (€m) 66.7
Forecast gearing ratio (%) 105
Price performance
%
1m
3m
12m
Actual (0.7) (0.4) (17.3)
Relative* (3.6) (9.4) (7.5)
52-week high/low €3.4/€2.6
*% relative to local index
Key management
Luigi Luzzati Chairman
Vittorio Vaudagnotti CFO

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