Centrale del Latte d'Italia


€39.3m market cap

€2.81 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

Centrale del Latte d’Italia (CLI) had a good year in FY18, with total revenue up 1.2% and EBITDA margins up 40bp. The economic and consumer environment in Italy remains challenging. The export business continues to be a standout performer, albeit relatively small. We leave our underlying forecasts unchanged and our fair value remains €3.35 per share.

Y/E Dec
Revenue (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 182.2 7.2 0.0 (1.63) N/A N/A
2018A 183.1 7.7 (0.1) (1.91) N/A N/A
2019E 182.1 8.5 1.5 7.11 39.5 N/A
2020E 184.0 8.9 2.0 9.08 30.9 N/A
Last updated on 21/03/2019
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 21/03/2019
Share price graph
Balance sheet
Forecast net debt (€m) 77.2
Forecast gearing ratio (%) 119
Price performance
Actual 2.9 3.7 (13.0)
Relative* (2.4) (10.6) (6.8)
52-week high/low €3.4/€2.6
*% relative to local index
Key management
Luigi Luzzati Chairman
Vittorio Vaudagnotti CFO

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