Centrale del Latte d'Italia

IM: CLI

€39.2m market cap

€2.78 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)
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 2.54 110.2 N/A
2019E 186.2 8.8 1.9 8.71 32.1 N/A
Last updated on 19/03/2019
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 19/03/2019
Sector
Consumer
Share price graph
Balance sheet
Forecast net debt (€m) 66.7
Forecast gearing ratio (%) 105
Price performance
%
1m
3m
12m
Actual 2.6 2.9 (14.1)
Relative* (2.1) (10.2) (7.8)
52-week high/low €3.4/€2.6
*% relative to local index
Key management
Luigi Luzzati Chairman
Vittorio Vaudagnotti CFO

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