€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 |
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| Consumer |
Share price graph
Balance sheet |
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| Forecast net debt (€m) | 66.7 |
| Forecast gearing ratio (%) | 105 |
Price performance
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12m |
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Key management |
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| Luigi Luzzati | Chairman |
| Vittorio Vaudagnotti | CFO |
