La Doria

MI: LD

€409.2m market cap

€13.2 last close

La Doria is the leading manufacturer of private-label preserved vegetables and fruit for the Italian (18% FY19 revenues) and international (82%) market. It has leading market share positions across its product ranges in the UK, Italy, Germany and Australia.

Investment summary

The COVID-19 pandemic has boosted demand as consumers eat more meals at home. The ongoing industrial plan is boosting capacity in the higher-margin products and structurally reducing costs in the longer term. The past two quarters have benefitted significantly from increased home consumption, and we expect the trend to continue throughout FY20, though consumption is slowly returning to more normal levels. The first phase of the seasonal tomato campaign went well, though agricultural yields in September are expected to be lower. While negotiations are not yet complete, we expect FY21 profitability in the segment to improve, with increased pricing and a more positive industry backdrop, due to lower stocks and higher demand.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 687.9 52.8 33.1 88.2 15.0 8.5
2019A 717.7 56.0 32.7 64.0 20.6 10.6
2020E 839.7 72.3 53.8 133.5 9.9 7.5
2021E 814.5 72.5 52.0 129.2 10.2 7.2
Industry outlook

La Doria’s strategic objectives, published as part of its three-year plan, are broadly unchanged: the priority is to expand the higher margin and less volatile parts of the business to reduce the dependence on the more unpredictable ‘red line’.

Last updated on 27/11/2020
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Sector
Consumer
Share price graph
Balance sheet
Forecast net debt (€m) 130.3
Forecast gearing ratio (%) 44
Price performance
%
1m
3m
12m
Actual 6.3 17.9 43.8
Relative* (10.8) 5.2 52.1
52-week high/low €13.7/€6.2
*% relative to local index
Key management
Antonio Ferraioli CEO
Alberto Festa CFO
Patrizia Lepere IR Manager

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