La Doria

MI: LD

€280.2m market cap

€9.04 last close

La Doria is the leading manufacturer of private-label preserved vegetables and fruit for the Italian (20% revenues) and international (80%) market. It enjoys leading market share positions across its product ranges in the UK, Italy, Germany and Australia.

Investment summary

La Doria continues to post good sales growth, despite the ongoing tough economic backdrop. Organic sales growth of 2.3% in H119 builds on a good H118. The important variables at this time of year are the outcomes of the seasonal campaigns and the corresponding customer negotiations. Raw materials continue to experience inflation, while customers continue to apply downward pressure to prices thus resulting in an unfavourable margin environment. Indeed, the EBITDA margin was down 50bp to 6.5% in H119. Management’s investment programme continues as planned, with €32.5m spent during the period. We leave our forecasts unchanged, and believe the current share price offers a good entry point. Our fair value rises to €14.00 (from €13.60) as we roll forward our DCF.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 669.1 60.1 39.7 98.1 9.2 7.9
2018A 687.9 52.8 33.1 88.2 10.2 5.8
2019E 690.0 53.0 35.0 82.4 11.0 6.8
2020E 717.6 58.7 39.7 93.5 9.7 6.0
Last updated on 19/09/2019
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’. The economic backdrop remains challenging.

Last updated on 19/09/2019
Sector
Consumer
Share price graph
Balance sheet
Forecast net debt (€m) 147.9
Forecast gearing ratio (%) 55
Price performance
%
1m
3m
12m
Actual 13.9 12.2 (25.5)
Relative* 6.8 7.8 (27.1)
52-week high/low €12.1/€7.5
*% relative to local index
Key management
Antonio Ferraioli CEO
Alberto Festa CFO
Patrizia Lepere IR Manager

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