portobello

Portobello

MI: POR

Market Cap€110m

Last Close €31.3

Portobello aims to build a national Italian retail presence via a rapid rollout of own-stores and franchises. It uses a combination of barter (own and third-party media) and cash purchases to source branded products from its suppliers.

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Investment summary

Portobello’s unique business model, primarily the use of media barter, enables it to source branded products at extremely competitive prices for sale, in its own retail outlets and to other distributors in Italy, at a significant discount to its competitors. Management’s aspiration is to leverage this competitive advantage to grow its retail operations to national coverage over the long term, which suggests significant potential for new space from its current low market penetration versus its peers. Our discounted cash flow-based valuation of €121 indicates significant upside potential if Portobello can successfully expand across Italy.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2020A 62.7 10.9 8.3 195.58 16.0 8.0
2021A 85.5 16.5 13.0 260.74 12.0 5.9
2022E 137.9 22.2 19.0 345.82 9.1 4.5
2023E 211.0 34.0 29.2 528.58 5.9 2.9
Industry outlook

Portobello’s aspiration is to grow its retail footprint across Italy. If management can execute this strategy, it would produce premium revenue and profit growth in the long term versus its peers. With a clearer outlook for the economy following the initial COVID-19 pandemic, management will accelerate its store expansion plans from FY22.

Last updated on 20/05/2022
Content on Portobello
Portobello SpA – executive interview
Consumer | Edison TV | 6 May 2022
Portobello SpA – Scaling to a national presence
Consumer | research Initiation | 12 April 2022
View more
Share price graph
Balance sheet
Forecast net debt (€m) 18.5
Forecast gearing ratio (%) 39
Price performance
%
1m
3m
12m
Actual (6.8) (14.7) (39.1)
Relative* (3.7) (6.3) (37.3)
52-week high/low €51.0/€27.1
*% relative to local index
Key management
Pietro Peligra Chairman
Simone Prete CEO
Mirco Di Giuseppe CFO
Roberto Panfili Co-founder and COO

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