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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Portobello demonstrated strong revenue growth in H122 as it executed its retail-focused expansion strategy. Significantly, given the greater pressures on consumer discretionary income, the more established stores grew on an underlying basis, according to management. It believes the value-based retail offer is well positioned for more difficult economic times. Lower profitability reflects price investment to drive footfall and upfront investment in new trading space. Our operational estimates are unchanged, but our DCF-based valuation reduces to €115/share (€121/ share previously) to reflect a higher bond yield and net debt position.
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 | 9.4 | 4.7 |
| 2021A | 85.5 | 16.5 | 13.0 | 260.74 | 7.0 | 3.4 |
| 2022E | 137.9 | 22.2 | 17.8 | 332.60 | 5.5 | 2.8 |
| 2023E | 211.0 | 34.0 | 28.0 | 506.86 | 3.6 | 1.9 |
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. Management is accelerating its store expansion plans from FY22, following the disruption caused by the outbreak of COVID-19.
Last updated on 28/09/2022Content on Portobello
Sector |
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Consumer
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Share price graph
Balance sheet |
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| Forecast net debt (€m) | 30.5 |
| Forecast gearing ratio (%) | 64 |
Price performance
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Key management |
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| Pietro Peligra | Chairman |
| Simone Prete | CEO |
| Mirco Di Giuseppe | CFO |
| Roberto Panfili | Co-founder and COO |