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’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 20/05/2022Content on Portobello
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Consumer
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Share price graph
Balance sheet |
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| Forecast net debt (€m) | 18.5 |
| Forecast gearing ratio (%) | 39 |
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 |