portobello

Portobello

MI: POR

Market Cap€64m

Last Close €18.35

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 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 28/09/2022
Content on Portobello
Portobello SpA – Offering value in tough times
Consumer | research Update | 23 September 2022
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Portobello SpA – Creating an omnichannel presence
Consumer | research Flash note | 24 June 2022
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Portobello SpA – executive interview
Consumer | Edison TV | 6 May 2022
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Share price graph
Balance sheet
Forecast net debt (€m) 30.5
Forecast gearing ratio (%) 64
Price performance
%
1m
3m
12m
Actual (23.9) (32.8) (56.2)
Relative* (19.5) (28.3) (45.8)
52-week high/low €43.7/€17.0
*% 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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