Portobello (MIL: POR)

Currency in EUR

Last close As at 04/02/2023

EUR34.00

0.80 (2.41%)

Market capitalisation

EUR117m

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.

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.

Latest Insights

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Consumer

Portobello – Executive Interview

Consumer

Portobello SpA – executive interview

Sector

Consumer

Equity Analyst

Russell Pointon

Russell Pointon

Director, Consumer

Key Management

  • Mirco Di Giuseppe

    CFO

  • Pietro Peligra

    Chairman

  • Roberto Panfili

    Co-founder and COO

  • Simone Prete

    CEO

Balance Sheet

Forecast net debt (€m)

30.5

Forecast gearing ratio (%)

64

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 26.9 85.8 (14.4)
Relative 13.2 56.5 (12.9)
52 week high/low €40.9/€15.8

Financials

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 reflected price investment to drive footfall and upfront investment in new trading space. Our operational estimates were unchanged, but our DCF-based valuation reduced 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 17.4 8.7
2021A 85.5 16.5 13.0 260.74 13.0 6.4
2022E 137.9 22.2 17.8 332.60 10.2 5.2
2023E 211.0 34.0 28.0 506.86 6.7 3.5

Research

Thematics

Consumer

ConsumerWatch – January 2023

Consumer

ConsumerWatch – October 2022

Consumer

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