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.
Consumer |
Update
Consumer |
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Consumer |
Outlook
Consumer |
Flash note
Mirco Di Giuseppe
CFO
Pietro Peligra
Chairman
Roberto Panfili
Co-founder and COO
Simone Prete
CEO
Forecast net debt (€m)
50.2
Forecast gearing ratio (%)
108
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 11.6 | (39.8) | (59.6) |
Relative | 3.4 | (41.4) | (65.9) |
52 week high/low | €34.3/€4.0 |
Portobello’s (POR) H123 demonstrated strong revenue growth as the store expansion continued against an increasingly challenging macroeconomic backdrop. However, profitability was negatively affected by inflationary cost pressures and an unexpected and unfavourable out-of-court settlement to pay a counterparty’s VAT, which will be paid over three instalments by the end of March 2024 from operating cash flow and new financing currently under negotiation. Our forecasts are under review.
Y/E Dec | Revenue (€m) | EBITDA (€m) | PBT (€m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2021A | 85.5 | 16.5 | 13.0 | 262.8 | 2.9 | 1.4 |
2022A | 129.9 | 24.6 | 18.6 | 462.8 | 1.7 | 1.1 |
2023E | 160.8 | 21.9 | 16.5 | 372.1 | 2.1 | 1.2 |
2024E | 197.3 | 28.2 | 24.2 | 436.9 | 1.8 | 0.9 |