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Centrale del Latte d'Italia (CLI)

Business description

Centrale del Latte d'Italia produces and distributes fresh and long-life milk (UHT and ESL) and dairy products. It has a leading position in milk in the Piedmont region of northern Italy and it has expanded to the Veneto, Liguria and Tuscany regions.

Stock data

Market cap.€41.3m
Last close€2.95
High / Low (52 weeks)€4.3 / €2.8
Stock market listingIM
Forecast net debt (€m)66.7
Forecast gearing ratio (%)105
TeamConsumer
SectorFood & Drink

Price performance

%1m3m12m
Actual1.0(9)1.7
Relative *5.24.55.3

* % Relative to local index

Other companies in sector Show

Company news

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (c) P/E (x) P/CF (x)
2016A 119.8 2.9 (2.1) (19.57) N/A N/A
2017A 187.5 7.2 0.0 (1.63) N/A N/A
2018E 184.4 8.0 0.5 2.54 116.1 N/A
2019E 186.2 8.8 1.9 8.71 33.9 N/A

Last updated on 06/08/2018

Latest research

Steady progress

Update | Food & Drink | 06/08/2018

Solid performance

Outlook | Food & Drink | 16/05/2018

Sales improvement

Update | Food & Drink | 19/03/2018

Recovery continues

Update | Food & Drink | 15/11/2017

Strong revenue growth

Update | Food & Drink | 09/08/2017

Steady

Outlook | Food & Drink | 22/06/2017

Integration progressing

Update | Food & Drink | 09/03/2017

Integration proceeding to plan

Update | Food & Drink | 18/11/2016

CLI emerges

Update | Food & Drink | 11/10/2016

Challenging backdrop

Update | Food & Drink | 05/08/2016

Doubling up

Initiation | Food & Drink | 13/07/2016

Investment summary

Despite the continued challenging consumer environment in Italy and across Western Europe during H118, Centrale del Latte d’Italia’s (CLI’s) business continued to perform well, in part due to the price increases implemented during Q217. Vegetable-based drinks and the export business remained stand-out performers, albeit from a low base, and fresh milk also performed well. We leave our FY18 revenue forecasts unchanged, but we adjust our estimates for the sale of the prepared salads plant. Our EBITDA forecast increases as labour costs are reduced thanks to the new agreement and our fair value nudges up to €3.35 per share (from €3.30).

Last updated on 06/08/2018

Industry outlook

The Italian fresh milk and extended shelf-life market was worth €543m in 2017 (source: IRI Infoscan Hypermarkets + Supermarkets), but is localised, with different players in different regions. The market has stabilised following a few years of contraction as a result of volume declines caused by the economic crisis and a fashion for dairy-free diets. CLI has been gaining share in the regions in which it operates and the Mukki brand acquired through CLF presents interesting opportunities for expansion.

Last updated on 27/07/2018

Key management

Luigi Luzzati, Chairman
Vittorio Vaudagnotti, CFO

Company address

Via Filadelfia 220
Turin
10137
Italy
+39 011 3240200
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