Edison Investment Research - Centrale del latte di Italia (CLI) Centrale del Latte dItalia - Steady performance in a tough environment

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Edison Investment Research

Sara Welford

Centrale del Latte d'Italia - Steady performance in a tough environment

Centrale del Latte dâ€™Italia (CLI) had a good year in FY18, with total revenue up 1.2% and EBITDA margins up 40bp. The economic and consumer environment in Italy remains challenging. The export business continues to be a standout performer, albeit relatively small. We leave our underlying forecasts unchanged and our fair value remains â‚¬3.35 per share.

21/03/2019 5 EN

Underlying

Centrale del latte di Italia

Centrale del Latte d'Italia SpA, formerly Centrale del Latte di Torino & C SpA, is an Italy-based company engaged in the dairy products sector. The Company deals with the processing, transformation and sale of milk and dairy products. The Company offers packaged products in the fresh and ultra-fresh, and fresh vegetables. Its product's portfolio encompasses fresh pasteurized milk, ultra-high temperature processing (UHT) milk, yogurt, creams, fresh pasteurized and UHT cream, fresh-cut products, including vegetables and fruits, as well as other packaged products. Its offer consists of salads, juices, desserts, eggs, butter, fermented milk using acidophilus and bifida, and a range of pastas and cheeses, among others. Production is carried out in production units located in Turin, Casteggio (Pavia), Bardineto (Savona), Vicenza and Rapallo (Genoa). The Company operates through Latte Rapallo SpA, Centrale del Latte di Firenze Pistoia Livorno SpA, and Centrale del Latte di Vicenza SpA.

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IT0003023980 Italy

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Sara Welford

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Centrale del Latte d'Italia - Deteriorating consumer environment

The economic and consumer environment in Italy remained challenging in Q3, and Centrale del Latte dâ€™Italia (CLI) also faced tough comparatives as we start to cycle a full year of price increases. The export business continued to be a stand-out performer, albeit from a low base. We leave our forecasts unchanged, but we note the current headwinds are unlikely to abate in the near future. We expected H2 to be more difficult than H1 as the comparatives got tougher, so we leave our estimates unchanged. Our fair value remains â‚¬3.35 per share.

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Centrale del Latte d'Italia - Steady performance in a tough environment

Centrale del Latte d'Italia - Deteriorating consumer environment

Centrale del Latte d'Italia - Steady progress

Norcros - Sale of Johnson Tiles UK agreed

Henderson Far East Income - Repositioning to raise total returns

Freelancer - AI to drive return to growth

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