The domestic market remains tough and is characterised by deflation. Centrale del Latte di Torino’s (CLT) flat H1 revenues led to lower profitability as a result of increased brand support costs. In light of the currently challenging backdrop, management now expects flat continuing revenues for 2016. We cut our forecasts to reflect this and our fair value is reduced to €2.83/share, with no upside to the current market.
05 Aug 2016
Challenging backdrop
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Challenging backdrop
Centrale del Latte d'Italia SpA (CLI:MIL) | 0 0 0.0%
- Published:
05 Aug 2016 -
Author:
Sara Welford -
Pages:
5
The domestic market remains tough and is characterised by deflation. Centrale del Latte di Torino’s (CLT) flat H1 revenues led to lower profitability as a result of increased brand support costs. In light of the currently challenging backdrop, management now expects flat continuing revenues for 2016. We cut our forecasts to reflect this and our fair value is reduced to €2.83/share, with no upside to the current market.