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Research Tree provides access to ongoing research coverage, media content and regulatory news on LA DORIA SPA. We currently have 6 research reports from 1 professional analysts.
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LA DORIA SPA
LA DORIA SPA
A tough environment
21 Nov 16
As outlined at the time of the H1 results, La Doria’s operating environment remains tough, with significant deflation on the sales side and raw material inflation on the cost side. The effects of a difficult 2016 tomato campaign are still feeding through, and the devaluation of sterling is unhelpful as it may cause a loss of competitiveness in the vegetable line vis-à-vis British domestic producers. Management expects a recovery from mid-2017, when the new tomato campaign will start to come through.
A challenging environment
05 Oct 16
Following an exceptionally strong FY15, H1 16 brought a perfect storm of a weak macroeconomic backdrop in many end-markets, sterling devaluation, a weak tomato campaign and higher fruit and pulse costs. Management has therefore updated its rolling three-year plan for the more challenging environment and revised down estimates. Our DCF-derived fair value moves to €10.91/share (from €15.84) given the downgrades to estimates.
Weathering the storm
31 May 16
Following a tough tomato campaign in 2015, La Doria management has kept costs under control and delivered another quarter of results in line with expectations. The overarching strategy of shifting the production mix towards non-seasonal, value-added products with higher operating margins and lower volatility is paying off. La Doria continues to trade at a significant discount to its peers, and our DCF value of €15.84 (unchanged) suggests 26% upside to the share price.
Another strong year
02 Mar 16
La Doria has reported yet another strong set of results. The updated threeyear plan provides strategic continuity. As previously highlighted, due to the unfounded fears of tomato overproduction at the start of the campaign, lower sales prices were achieved for new contracts. Following the FY results and updated business plan, we have cut our sales forecasts to reflect the lower 2016 base, left our EBITDA forecasts broadly unchanged, and increased our PBT and net profit estimates in line with the new guidance.
Another strong quarter
20 Nov 15
La Doria reported another set of strong results. Its overarching objective is to reduce the volatility of the business and to improve visibility. To that end, the acquisition of Pa.fi.al is strategically very helpful. As disclosed at the H1 results, fears of an abundant tomato crop in the early part of the campaign resulted in lower sales prices being achieved for new contracts, and hence 2016 is likely to see a small reduction in EBITDA. We are leaving our forecasts unchanged.
Acquisition bearing fruit
22 Sep 15
Another excellent set of results confirms La Doria’s strategy is on track: the group is delivering on its overarching objective to reduce the volatility of the business and improve visibility. The Pa.fi.al business is being fully integrated and continues to perform well. The hot summer in Italy resulted in fears of an abundant tomato processing campaign, hence we now forecast a fall in sales in 2016, although lower costs should mitigate the EBITDA impact.
Salient play in a healthy industry
16 Feb 17
PepsiCo’s (PEP US, N/R) full year figures reconfirmed growth expectations for the US FMCG giant in 2017. PepsiCo – which generates one third of its revenue from North American beverages – looks for 3% organic sales growth in 2017. Our own view about UK soft drinks remains positive. Flexibility around sugar, ongoing innovation, potential price support from a sugar tax and further M&A are all consistent with the industry maintaining sales growth and delivering positive share price performances.
13 Feb 17
Middlesbrough-based pawnbroker Ramsdens Holdings is set to join AIM on 15 February. Its growth is not coming from its core business but from providing foreign currency, pre-paid travel cards and international payments. The strategy is to increase the group’s online activities and grow the number of branches. In the year to March 2016, group revenues improved from £29.2m to £30m. The accounts of the main subsidiary show that foreign-currency margin rose from £5.36m to £7.59m. This contributes 35% of group gross profit. By contrast, the core business of pawnbroking, precious metal purchases and retail sales fell from £21.3m to £19.8m. Revenues from other financial services were flat at £2.6m. Ramsdens has 127 sites and last year it made an operating profit of £3.19m. In the six months to September 2016, revenues increased from £16.2m to £18.4m and operating profit improved from £2.81m to £3.48m. The placing will raise £15.6m at 86p a share, valuing the company at £26.5m. NorthEdge Capital, which backed a buyout in September 2014, will receive just over £10m from share sales. The NorthEdge stake will fall from 75.6% to 30.7%. The other £5m will go to the company and be used to repay the remaining loan notes and the costs of the flotation. By the end of March 2016, there were still £4m of loan notes outstanding to NorthEdge, with £4.86m paid off during the previous year.
New CEO resets targets: cost savings ahead, mid single-digit top-line target by 2020
16 Feb 17
Nestle’s FY and Q4 update: In Q4, sales grew organically +2.9% (weaker than 3.5% expected). In Q4, Zone Americas, EMENA and Others slowed down compared to the previous quarter. Zone AOA (+4.4%), Waters (+5.4%) and Nestle Nutrition performed better than in Q3. On a FY basis, organic sales are up +3.2% (cons. 3.4%) with RIG +2.4% and pricing of 0.8%. On reported figures, sales are up +0.8 (FX: -1.6%). The trading operating margin is up 30bp on constant FX and +20bp on reported figures (in line with consensus). FY17 outlook: top-line growth of 2-4%, stable operating margin as a result of a considerable increase in restructuring costs to drive future profitability. EPS is expected to rise at constant FX and capital efficiency is also expected to rise. For the mid-term, Nestlé targets mid single-digit top-line growth and 200bp in structural cost savings by 2020. The proposed dividend is CHF2.30 (vs. CHF2.25 last year).
PG: Growth Prospects in Healthcare
26 Jan 17
We expect the volatility of the last 3 months to continue, with macro events, particularly the uncertainty brought by President Trump and his focus on pharma pricing and dismantling the Affordable Care Act, likely to keep healthcare in the headlines for the wrong reasons. We believe the more highly valued larger stocks are likely to struggle to break out to new trading levels, but note there remains good value within the smaller end of the sector for stockpickers, with company specific events likely to drive some stocks well ahead of the crowd.
Foundations laid; building starts
15 Feb 17
Last week RM posted a reassuring set of prelims (adj. PBT 4% ahead) that showed continued progress within RM Education (+6% EBIT gr’th) and RM Results (+22% EBIT gr’th) – achievements that shouldn’t be overshadowed by the challenging (but temporary) external market, which is weighing on RM Resources (-9% EBIT). Indeed, combined with Connect Education & Care, we are bullish on the division’s long-term prospects, and as such we raise our target price to 207p and retain our Buy recommendation.