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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.
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
FY16 pre-close +ve surprise: Raising FY16, 17, 18 PBT c.1%, 4% and 6%
12 Jan 17
Today’s slightly better-than-expected FY16 pre-close trading statement prompts us to raise our FY16 PBT estimate by c.1%, reflecting the combination of (1) growth in several of HFG’s key markets, (2) strong overall operating performance, and (3) favourable fx translational benefits (recalling that 62% of FY15 sales were ex-UK). To reflect the positive profit contribution impact of the Portuguese j/v agreement signed on January 4th, the j/v income line is boosted by €1.5m (c.£1.3m) and €2.5m (c.£2.2m) in FY17 and FY18 respectively, representing upgrades of c.4% and c.6%. Once operating at full capacity utilisation, the j/v could well add €3m (c.£2.6m) in FY19. To reflect (1) our increased FY16-FY18 forecasts, (2) current peer EV/EBITDA valuation multiples, and (3) our view that HFG now deserves to trade at a premium to the peer group in view of its impressively strong financial track record (i.e. FY06-FY16 since IPO) for organic and investment-led profitable growth, combined with an array of emerging, highly promising initiatives (see our note “Start of a new chapter of growth” published on October 4th) to expand the scale and scope of HFG’s core business, we raise our TP to 805p (previously 755p). Maintain BUY.
10 for 17
09 Jan 17
As always at the start of a year, there are significant uncertainties about the year ahead but I think in 2017, the level of uncertainly has decisively moved up a gear. In fact, a leading economist at the LSE, Ethan Ilzetzki, was recently quoted as saying “I view the current global economic environment as the most uncertain in modern history”. Wow.
Proud as a Peacock
21 Dec 16
Greencore’s (GNC LN, BUY, 310p) Chief Financial Officer Eoin Tonge presented to Whitman Howard’s equity salesforce yesterday, 20th December 2016. Key messages included a positive outlook for UK Food to Go, sustained momentum within the incumbent US business – notable accounts include 7-Eleven and Starbucks – and positive expectations for the newly acquired Peacock Foods. The company appears well placed to perform positively in FY2017
Strengthening the mix – 2016 trading update
11 Jan 17
Stock Spirits (STCK LN, BUY, T/P 240p) released a full year 2016 trading statement this morning. The company announced overall trading in the second half of 2016, and implicitly the full year, was in line with expectations. Whitman Howard’s own 2016 forecasts are for €264m revenue €50m EBITDA. The company is due to release preliminary results on 8 th March 2017.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.