Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on PARMALAT SPA. We currently have 8 research reports from 1 professional analysts.
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FY in line with expectations
06 Mar 17
FY update: sales are up +2.5% at constant FX, scope of consolidation and excluding hyperinflation in Venezuela and +1.1% on reported figures. EBITDA is up +6.6% FX, scope of consolidation and excluding hyperinflation in Venezuela and +3.2% on reported figures. The EBITDA margin improved +20bp to 7.1%. Profitability improved in North America and was stable in Europe (combined c. 70% of EBITDA), however, it deteriorated in LatAm, Africa and Australia. The group highlighted the strong performance in North America with higher volumes (driven by cheese). LatAm remains impacted by reorganisational changes and the difficult macro environment (Brazil, Venezuela). The performance in Africa was also impacted by an unfavourable macro environment (Zambia, Mozambique). Australia was impacted by reorganisational changes. Net profit for the period was down 45%, on the back of a decrease in income from litigation settlements and lower dividends from investments. For FY17, the group expects net revenue and EBITDA to increase by about 4%, at constant exchange rates and excluding the Venezuelan subsidiary.
Minority shareholders will try to squeeze more out of Lactalis
29 Dec 16
Two days after Lactalis’s buy-out offer, Parmalat’s share price holds above €2.95. It seems to us that some minority shareholders will try to squeeze more out of Lactalis, as the latter company said it wants to delist the stock. Lactalis is known for being reluctant of making its business public. Amber Capital (which owns 2.8% shares) said it is waiting for at least €4.00 per share. Pending litigation issues (namely with Citibank challenging the damage awards of $431m) make this price quite challenging. Nevertheless, it is not excluded that Lactalis could sweeten its offer.
9M: profitability improves but the outlook remains subdued
14 Nov 16
9M update: revenues are up +2.4% (at constant FX, scope of consolidation and excluding Venezuelan hyperinflation) and -2.4% on reported figures. The EBITDA margin improved by 20bp to 6.8% on a yoy basis but also on a qoq basis (+210bp). By region and at constant FX and scope of consolidation, revenue for Europe was down 0.9% whereas other geographies recorded improved sales (notably LatAm +7.5% and Africa +9.2%).
Q2 looks better than Q1
01 Aug 16
Parmalat released its H1 update. Sales grew +2.3% organically and +1% on reported figures. The EBITDA margin was flat yoy, arriving at 5.7% in H1 (+40bp in Q2). By region and at constant FX and scope of consolidation, revenue was flat for Europe (-0.5% in H1) with a 30bp improvement in margins. In North America, sales were up +2.2%, whereas the margin expanded to 9.8% (+160bp). LatAm was up +13.5 on favourable comps (very weak results in H1 last year). In Africa, sales were up +4.7% but the EBITDA contracted by 17%. Australia was flattish in both sales and margin terms. Net profit for period was up to €45.4m, mainly on lower financial expenses. Full-year guidance was maintained.
Boring FY outlook
11 Mar 16
Parmalat reported its FY results. Revenue was up 15.7% (+6% in Q4) on reported figures and +8.8% on constant scope of consolidation, constant FX and excluding hyperinflation in Venezuela. EBITDA rose +1.1% (-5.8% in Q4), +22.1% on an underlying basis excluding hyperinflation in Venezuela. The EBITDA margin was down 100bp (to 6.9%), impacted by hyperinflation in Venezuela. Net profit was down 28%. The proposed dividend is €0.017. For FY16, the company expects to deliver +5% in net sales and +10% in EBITDA at constant FX, scope consolidation and excluding the effect of hyperinflation in Venezuela.
Eyeing Up Opportunity
24 Mar 17
Produce Investment’s (PIL LN, BUY, T/P 210p) interim profits were well beneath inferred market expectations as delays in the recovery of ex-farm potato prices coincided with unusual costs associated with the company’s implementation of a new ERP system. Interim EBIT fell to £0.2m from £3.4m last year.
N+1 Singer - Morning Song 28-03-2017
28 Mar 17
A G Barr (BAG LN) Share buybacks the main news around FY17 finals | Churchill China (CHH LN) An excellent set of 2016 results and more upgrades | Ergomed (ERGO LN) FY results show strong Services growth; Phase III Zoptrex® data ahead | Instem (INS LN) Investment to accelerate growth trajectory | Severfield (SFR LN) Strong H2 drives upgrades; CEO temporarily steps down due to ill health | Summit Therapeutics (SUMM LN) Strengthening the data package: planned extension of PhaseOut DMD | T. Clarke (CTO LN) Strong conclusion to FY16, record order book
Panmure Morning Note 30-03-2017
30 Mar 17
FY16 PBT of £33.2m has come in towards the top end of the £32.2m-£33.5m range for consensus forecasts which had only very recently been modestly nudged up post the FY16 pre-close trading statement on January 12th. However, we believe the stockmarket will particularly welcome the significantly better than expected cash generation driving a robust net cash position of £32.3m (well ahead of our expectations of £22m) and a full year dividend growth of +17.1% to 17.1p (substantially ahead of our forecasted 15.6p). The medium-term outlook remains positive, with HFG expecting further growth aided by continued focus on NPD and range extensions, whilst HFG now has visibility on strong profit growth with the new Portuguese j/v coming through in the short term and the planned Australian factory longer term. In brief, these strong FY16 results demonstrate HFG is in excellent shape operationally, strategically and financially with the firepower to simultaneously fund additional investment options and maintain an ongoing, attractive progressive dividend policy. We maintain our BUY.
Small Cap Breakfast
23 Mar 17
K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march.
Northampton site visit – well heeled scope for growth
29 Mar 17
Greencore’s (GNC LN, BUY, T/P 310p) 28th March 2017 analyst/investor day – its first to Northampton for five years – delivered a number of positive messages. While there was no trading update, it is clear that momentum in UK Food to Go remains strong and that the site – dedicated to M&S – benefits from continuous expansion and improvement. Greencore remains UK market leader in sandwiches with 45% total share and 59% grocery share.