Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on PARMALAT SPA. We currently have 5 research reports from 1 professional analysts.
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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.
Q3 update: better underlying performance but hyperinflation in Venezuela weighs on profitability
13 Nov 15
Parmalat released its Q3 update. Net sales at constant currency and scope of consolidation were up +9.3% (vs. 6% in H1) and +31.8% on reported figures (FX -2.2%, scope of consolidation +24.6%, hyperinflation in Venezuela +3.3%). The EBITDA progressed by c. +44% on a constant basis and +25% on reported figures. On a constant basis, all regions except Latin America increased their EBITDA margin in Q3. On reported figures, the Q3 EBITDA margin remains down 50bp yoy due to adverse FX effect as well as hyperinflation in Venezuela. The group confirmed its FY guidance: c. 10% growth for net revenue and about 6% for EBITDA at constant FX and including the contribution of new acquisitions.
31 Jul 15
Parmalat released its H1 update. Revenues increased by 13.2% (+12.59% in Q2), EBITDA dropped by 8.1% whereas the EBITDA margin was down by 130bp (-50bp in Q2). Revenues by product: Milk +10%, Fruit beverages +9%, Cheese and other fresh products +15.5%, Other products (includes the hyperinflation in Venezuela) +31.1%. In terms of profitability, the EBITDA margin by product stood at: -40bp for Milk, -770bp for Fruit beverages, +150bp for Cheese and other fresh products. EBITDA for Other products was hardly impacted by hyperinflation in Venezuela and stood at €-24.7m in H1. Profit for the period was cut by half (€38.5m vs. €90m yoy). Around 50% of the drop in profit is linked to hyperinflation in Venezuela. The EPS stood at €0.0205 vs €0.0487.
Using their loaf
30 Nov 16
Finsbury Foods has been transformed by a series of acquisitions that has contributed to revenue and earnings nearly doubling over the last three years. Record levels of capital investment continue to improve the Group’s competitive position, whilst exposure to growth segments of the food market is helping likefor-likes. Profit growth is expected to slow in the current year in the absence of acquisitions but underlying trading remains resilient despite some cost headwinds, whilst debt reduction is accelerating. The rating is undemanding and the recent share price weakness has created a buying opportunity.
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*.
Transformational deal with CDC
04 Aug 16
Zambeef has concluded a major capital raising exercise with the UK’s Developmental Financial Investor (DFI), The Commonwealth Development Corporation (CDC). With US$65m raised through the issuance of ordinary and preference shares, Zambeef is now able to purchase RCL's stake in ZamChick and ZamHatch for cash and pay down a material portion of debt, releasing significant free cash flow from the business. We believe this could be the trigger that allows the shares to re-rate and achieve our target price of 15p (undiluted) or 22p (diluted).