Positive growth trend continues, with increased orders in the first nine months of 2022
Sector: Producer Manufacturing
1H22 sales reached Euro 27.4 m, with a double-digit marginality. Clabo SpA, a worldwide leading player in the design and production of high-endrefrigerated showcases for the retail food industry with particular focus on the ice-cream,pastry & bakery and convenience store segments, recently reported solid and growing 1H22 results. The Company delivered strong sales at Euro 27.4 m, up 19,7% YoY, thanks to strategic choices that enabled the Company to defend itself against tensions in the logistics market and inflation trends.
The BPG (pastry, bar ice-cream shop) segment stood at Euro 15.5 m., higher than 1H21 (+8.2%); the current scenario confirms the recovery of the Ho.Re.Ca. market and the strong growth of the food retail channel driven by sales in North America, standing at Euro 11.8 m and marking +39.2% vs 1H21. Also in view of the excellent performance of orders, which in August showed a progressive increase of 15% over the previous year, Clabo is confident of achieving the previously communicated year-end revenue target of Euro 52-55 m.
EBITDA came in at Euro 3.3 m, slightly down by 12% from Euro 3.7 m reached last year, including the extraordinary government grant 'PPP' in the amount of Euro 0.84 m, equal to 10.8% of total revenues. The group was able to maintain a good level of marginality despite the sharp increase in the purchase prices of materials, which caused an increase in their incidence on Total Revenues of almost 5%. The resumption of trade fair events contributed to an increase in service costs, which in absolute terms grew by about one million. Efficiency in the use of labour continued, allowing the Group to decrease the incidence of personnel costs by 1.6% on Total Revenues. Net result amounted to Euro -0.37 m (Euro 0.61 m as at 30 June 2021), after IAS IFRS 16 depreciation and amortization of Euro 2.5 m. Net Financial Position, amounted to Euro 44 m, compared to Euro 41 m as of 31 December 2021, due to the increase in Net Operating Working Capital. The IFRS 16 effect amounts to Euro 0.59 m, mainly due to the effect of the real estate lease contracts of the subsidiary HMC.
Great third quarter 2022. In the first nine months of 2022, the Group is reporting an increase in turnover and orders of 23.9% and 13.3% respectively, compared to the first nine months of 2021. Thanks to a careful management of general costs, to improved conditions on the procurement markets, in terms of availability of materials, and to consolidation of the increases in purchase prices achieved over the past 12 months, that seem to be heading towards a gradual stabilization.
Estimates revision and TP update. Given the above and on the back of 1H22 results, we substantially confirmed our estimates by adjusting our EBITDA forecast so as to further confirm what was already estimated in our Update Note of April 2022. Based on our updated estimates and peers' multiple re-rating (c. -20% since our last report), we updated our target price to Euro 3.48 p.s. (3.83 pr.) providing for an upside on current stock price of 87%. The stock is currently trading at FY22E/23E EV/EBITDA multiples of 3.0x and 2.2x at an average discount of 15% to peers. At our target price the stock would be trading at 11.3x and 9.7x respectively.
Equity Research
UPDATE NOTE 1H22
Euronext Growth Milan
Target Price 3.48 (3.83 pr.)
Price (€ m) 1.85
Market Cap (€ m) 17.58
EV (€ m) 58.05 | |||||
As of 24th October 2022 | |||||
Share Data | |||||
Market | Euronext Growth Milan | ||||
Reuters/Bloomberg | CLA.MI/CLA:IM | ||||
ISIN | IT0005091324 | ||||
N. of Shares | 9,524,494 | ||||
Free Float | 38.41% | ||||
Main Shareholder | Cla.Bo.Fin S.r.l | ||||
Financials | |||||
2021A | 2022E | 2023E | 2024E | ||
Sales | 44.2 | 51.3 | 56.5 | 60.7 | |
YoY % | 30% | 16% | 10% | 7% | |
EBITDA | 6.0 | 6.5 | 7.6 | 10.2 | |
EBITDA % | 12% | 12% | 13% | 16% | |
EBIT | 0.9 | 2.5 | 3.3 | 5.6 | |
EBIT % | 2% | 5% | 6% | 9% | |
Net Income | (0.9) | (0.5) | 0.4 | 2.9 | |
Net Debt | 40.5 | 39.6 | 35.9 | 33.2 | |
Performance | |||
1M | 3M | 6M | |
Absolute % | -8.9 | -14.1 | 79.5 |
Relative (FTSE Italia Growth) | 0.3 | -7.7 | 43.2 |
52-week High/Low (Eu) | 3.3 | / | 1.7 |
Research Department of
E d o ar d o F u m a g a l l i
e . f u m a g a l l i @ i r to p . co m
Tuesday, October 25, 2022 6:00 PM
1
Equity Research | ||||||
UPDATE NOTE 1H22 | ||||||
Euronext Growth Milan | ||||||
KEY FINANCIALS | ||||||
Profit&Loss Statement | 2020A | 2021A | 2022E | 2023E | 2024E | |
Sales | 33.9 | 44.2 | 51.3 | 56.5 | 60.7 | |
Revenues (VoP) | 35.8 | 50.8 | 53.4 | 57.7 | 63.2 | |
EBITDA Adj | (6.5) | 6.0 | 6.5 | 7.6 | 10.2 | |
EBITDA | (6.5) | 6.0 | 6.5 | 7.6 | 10.2 | |
EBIT Adj | (11.4) | 0.9 | 0.0 | 0.0 | 0.0 | |
EBIT | (11.4) | 0.9 | 2.5 | 3.3 | 5.6 | |
Financial Income (charges) | (2.1) | (2.4) | (2.4) | (2.3) | (2.1) | |
Pre-tax profit (loss) | (14.7) | (1.5) | 0.1 | 1.0 | 3.5 | |
Taxes | 4.5 | 0.6 | (0.6) | (0.6) | (0.7) | |
Net profit (loss) | (10.1) | (0.9) | (0.5) | 0.4 | 2.9 | |
Balance Sheet | ||||||
Net working capital (NWC) | 3.8 | 5.8 | 7.9 | 5.8 | 5.9 | |
Net fixed assets | 44.9 | 47.5 | 44.2 | 42.9 | 42.9 | |
M/L Funds | (4.0) | (3.9) | (4.2) | (4.1) | (4.0) | |
Net Capital Employed | 44.7 | 49.3 | 48.0 | 44.6 | 44.8 | |
Net Debt (Cash) | 37.5 | 40.5 | 39.6 | 35.9 | 33.2 | |
Net Equity | 7.2 | 8.9 | 8.3 | 8.7 | 11.6 | |
Cash Flow | ||||||
EBIT | (11.4) | 0.9 | 2.5 | 3.3 | 5.6 | |
D&A | 4.9 | 5.1 | 4.0 | 4.3 | 4.6 | |
Tax | 4.5 | 0.6 | (0.6) | (0.6) | (0.7) | |
Cahnge in M/L Funds | (2.0) | (0.1) | 0.2 | (0.1) | (0.1) | |
Gross Cash Flow | (4.0) | 6.5 | 6.2 | 6.9 | 9.5 | |
Change in NWC | 4.3 | (4.0) | (2.0) | 1.8 | (0.2) | |
Change in other current asset | 2.6 | 2.1 | (0.2) | 0.3 | 0.1 | |
Operating Cash Flow | 2.9 | 4.6 | 4.0 | 9.0 | 9.4 | |
Capex | (4.9) | (7.7) | (0.5) | (3.0) | (4.6) | |
Acquisitions | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Change in other non-current asset | (0.1) | (0.0) | 0.2 | 0.0 | 0.0 | |
Financial Income (charges) | (2.1) | (2.4) | (2.4) | (2.3) | (2.1) | |
Free Cash Flow | (4.1) | (5.5) | 1.3 | 3.7 | 2.7 | |
Dividend | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Change in Equity | (0.9) | 2.6 | 0.0 | (0.0) | 0.0 | |
Change in Net debt (Cash) | (5.0) | (3.0) | 1.3 | 3.7 | 2.7 | |
Check | ||||||
Per Share Data | ||||||
Current Price | €1.85 | |||||
Total shares (mn) | 9.5 | |||||
EPS | (1.11) | (0.16) | (0.06) | 0.04 | 0.30 | |
DPS | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
FCF | (4.12) | (5.55) | 1.33 | 3.73 | 2.69 | |
Pay out ratio | 0% | 0% | 0% | 0% | 0% | |
Ratios | ||||||
EBITDA margin adj | -18.3% | 11.8% | 12.2% | 13.1% | 16.2% | |
EBITDA margin | -18.3% | 11.8% | 12.2% | 13.1% | 16.2% | |
EBIT margin adj | -32.0% | 1.7% | 0.0% | 0.0% | 0.0% | |
EBIT margin | -32.0% | 1.7% | 4.6% | 5.6% | 8.8% | |
Net Debt/Equity (Gearing) | 523.1% | 457.1% | 476.5% | 412.3% | 286.8% | |
Net Debt/EBITDA | -5.74 | 6.74 | 6.10 | 4.75 | 3.24 | |
Interest cover EBIT | -5.58 | 0.36 | 1.02 | 1.44 | 2.70 | |
ROE | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | |
ROCE | -35.7% | 0.5% | 6.3% | 8.6% | 13.9% | |
Free Cash Flow Yield | -221.6% | -298.5% | 71.8% | 200.7% | 144.8% | |
Growth Rates | ||||||
Sales | -31% | 30% | 16% | 10% | 7% | |
Revenues (VoP) | -35% | 42% | 5% | 8% | 10% | |
EBITDA | -203% | 192% | 8% | 16% | 36% | |
EBIT | -756% | 108% | 177% | 33% | 72% |
Source: Group Consolidated Data & PMI Capital Research Estimates
Tuesday, October 25, 2022 6:00 PM
2
Equity Research | |||||||||||||||
UPDATE NOTE 1H22 | |||||||||||||||
Euronext Growth Milan | |||||||||||||||
Key Financials 1H22 | |||||||||||||||
Euro m | 1H22A | 1H21A | 1H20A | 2021A | 2020A | ||||||||||
Sales | 27.4 | 22.8 | 18.5 | 44.2 | 33.9 | ||||||||||
YoY | 20% | 49% | -34% | 30% | -31% | ||||||||||
EBITDA | 3.3 | 3.7 | (3.6) | 6.0 | (6.5) | ||||||||||
% on sales | 12% | 15% | -21% | 12% | -18% | ||||||||||
EBIT | 0.8 | 1.4 | (6.1) | 0.9 | (11.4) | ||||||||||
% on sales | 5% | -35% | 1,7% | -32% | |||||||||||
Pre-tax Result | (0.4) | 0.4 | (7.2) | (1.5) | (14.7) | ||||||||||
Group's Net results | (0.37) | 0.6 | (5.9) | (0.9) | (10.1) | ||||||||||
Net Working Capital | 8.4 | 6.0 | 7.2 | 5.8 | 3.8 | ||||||||||
Fixed net assets | 48.0 | 43.9 | 43.5 | 47.5 | 44.9 | ||||||||||
Funds | (2.8) | (7.0) | (6.7) | (3.9) | (4.0) | ||||||||||
Net Capital Employed | 53.7 | 45.1 | 44.9 | 49.3 | 44.7 | ||||||||||
Net Debt (Cash) | 44.2 | 37.2 | 32.6 | 40.5 | 37.5 | ||||||||||
Group's Equity | 9.5 | 7.9 | 12.3 | 8.9 | 7.2 | ||||||||||
Sources | 53.7 | 45.1 | 44.9 | 49.3 | 44.7 | ||||||||||
Source: Group Data | |||||||||||||||
Estimate revision - Euro m | |||||||||||||||
2021A | 2022E Old | 2022E New | 2023E Old | 2023E New | 2024E | ||||||||||
Sales | 44.2 | 51.3 | 51.3 | 56.5 | 56.5 | 60.7 | |||||||||
yoy | 30% | +16% | +16% | +10% | +10% | +7% | |||||||||
Revenues (VoP) | 50.8 | 53.4 | 53.4 | 57.7 | 57.7 | 63.2 | |||||||||
yoy | 42% | +5% | +5% | +8% | +8% | +10% | |||||||||
EBITDA | 6.0 | 8.7 | 6.5 | 9.6 | 7.6 | 10.2 | |||||||||
yoy | 192% | +44% | +8% | +11% | +16% | +36% | |||||||||
EBIT | 0.9 | 4.6 | 2.5 | 5.3 | 3.3 | 5.6 | |||||||||
yoy | 108% | +420% | +177% | +15% | +33% | +72% | |||||||||
Pre tax profit | (1.5) | 2.4 | 0.05 | 3.3 | 1.0 | 3.5 | |||||||||
Net Profit | (0.9) | 1.8 | (0.5) | 2.7 | 0.4 | 2.9 | |||||||||
2021A | 2022E Old | 2022 New | 2023 Old | 2023 New | 2024E | ||||||||||
Net Working Capital (NWC) | 5.8 | 5.3 | 7.9 | 5.7 | 5.8 | 5.9 | |||||||||
Fixed net assets | 47.5 | 44.2 | 44.2 | 42.9 | 42.9 | 42.9 | |||||||||
Funds | (3.9) | (4.2) | (4.2) | (4.1) | (4.1) | (4.0) | |||||||||
Net Capital Employed | 49.3 | 45.4 | 48.0 | 44.6 | 44.6 | 44.8 | |||||||||
Net Financial Position (Cash) | 40.5 | 34.8 | 39.6 | 31.3 | 35.9 | 33.2 | |||||||||
Total Equity | 8.9 | 10.6 | 8.3 | 13.3 | 8.7 | 11.6 | |||||||||
Sources | 49.3 | 45.4 | 48.0 | 44.6 | 44.6 | 44.8 | |||||||||
Source: Company Data and PMI Capital Research Estimates
Tuesday, October 25, 2022 6:00 PM
3
Equity Research
UPDATE NOTE 1H22
Euronext Growth Milan
INDUSTRY COMPARISON
CLABO Spa (NSP-IT): PMI Capital Research estimates and Factset Data
EGM Sector: average data for listed on EGM included in the Producer Manufacturing sub sector: ATON Green Storage, Clabo, Cofle, Comer Industries, Esautomotion, Fervi, Gel, Gibus, Ilpra, Jonix, Marzocchi Pompe, Nusco, Omer, OSAI Automation System, Racing Force Group, Sciuker Frames, Sebino, Tenax International, Vimi Fasteners
Industry Peers: average data for a selected group industrial peers (see tables above for details)
Euronext Growth Milan: average financial and market data for all the companies listed on EGM, reported price performance data are related to the FTSE Italia Growth Index.
CLA-IT | Producer Manufacturing | XS0072 | ||
Clabo | EGM Sector | Peers Avg | FTSE Italia Growth | |
Key Financials | ||||
Revenues | 44.2 | 94.0 | 403 | 31.5 |
EBITDA | 6.0 | 14.9 | 63 | 4.8 |
EBITDA % | 13.6% | 15.8% | 15.5% | 15.3% |
EBIT | 0.9 | 10.9 | 45 | 1.7 |
EBIT % | 2.0% | 11.6% | 11.2% | 5.3% |
Earnings | 0.9 | 7.1 | 35 | 1.1 |
Earnings % | 2.0% | 7.5% | 8.6% | 3.4% |
Net Debt | 40.5 | 11.6 | 80 | 2.0 |
ND/EBITDA | 6.8 | 0.8 | 1.3 | 0.4 |
FY18-20 Revenues CAGR | -20% | 100% | 24% | 40% |
FY21-23 Revenues CAGR | 13% | 12% | 20% | 23% |
FY18-20 Earnings CAGR | 200% | -7% | -2% | -8% |
FY21-23 Earnings CAGR | 64% | 23% | 15% | 95% |
Market Data | ||||
Market Cap | 17.6 | 87.0 | 451 | 51.5 |
EV | 58.1 | 98.0 | 1,176 | 54.5 |
Free Float | 29.34% | 27.46% | 56.82% | 33.81% |
ADTT YTD (Eu k) | 33,155 | 90,461 | 4,250,589 | 37,350 |
Market Multiples | ||||
EV/Sales 2022 | 1.1 | 1.0 | 1.2 | 1.7 |
EV/Sales 2023 | 1.0 | 0.9 | 1.1 | 1.2 |
EV/EBITDA 2022 | 8.9 | 5.9 | 8.9 | 10.1 |
EV/EBITDA 2023 | 7.6 | 5.0 | 7.6 | 6.9 |
EV/EBIT 2022 | 23.2 | 9.3 | 13.0 | 13.5 |
EV/EBIT 2023 | 17.6 | 7.5 | 10.8 | 10.2 |
P/E 2022 | -116.2 | 16.9 | 16.8 | 22.1 |
P/E 2023 | 145.2 | 11.3 | 14.9 | 17.0 |
Earnings Yield | -0.9% | 5.9% | 5.9% | 4.5% |
Stock Performance | ||||
1D | -2.7% | -0.3% | 1% | 0.3% |
1W | -3.2% | 2.6% | 2% | 3.1% |
1M | -7.7% | -1.6% | 2% | 1.5% |
3M | -16.8% | -6.2% | 1% | -3.3% |
6M | -31.9% | -15.8% | -3% | -11.9% |
YTD | -27.3% | -24.2% | -14% | -21.4% |
1Y | -33.6% | -23.9% | -11% | -19.3% |
Source: FactSet and PMI Capital data as of 24thOctober 2022, Group data and PMI Capital Research estimates for CLABO
Tuesday, October 25, 2022 6:00 PM
4
Equity Research | ||||||||
UPDATE NOTE 1H22 | ||||||||
Euronext Growth Milan | ||||||||
VALUATION UPDATE | ||||||||
Valuation Summary | ||||||||
Method | Weight | Price | Equity Value | |||||
(Eu p.s.) | (Eu m) | |||||||
Multiple analysis EV/EBITDA 22/23 and Peers | 50% | 2.01 | 19.11 | |||||
DCF (WACC 6.6% and g 1.0%) | 50% | 4.96 | 47.26 | |||||
Target Price | 100% | 3.48 | 33.18 | |||||
Source: PMI Capital Research Estimates
Multiples Comparison
Sales | Sales | EBITDA % | NI | ||||||||||||||||||
Companies | Market Cap | Price | YoY | % | |||||||||||||||||
2022E | 22/21 | 2022E | 2022E | ||||||||||||||||||
Carel Industries SpA | 2,010 | 20.10 | 515 | 22% | 20% | 12% | |||||||||||||||
Indel B SpA | 117 | 20.00 | 208 | 12% | 13% | 7% | |||||||||||||||
LU-VE | 459 | 20.65 | 591 | 20% | 13% | 7% | |||||||||||||||
Luxfer Holdings PLC | 442 | 16.13 | 429 | 35% | 16% | 9% | |||||||||||||||
Munters Group AB | 1,357 | 7.36 | 922 | 27% | 13% | 6% | |||||||||||||||
Piovan SpA | 408 | 7.61 | 479 | 69% | 12% | 6% | |||||||||||||||
Average | 799 | 15 | 524 | 31% | 14% | 8% | |||||||||||||||
CLABO | 17.58 | 1.8 | 51,318 | 16% | 12% | -1% | |||||||||||||||
Source: FactSet data as of 24th October 2022 and PMI Capital Research Estimates for CLABO | |||||||||||||||||||||
Companies | EV/EBITDA | ||||||||||||||||||||
22E | 23E | 24E | |||||||||||||||||||
Carel Industries SpA | 20.1 | 17.6 | n.a. | ||||||||||||||||||
Indel B SpA | 5.4 | 5.0 | 4.0 | ||||||||||||||||||
LU-VE | 8.2 | 7.8 | 7.1 | ||||||||||||||||||
Luxfer Holdings PLC | 8.1 | 7.6 | n.a. | ||||||||||||||||||
Munters Group AB | 14.1 | 10.2 | 8.2 | ||||||||||||||||||
Piovan SpA | 8.6 | 7.7 | 7.2 | ||||||||||||||||||
Average | 10.7 | 9.3 | 6.6 | ||||||||||||||||||
CLABO | 8.9 | 7.7 | 5.7 | ||||||||||||||||||
Premium/Discount to Peers | -17% | -17% | -15% | ||||||||||||||||||
Source: FactSet data as of 24th October 2022 and PMI Capital Research Estimates for CLABO
Tuesday, October 25, 2022 6:00 PM
5
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CLABO S.p.A. published this content on 26 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2022 09:27:03 UTC.