London, UK, 28 May 2021

La Doria (LD): Looking ahead with confidence

La Doria has posted another strong quarter, with revenue and EBITDA growth notwithstanding the strong base. Revenue growth was mainly price-driven, and mostly driven by the UK business. While the outlook for the sector remains favourable, the company continues to expect revenues and volumes to fall during 2021 as consumption gradually returns to normal and following the exceptionally strong performance during FY20. Management expects EBITDA to improve as the benefits of the investment plan start to flow through in full. We leave our estimates unchanged.

Our DCF model indicates a fair value of €20.00 per share (unchanged), or c 15% upside from the current share price. La Doria trades on a P/E of 11.3x FY21e, a c 35% discount to its private-label peer group. On EV/EBITDA it trades at 7.6x FY21e, a c 10% discount, and its dividend is well covered, with a yield of 2.3%. We believe La Doria remains an attractive proposition, given the strength of its market position in the private-label segment. Management remains committed to improving the stability of the business, while continuing to invest to maintain its competitive edge. 

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