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Alejandro Estebaranz of True Value presented his investment thesis on Newlat Food (Italy: NWL) at European Investing Summit 2024, held from October 29-31.
Two Years On: Premium members, scroll down for an automated review of how this thesis played out from October 2024 to October 2026.
Thesis Summary
Newlat Food is a consumer goods company with a strong track record of value creation through acquisitions. It is a 60+% family-controlled business.
Over the past five years, it has grown EBITDA and FCF at a rate of over 25%. After the acquisition of Princes UK, the shares trade at ~5x FCF, with debt below 2.5x EBITDA.
Alejandro expects the integration of the Princes business to be an important catalyst for the business. Similar food companies trade at higher valuations.
