The interim management report of Deodato shows sales revenues of € 3.03 million in 1H25A, marking a significant contraction (-34.2%) compared to the € 4.61 million recorded as of June 30th, 2024. EBITDA for the period ended June 30th, 2025 was negative at € 0.62 million, worsening from € 0.40 million in the first half of 2024, corresponding to a -256.5% change. The EBITDA margin for the first half of 2025 stood at -17.1%, sharply down from 7.7% in the same period of 2024. As of June 30th, 2025, EBIT—after amortization and depreciation of € 0.18 million—was negative at € 0.80 million (€ 0.21 million in 1H24A), with an EBIT margin of -22.0% compared to 4.0% in 1H24A. Net income amounted to -€ 0.55 million, deteriorating from € 0.17 million achieved in the first half of 2024.
In light of the results published in the annual report for FY24A, we have revised our estimates for both the current year and the upcoming years. Specifically, we estimate FY25E revenues of € 8.20 million and EBITDA of € 0.55 million, corresponding to a 6.2% margin. For the following years, we expect revenues to rise to € 10.50 million in FY27E (CAGR 24A–27E: 5.8%), with EBITDA reaching € 1.05 million (corresponding to a 9.4% margin), up from € 0.61 million in FY24A (corresponding to an EBITDA margin of 6.4%). At the balance sheet level, we estimate a net financial position of € 0.61 million in debt for FY27E. We conducted the equity valuation of Deodato.Gallery using the DCF methodology (which, for prudential purposes, includes a specific risk of 2.5% in the WACC calculation). The resulting average equity value is approximately € 12.6 million. The target price is € 0.40, with a BUY rating and MEDIUM risk. |
