In 1H26A, Value of Production stood at € 3.96 million, up 9.5% compared to € 3.62 million in 1H25A, supported by the commercial recovery, partially offset by the reduction in inventories. Revenues from sales and services increased by 28.9%, from € 3.03 million to € 3.91 million, thanks to the recovery in demand and the growth of B2C and B2B activities. EBITDA returned to positive territory at € 0.40 million, compared to € -0.62 million in 1H25A, benefiting from revenue growth and the rationalization of operating costs, with an EBITDA margin of 10.0%, compared to -17.1% in the previous period. EBIT, after depreciation, amortization and write-downs of € 0.18 million, stood at € 0.21 million compared to € -0.80 million in 1H25A, while Net Income returned to positive territory at € 0.11 million compared to € -0.55 million in 1H25A, reflecting the recovery in operating profitability. From a balance sheet perspective, NFP improved to € 0.94 million of debt, compared to € 1.41 million in FY25A, thanks to stronger operating cash generation and the reduction in net working capital.
In light of the results published in the 1H26A interim financial report, we revise our estimates for both the current year and the following years. In particular, for FY26E we confirm Value of Production at € 9.30 million, while increasing our EBITDA estimate to € 0.95 million, with an EBITDA margin of 10.2%. Over the medium term, we expect Value of Production to reach € 11.70 million in FY28E (25A-28E CAGR: 13.1%), with EBITDA of € 1.30 million and a margin of 11.1%, supported by the progressive improvement in operating efficiency and the development of B2B activities. From a balance sheet perspective, we estimate NFP at € 1.31 million of debt in FY26E, progressively declining to € 0.80 million in FY28E, thanks to stronger operating cash generation and the recovery in profitability. We valued Deodato.Gallery’s equity value using the DCF methodology, which prudentially includes a 2.5% specific risk premium in the WACC calculation. This results in an equity value of approximately € 12.4 million. The target price is € 0.40, with a BUY rating and MEDIUM risk. |
