Corby Spirit and Wine Ltd reports 18.3% Net Income decline and 3.2 pp EBITDA Margin decline from 29.5% to 26.3%
26.08.2015 • About Corby Spirit and Wine Ltd (
$CSW.A) • By InTwits
Corby Spirit and Wine Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Corby Spirit and Wine Ltd is a company in decline: FY2015 revenue growth was -3.8%, 5 years revenue CAGR was -4.0%
- Corby Spirit and Wine Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's a lot of higher than industry average of 28.7%.
- CAPEX is quite volatile: 22.3 in 2015, 33.7 in 2014, 29.3 in 2013, 97.6 in 2012, 33.1 in 2011
- The company has highly profitable business model: ROIC is at 13.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Corby Spirit and Wine Ltd ($CSW.A) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 159.6 | 146.7 | 132.7 | 137.3 | 132.1 | -3.8% |
| Gross Profit | 89.0 | 85.9 | 83.1 | 88.3 | 83.0 | -6.0% |
| SG&A | | | | | 55.9 | |
| EBITDA | 48.9 | 43.0 | 42.0 | 40.5 | 34.7 | -14.4% |
| Net Income | 28.9 | 46.0 | 27.2 | 25.0 | 20.4 | -18.3% |
Balance Sheet
|
|---|
| Cash | 96.6 | 110.1 | 108.0 | 108.0 | 94.1 | -12.9% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 2.3 | 1.6 | 1.8 | 2.2 | 2.8 | 28.6% |
Ratios
|
|---|
| Revenue growth | -1.6% | -8.0% | -9.5% | 3.4% | -3.8% | |
| EBITDA growth | -0.9% | -12.1% | -2.4% | -3.5% | -14.4% | |
| Gross Margin | 55.8% | 58.5% | 62.6% | 64.3% | 62.9% | -1.5% |
| EBITDA Margin | 30.7% | 29.3% | 31.6% | 29.5% | 26.3% | -3.2% |
| Net Income Margin | 18.1% | 31.4% | 20.5% | 18.2% | 15.5% | -2.7% |
| SG&A, % of revenue | | | | | 42.3% | 42.3% |
| CAPEX, % of revenue | 1.4% | 1.1% | 1.4% | 1.6% | 2.1% | 0.5% |
| ROIC | 17.6% | 16.2% | 16.9% | 16.0% | 13.8% | -2.2% |
| ROE | 12.0% | 20.2% | 12.8% | 12.0% | 10.3% | -1.7% |
| Net Debt/EBITDA | -2.0x | -2.6x | -2.6x | -2.7x | -2.7x | -0.0x |
Revenue and profitability
Corby Spirit and Wine Ltd's Revenue decreased on 3.8% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.2 pp from 29.5% to 26.3% in FY2015.
Gross Margin decreased slightly on 1.5 pp from 64.3% to 62.9% in FY2015.
Net Income marign decreased on 2.7 pp from 18.2% to 15.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.1% in FY2015. Corby Spirit and Wine Ltd showed small growth in CAPEX/Revenue of 1.00 pp from 1.1% in FY2012 to 2.1% in FY2015. Average CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at good ROIC (13.80%) while ROE is low (10.28%). ROIC decreased on 2.2 pp from 16.0% to 13.8% in FY2015. ROE decreased slightly on 1.7 pp from 12.0% to 10.3% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 12.9% in FY2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Corby Spirit and Wine Ltd benchmarking vs. other companies in Consumer, Non-cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | 43.8% | -38.8% | -72.9% | 218,969.1% | |
| Cardiome Pharma Corp ($COM) | -97.7% | -47.6% | 471.7% | 566.0% | |
| Family Memorials Inc ($FAM) | -13.6% | 54.7% | 22.9% | 245.3% | |
| Nobilis Health Corp ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | |
| |
|---|
| Median (85 companies) | 11.8% | 8.7% | 6.9% | 13.2% | 6.6% |
|---|
| Corby Spirit and Wine Ltd ($CSW.A) | | -8.0% | -9.5% | 3.4% | -3.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (73 companies) | 33.7% | 35.8% | 35.5% | 34.6% | 28.1% |
|---|
| Corby Spirit and Wine Ltd ($CSW.A) | 55.8% | 58.5% | 62.6% | 64.3% | 62.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | |
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | |
| Information Services Corp ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (84 companies) | 7.9% | 7.9% | 8.3% | 10.5% | 7.7% |
|---|
| Corby Spirit and Wine Ltd ($CSW.A) | 30.7% | 29.3% | 31.6% | 29.5% | 26.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | |
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | |
| |
|---|
| Median (85 companies) | 2.4% | 2.6% | 2.5% | 2.6% | 5.4% |
|---|
| Corby Spirit and Wine Ltd ($CSW.A) | 1.4% | 1.1% | 1.4% | 1.6% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | |
| Covalon Technologies Ltd ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (85 companies) | 7.4% | 6.7% | 6.7% | 6.9% | 7.5% |
|---|
| Corby Spirit and Wine Ltd ($CSW.A) | 17.6% | 16.2% | 16.9% | 16.0% | 13.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | |
| Family Memorials Inc ($FAM) | | | | 15.2x | |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | |
| Cott Corp ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| |
|---|
| Median (69 companies) | 1.9x | 2.8x | 2.2x | 2.7x | 1.6x |
|---|
| Corby Spirit and Wine Ltd ($CSW.A) | -2.0x | -2.6x | -2.6x | -2.7x | -2.7x |
