Cott Corp reports 156% EBITDA growth and 5.0 pp EBITDA Margin growth from 6.0% to 11.0%
18.02.2016 • About Cott Corp (
$BCB) • By InTwits
Cott Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cott Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's in pair with industry average of 88.7%.
- CAPEX is quite volatile: 111 in FY2015, 46.7 in FY2014, 55.6 in FY2013, 69.7 in FY2012, 48.8 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.0%
- It operates with medium-size leverage: Net Debt/EBITDA is 4.9x while industry average is 5.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cott Corp ($BCB) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,335 | 2,251 | 2,094 | 2,103 | 2,944 | 40.0% |
| Gross Profit | 277 | 289 | 252 | 277 | 895 | 223.9% |
| SG&A | 173 | 178 | 157 | 252 | 766 | 203.8% |
| EBITDA | 196 | 207 | 189 | 126 | 323 | 155.7% |
| Net Income | 38 | 48 | 17 | 11 | 15 | 34.3% |
Balance Sheet
|
|---|
| Cash | 101 | 179 | 47 | 86 | 77 | -10.6% |
| Short Term Debt | 3 | 2 | 55 | 233 | 125 | -46.2% |
| Long Term Debt | 602 | 602 | 404 | 1,541 | 1,525 | -1.0% |
Cash flow
|
|---|
| Capex | 49 | 70 | 56 | 47 | 111 | 137.3% |
Ratios
|
|---|
| Revenue growth | 29.5% | -3.6% | -7.0% | 0.4% | 40.0% | |
| EBITDA growth | 13.3% | 5.8% | -8.7% | -33.3% | 155.7% | |
| Gross Margin | 11.8% | 12.9% | 12.0% | 13.1% | 30.4% | 17.3% |
| EBITDA Margin | 8.4% | 9.2% | 9.0% | 6.0% | 11.0% | 5.0% |
| Net Income Margin | 1.6% | 2.1% | 0.8% | 0.5% | 0.5% | -0.0% |
| SG&A, % of revenue | 7.4% | 7.9% | 7.5% | 12.0% | 26.0% | 14.0% |
| CAPEX, % of revenue | 2.1% | 3.1% | 2.7% | 2.2% | 3.8% | 1.5% |
| ROIC | 8.3% | 8.9% | 7.5% | 0.9% | 4.0% | 3.2% |
| ROE | 7.0% | 8.2% | 2.8% | 1.8% | -0.6% | -2.3% |
| Net Debt/EBITDA | 2.6x | 2.0x | 2.2x | 13.4x | 4.9x | -8.5x |
Revenue and profitability
Cott Corp's Revenue jumped on 40.0% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.4 pp from 71.7% to 65.4% in 2015.
Gross Margin surged on 17.3 pp from 13.1% to 30.4% in FY2015. SG&A as a % of Revenue jumped on 14.0 pp from 12.0% to 26.0% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Cott Corp's CAPEX/Revenue was 3.8% in FY2015. Cott Corp's CAPEX/Revenue increased slightly on 0.67 pp from 3.1% in FY2012 to 3.8% in FY2015. Average CAPEX/Revenue for the last three years was 2.9%.
Return on investment
The company operates at low but positive ROIC (4.01%) and negative ROE (-0.58%). ROIC increased on 3.2 pp from 0.85% to 4.0% in FY2015. ROE decreased on 2.3 pp from 1.8% to -0.58% in FY2015.
Leverage (Debt)
Debt level is 4.9x Net Debt / EBITDA and 5.1x Debt / EBITDA. Net Debt / EBITDA dropped on 8.5x from 13.4x to 4.9x in FY2015. Debt decreased on 7.0% in FY2015 while cash dropped on 10.6% in FY2015.
Management team
Jerry Stephen Gary Fowden is a the company's CEO. Jerry Stephen Gary Fowden is a founder and has spent 9 years at the company. The company's CFO is Jay Wells. Jay Wells has 6 years tenure at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Cott Corp 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% | |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| Family Memorials Inc ($FAM) | -13.6% | 54.7% | 22.9% | 245.3% | |
| Nobilis Health Corp ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 14.3% | 9.3% | 6.7% | 13.2% | 6.3% |
|---|
| Cott Corp ($BCB) | | -3.6% | -7.0% | 0.4% | 40.0% |
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 ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 35.5% | 38.6% | 36.2% | 35.7% | 36.9% |
|---|
| Cott Corp ($BCB) | 11.8% | 12.9% | 12.0% | 13.1% | 30.4% |
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% | 61.5% |
| 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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 7.7% | 7.4% | 8.7% | 11.0% | 7.0% |
|---|
| Cott Corp ($BCB) | 8.4% | 9.2% | 9.0% | 6.0% | 11.0% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.6% | 2.4% | 2.6% | 2.2% |
|---|
| Cott Corp ($BCB) | 2.1% | 3.1% | 2.7% | 2.2% | 3.8% |
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 ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | -12.4% |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 7.4% | 6.3% | 6.7% | 7.3% | 8.0% |
|---|
| Cott Corp ($BCB) | 8.3% | 8.9% | 7.5% | 0.9% | 4.0% |
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 ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| Centric Health Corp ($CHH) | 10.3x | 5.6x | 10.2x | 11.2x | |
| |
|---|
| Median (70 companies) | 1.8x | 2.8x | 2.2x | 2.6x | 1.4x |
|---|
| Cott Corp ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | 4.9x |
