Village Farms International Inc EBITDA jumped on 46.0% in 2015 and EBITDA Margin increased on 2.4 pp from 6.0% to 8.4%
22.03.2016 • About Village Farms International Inc (
$VFF) • By InTwits
Village Farms International Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 8.4% in 2015, 6.0% in 2014, 7.8% in 2013, -6.5% in 2012, 9.4% in 2011
- Village Farms International Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.2%. At the same time it's in pair with industry average of 8.4%.
- CAPEX is quite volatile: 2.1 in 2015, 8.8 in 2014, 4.6 in 2013, 13.4 in 2012, 40.6 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Village Farms International Inc ($VFF) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 164.4 | 133.9 | 137.6 | 136.6 | 141.9 | 3.9% |
| Gross Profit | 23.8 | 8.0 | 18.3 | 13.9 | 13.8 | -0.9% |
| SG&A | | 14.5 | 12.9 | 13.4 | 12.0 | -10.0% |
| EBITDA | 15.4 | -8.7 | 10.8 | 8.2 | 11.9 | 46.0% |
| Net Income | 5.8 | 7.9 | 10.5 | -0.1 | 2.1 | -2,057.0% |
Balance Sheet
|
|---|
| Cash | 2.9 | 2.8 | 18.7 | 6.3 | 5.0 | -21.8% |
| Short Term Debt | 4.3 | 3.4 | 4.2 | 4.4 | 4.4 | -0.6% |
| Long Term Debt | 65.5 | 55.0 | 50.8 | 49.0 | 44.4 | -9.3% |
Cash flow
|
|---|
| Capex | 40.6 | 13.4 | 4.6 | 8.8 | 2.1 | -76.4% |
Ratios
|
|---|
| Revenue growth | 13.6% | -18.6% | 2.8% | -0.7% | 3.9% | |
| EBITDA growth | 32.7% | -156.2% | -224.7% | -24.4% | 46.0% | |
| Gross Margin | 14.5% | 6.0% | 13.3% | 10.2% | 9.7% | -0.5% |
| EBITDA Margin | 9.4% | -6.5% | 7.8% | 6.0% | 8.4% | 2.4% |
| Net Income Margin | 3.5% | 5.9% | 7.6% | -0.1% | 1.5% | 1.6% |
| SG&A, % of revenue | | 10.9% | 9.4% | 9.8% | 8.5% | -1.3% |
| CAPEX, % of revenue | 24.7% | 10.0% | 3.4% | 6.4% | 1.5% | -5.0% |
| ROIC | 9.2% | -14.0% | 2.8% | 0.2% | 3.0% | 2.8% |
| ROE | 14.8% | 17.0% | 18.8% | -0.2% | 3.4% | 3.6% |
| Net Debt/EBITDA | 4.3x | | 3.4x | 5.8x | 3.7x | -2.1x |
Revenue and profitability
The company's Revenue increased on 3.9% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 65.9 pp from 50.0% to -15.9% in FY2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue decreased slightly on 1.3 pp from 9.8% to 8.5% in 2015.
Net Income marign increased slightly on 1.6 pp from -0.078% to 1.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Village Farms International Inc had CAPEX/Revenue of 1.5%. Village Farms International Inc showed decline in CAPEX/Revenue of 8.6 pp from 10.0% in 2012 to 1.5% in 2015. It's average level of CAPEX/Revenue for the last three years was 3.7%.
Return on investment
The company operates at low ROIC (3.02%) and ROE (3.38%). ROIC increased on 2.8 pp from 0.22% to 3.0% in 2015. ROE increased on 3.6 pp from -0.18% to 3.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.7x and Debt / EBITDA is 4.1x. Net Debt / EBITDA dropped on 2.1x from 5.8x to 3.7x in 2015. Debt decreased on 8.6% in 2015 while cash dropped on 21.8% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Village Farms International Inc benchmarking against other companies in Consumer, Non-cyclical industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Theratechnologies Inc ($TH) | | -9.1% | -44.3% | -10.9% | 346.4% |
| CRH Medical Corp ($CRH) | | 23.7% | 12.5% | 56.0% | 284.2% |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| Nobilis Health Corp ($NHC) | | 45.3% | 49.0% | 169.9% | 172.8% |
| Merus Labs International Inc ($MSL) | | | 172.4% | -7.9% | 87.2% |
| |
|---|
| Median (70 companies) | 20.5% | 9.7% | 6.7% | 13.2% | 11.9% |
|---|
| Village Farms International Inc ($VFF) | | -18.6% | 2.8% | -0.7% | 3.9% |
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% | 92.7% |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | 62.5% |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 35.6% | 38.6% | 36.2% | 35.7% | 36.1% |
|---|
| Village Farms International Inc ($VFF) | 14.5% | 6.0% | 13.3% | 10.2% | 9.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| CRH Medical Corp ($CRH) | 22.1% | 21.0% | 24.5% | 29.1% | 44.1% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | 39.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.9% | 36.8% | 36.3% | 36.4% | 39.7% |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | 39.3% |
| |
|---|
| Median (69 companies) | 7.5% | 8.5% | 9.0% | 11.0% | 10.9% |
|---|
| Village Farms International Inc ($VFF) | 9.4% | -6.5% | 7.8% | 6.0% | 8.4% |
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% |
| Westbond Enterprises Corp ($WBE) | 3.5% | 7.6% | 2.4% | 4.7% | 39.5% |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| ProMetic Life Sciences Inc ($PLI) | | 2.1% | 33.6% | 34.6% | 23.3% |
| |
|---|
| Median (69 companies) | 2.3% | 2.6% | 2.4% | 2.5% | 2.5% |
|---|
| Village Farms International Inc ($VFF) | 24.7% | 10.0% | 3.4% | 6.4% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Response Biomedical Corp ($RBM) | -75.0% | -158.5% | | | 52.0% |
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | 48.2% |
| Immunotec Inc ($IMM) | -11.5% | 1.8% | 8.8% | -10.5% | 40.8% |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | 38.1% |
| Medical Facilities Corp ($DR) | 41.0% | 36.1% | 39.5% | 26.5% | 28.5% |
| |
|---|
| Median (70 companies) | 7.0% | 7.1% | 6.9% | 7.3% | 7.5% |
|---|
| Village Farms International Inc ($VFF) | 9.2% | -14.0% | 2.8% | 0.2% | 3.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CIBT Education Group Inc ($MBA) | | -7.0x | -0.3x | | 18.4x |
| SunOpta Inc ($SOY) | 2.9x | 2.9x | 3.5x | 1.3x | 16.9x |
| Centric Health Corp ($CHH) | 10.3x | 5.6x | 10.2x | 11.2x | 15.6x |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| Sienna Senior Living Inc ($SIA) | 10.6x | 9.5x | 11.8x | 9.2x | 9.1x |
| |
|---|
| Median (60 companies) | 1.8x | 2.6x | 2.2x | 2.6x | 1.6x |
|---|
| Village Farms International Inc ($VFF) | 4.3x | | 3.4x | 5.8x | 3.7x |
