Brick Brewing Co Ltd reports 42.6% CAPEX growth and 3.5% Revenue growth
07.04.2016 • About Brick Brewing Co Ltd (
$BRB) • By InTwits
Brick Brewing Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Brick Brewing Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.4%. At the same time it's in pair with industry average of 6.6%.
- CAPEX is quite volatile: 0.55 in FY2016, 0.29 in FY2015, 0.12 in FY2014, 1.4 in FY2013, 1.2 in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Brick Brewing Co Ltd ($BRB) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 34.078 | 35.295 | 37.674 | 36.333 | 37.610 | 3.5% |
| Gross Profit | 7.987 | 8.621 | 9.816 | 10.197 | 10.534 | 3.3% |
| SG&A | | 6.971 | 7.771 | 7.564 | 7.367 | -2.6% |
| EBITDA | 3.782 | 3.822 | 4.414 | 5.704 | 5.715 | 0.2% |
| Net Income | 0.657 | 0.351 | 0.525 | 1.395 | 1.594 | 14.3% |
Balance Sheet
|
|---|
| Cash | 0.000 | 0.000 | 0.000 | 0.595 | 0.394 | -33.8% |
| Short Term Debt | 3.505 | 3.966 | 3.251 | 1.670 | 1.946 | 16.5% |
| Long Term Debt | 5.890 | 6.079 | 4.265 | 3.910 | 6.072 | 55.3% |
Cash flow
|
|---|
| Capex | 1.780 | 3.917 | 2.983 | 1.968 | 2.806 | 42.6% |
Ratios
|
|---|
| Revenue growth | 13.2% | 3.6% | 6.7% | -3.6% | 3.5% | |
| EBITDA growth | -12.4% | 1.1% | 15.5% | 29.2% | 0.2% | |
| Gross Margin | 23.4% | 24.4% | 26.1% | 28.1% | 28.0% | -0.1% |
| EBITDA Margin | 11.1% | 10.8% | 11.7% | 15.7% | 15.2% | -0.5% |
| Net Income Margin | 1.9% | 1.0% | 1.4% | 3.8% | 4.2% | 0.4% |
| SG&A, % of revenue | | 19.8% | 20.6% | 20.8% | 19.6% | -1.2% |
| CAPEX, % of revenue | 5.2% | 11.1% | 7.9% | 5.4% | 7.5% | 2.0% |
| ROIC | 4.6% | 3.6% | 3.8% | 6.8% | 6.8% | 0.0% |
| ROE | 2.4% | 1.2% | 1.7% | 4.2% | 4.6% | 0.4% |
| Net Debt/EBITDA | 2.5x | 2.6x | 1.7x | 0.9x | 1.3x | 0.5x |
Brick Brewing Co Ltd ($BRB) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 8 | 11 | 10 | 9 | 2.2% | 6.0% | 6.1% | -0.9% |
| EBITDA | 1 | 2 | 2 | 2 | 40.1% | 3.6% | -7.7% | -9.1% |
| Net Income | 0 | 1 | 0 | 0 | | 30.2% | -19.3% | -10.1% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | | -85.5% | -33.8% |
| Short Term Debt | 2 | 3 | 2 | 2 | -65.9% | -26.1% | -1.6% | 16.5% |
| Long Term Debt | 6 | 6 | 6 | 6 | 59.6% | 90.7% | 61.4% | 55.3% |
Ratios
|
|---|
| Gross Margin | 27.1% | 28.1% | 25.7% | 31.1% | 5.4% | -3.3% | -0.8% | 0.1% |
| EBITDA Margin | 10.9% | 14.7% | 16.6% | 17.9% | 3.0% | -0.3% | -2.5% | -1.6% |
| Net Income Margin | 0.4% | 5.3% | 5.0% | 5.4% | 3.1% | 1.0% | -1.6% | -0.6% |
Revenue and profitability
The company's Revenue increased on 3.5%. Revenue growth showed slow down in FY16Q4 - it was -0.9% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.83 pp from 1.0% to 1.9% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue decreased slightly on 1.2 pp from 20.8% to 19.6% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 7.5%. CAPEX/Revenue decreased on 3.6 pp from 11.1% in FY2013 to 7.5% in FY2016. It's average level of CAPEX/Revenue for the last three years was 6.9%.
Return on investment
The company operates at low ROIC (6.80%) and ROE (4.56%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 1.4x. Net Debt / EBITDA jumped on 0.5x from 0.9x to 1.3x in FY2016. Debt surged on 43.7% while cash dropped on 33.8%.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Brick Brewing Co Ltd 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Medicure Inc ($MPH) | 32.2% | -45.7% | 94.1% | 337.2% | |
| CRH Medical Corp ($CRH) | 23.7% | 12.5% | 56.0% | 284.2% | |
| Concordia Healthcare Corp ($CXR) | | | 159.5% | 275.7% | |
| Nobilis Health Corp ($NHC) | 45.3% | 49.0% | 169.9% | 172.8% | |
| Nuvo Research Inc ($NRI) | 47.3% | -25.3% | -29.1% | 57.0% | |
| |
|---|
| Median (62 companies) | 10.6% | 9.1% | 14.5% | 15.7% | |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | 99.5% | 98.3% | 92.7% | |
| Medicure Inc ($MPH) | 77.7% | 74.4% | 82.8% | 89.8% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 88.7% | 88.4% | 88.0% | 89.1% | |
| Information Services Corp ($ISV) | 77.5% | 80.4% | 80.9% | 87.6% | |
| Biosyent Inc ($RX) | 79.3% | 79.2% | 78.1% | 78.7% | |
| |
|---|
| Median (52 companies) | 40.9% | 39.2% | 39.1% | 36.1% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($CRH) | 21.0% | 24.5% | 29.1% | 44.1% | |
| Ceapro Inc ($CZO) | -2.6% | 9.1% | 23.4% | 41.9% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 30.6% | 27.8% | 45.6% | 39.8% | |
| Concordia Healthcare Corp ($CXR) | | 43.7% | 37.0% | 39.8% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.8% | 36.3% | 36.4% | 39.7% | |
| |
|---|
| Median (61 companies) | 7.4% | 9.0% | 10.4% | 8.5% | |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Feronia Inc/Canada ($FRN) | 191.4% | 117.4% | 42.4% | 81.0% | |
| Ceapro Inc ($CZO) | 3.9% | 35.3% | 52.0% | 39.4% | |
| ProMetic Life Sciences Inc ($PLI) | 2.1% | 33.6% | 34.6% | 23.3% | |
| EnerCare Inc ($ECI) | 25.7% | 26.5% | 23.6% | 20.7% | |
| BrightPath Early Learning Inc ($BPE) | 36.5% | 4.3% | 6.9% | 19.7% | |
| |
|---|
| Median (61 companies) | 3.1% | 2.7% | 2.7% | 2.3% | |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Medicure Inc ($MPH) | | -127.1% | | 129.4% | |
| Response Biomedical Corp ($RBM) | -158.5% | | | 52.0% | |
| Ceapro Inc ($CZO) | -33.5% | 15.5% | 43.5% | 50.4% | |
| Biosyent Inc ($RX) | 71.7% | 62.4% | 62.9% | 48.2% | |
| Information Services Corp ($ISV) | 71.8% | 72.8% | 58.9% | 38.1% | |
| |
|---|
| Median (62 companies) | 7.3% | 7.1% | 7.3% | 5.2% | |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Noble Iron Inc ($NIR) | 25.5x | 12.9x | 227.3x | 244.1x | |
| Family Memorials Inc ($FAM) | | | 15.2x | 84.3x | |
| Concordia Healthcare Corp ($CXR) | | -1.3x | 5.6x | 20.2x | |
| SunOpta Inc ($SOY) | 2.9x | 3.5x | 1.3x | 16.9x | |
| Centric Health Corp ($CHH) | 5.6x | 10.2x | 11.2x | 15.6x | |
| |
|---|
| Median (49 companies) | 3.1x | 2.3x | 3.3x | 2.8x | |
|---|
