Corby Spirit and Wine Ltd Net Income jumped on 24.6% in 2016 and EBITDA Margin increased on 3.9 pp from 26.3% to 30.2%
24.08.2016 • About Corby Spirit and Wine Ltd (
$CSW.A) • By InTwits
Corby Spirit and Wine Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Corby Spirit and Wine Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 24.1%.
- CAPEX is quite volatile: 5.2 in 2016, 22.3 in 2015, 33.7 in 2014, 29.3 in 2013, 97.6 in 2012
- The company has highly profitable business model: ROIC is at 19.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Corby Spirit and Wine Ltd ($CSW.A) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 146.7 | 132.7 | 137.3 | 132.1 | 140.0 | 6.0% |
| Gross Profit | 85.9 | 83.1 | 88.3 | 83.0 | 90.7 | 9.2% |
| SG&A | | | | 55.9 | 55.6 | -0.4% |
| EBITDA | 43.0 | 42.0 | 40.5 | 34.7 | 42.2 | 21.8% |
| Net Income | 46.0 | 27.2 | 25.0 | 20.4 | 25.4 | 24.6% |
Balance Sheet
|
|---|
| Cash | 110.1 | 108.0 | 108.0 | 94.1 | 85.0 | -9.6% |
| 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 | 1.6 | 1.8 | 2.2 | 2.8 | 3.1 | 9.8% |
Ratios
|
|---|
| Revenue growth | -8.0% | -9.5% | 3.4% | -3.8% | 6.0% | |
| EBITDA growth | -12.1% | -2.4% | -3.5% | -14.4% | 21.8% | |
| Gross Margin | 58.5% | 62.6% | 64.3% | 62.9% | 64.8% | 1.9% |
| EBITDA Margin | 29.3% | 31.6% | 29.5% | 26.3% | 30.2% | 3.9% |
| Net Income Margin | 31.4% | 20.5% | 18.2% | 15.5% | 18.2% | 2.7% |
| SG&A, % of revenue | | | | 42.3% | 39.7% | -2.6% |
| CAPEX, % of revenue | 1.1% | 1.4% | 1.6% | 2.1% | 2.2% | 0.1% |
| ROIC | 16.2% | 16.9% | 16.0% | 13.8% | 19.3% | 5.5% |
| ROE | 20.2% | 12.8% | 12.0% | 10.3% | 14.2% | 3.9% |
| Net Debt/EBITDA | -2.6x | -2.6x | -2.7x | -2.7x | -2.0x | 0.7x |
Corby Spirit and Wine Ltd ($CSW.A) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 36 | 38 | 28 | 37 | 4.9% | 0.8% | 4.5% | 14.6% |
| EBITDA | 11 | 10 | 7 | 15 | 24.6% | 5.2% | 39.6% | 25.7% |
| Net Income | 6 | 6 | 4 | 9 | 28.1% | 6.1% | 54.8% | 27.0% |
Balance Sheet
|
|---|
| Cash | 93 | 98 | 76 | 85 | -12.7% | -12.5% | -14.2% | -9.6% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 66.4% | 60.9% | 64.3% | 67.3% | 2.1% | -0.6% | 3.0% | 3.3% |
| EBITDA Margin | 28.9% | 26.3% | 24.8% | 39.5% | 4.6% | 1.1% | 6.2% | 3.5% |
| Net Income Margin | 17.3% | 16.0% | 13.1% | 25.1% | 3.1% | 0.8% | 4.2% | 2.5% |
Revenue and profitability
The company's Revenue increased on 6.0%. Revenue growth showed acceleration in FY16Q4 - it increased 14.6% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.9 pp from 26.3% to 30.2% in FY2016.
Gross Margin increased slightly on 1.9 pp from 62.9% to 64.8% in FY2016. SG&A as a % of Revenue decreased on 2.6 pp from 42.3% to 39.7% in FY2016.
Net Income marign increased on 2.7 pp from 15.5% to 18.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Corby Spirit and Wine Ltd's CAPEX/Revenue was 2.2% in FY2016. CAPEX/Revenue increased slightly on 0.81 pp from 1.4% in FY2013 to 2.2% in FY2016. For the last three years the average CAPEX/Revenue was 2.0%.
Return on investment
The company operates at good ROIC (19.33%) and ROE (14.17%). ROIC increased on 5.5 pp from 13.8% to 19.3% in FY2016. ROE increased on 3.9 pp from 10.3% to 14.2% in FY2016.
Leverage (Debt)
The company has no debt. Cash decreased on 9.6%.
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | | 159.5% | 275.7% | 107.0% |
| Heritage Global Inc ($HGP) | | -37.0% | 76.2% | 11.2% | 80.8% |
| EnerCare Inc ($ECI) | | 8.6% | 21.1% | 55.7% | 76.6% |
| CRH Medical Corp ($CRH) | | 12.5% | 56.0% | 284.2% | 70.2% |
| Nuvo Research Inc ($NRI) | | -25.3% | -29.1% | 57.0% | 31.9% |
| |
|---|
| Median (41 companies) | | 8.6% | 13.8% | 15.2% | 12.8% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | 99.5% | 98.3% | 92.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 88.7% | 88.4% | 88.0% | 89.1% | 88.3% |
| Information Services Corp ($ISV) | 77.5% | 80.4% | 80.9% | 87.6% | 85.1% |
| Biosyent Inc ($RX) | 79.3% | 79.2% | 78.1% | 78.7% | |
| Concordia Healthcare Corp ($CXR) | | 79.4% | 86.0% | 76.1% | 72.9% |
| |
|---|
| Median (35 companies) | 32.5% | 37.1% | 35.7% | 35.7% | 31.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($CRH) | 21.0% | 24.5% | 29.1% | 44.1% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 30.6% | 27.8% | 45.6% | 39.8% | 23.8% |
| Concordia Healthcare Corp ($CXR) | | 43.7% | 37.0% | 39.8% | -92.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.8% | 36.3% | 36.4% | 39.7% | 31.4% |
| EnerCare Inc ($ECI) | 52.8% | 51.0% | 45.5% | 39.3% | 26.6% |
| |
|---|
| Median (44 companies) | 9.2% | 12.4% | 13.4% | 11.8% | 10.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| ProMetic Life Sciences Inc ($PLI) | 2.1% | 33.6% | 34.6% | 23.3% | |
| EnerCare Inc ($ECI) | 25.7% | 26.5% | 23.6% | 20.7% | 15.5% |
| Black Diamond Group Ltd ($BDI) | 61.9% | 27.5% | 31.0% | 17.6% | |
| easyhome Ltd ($EH) | 32.2% | 25.6% | 21.6% | 16.9% | 12.7% |
| K-Bro Linen Inc ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| |
|---|
| Median (43 companies) | 3.1% | 2.7% | 2.3% | 2.4% | 2.1% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Information Services Corp ($ISV) | 71.8% | 72.8% | 58.9% | 38.1% | 27.6% |
| Colliers International Group Inc ($CIG) | 10.5% | 11.2% | 15.2% | 10.9% | 26.1% |
| Nuvo Research Inc ($NRI) | -11.6% | -17.4% | -37.9% | 12.9% | 20.8% |
| International Road Dynamics Inc ($IRD) | 0.9% | 6.7% | 4.4% | 10.6% | 16.5% |
| Premium Brands Holdings Corp ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
| |
|---|
| Median (44 companies) | 8.8% | 8.4% | 8.4% | 6.9% | 8.0% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | -1.3x | 5.6x | 20.2x | |
| SunOpta Inc ($SOY) | 2.9x | 3.5x | 1.3x | 16.9x | 140.8x |
| Centric Health Corp ($CHH) | 5.6x | 10.2x | 11.2x | 15.6x | |
| Sienna Senior Living Inc ($SIA) | 9.5x | 11.8x | 9.2x | 9.1x | 9.1x |
| Valeant Pharmaceuticals International Inc ($VRX) | 9.5x | 10.4x | 4.0x | 7.3x | 12.7x |
| |
|---|
| Median (38 companies) | 2.8x | 2.3x | 3.4x | 2.5x | 2.8x |
|---|
