Prada SpA CAPEX dropped on 34.2% in 2015 and Revenue decreased slightly on 0.99%
30/03/2015 • About Prada SpA (
$1913) • By InTwits
Prada SpA reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Prada SpA has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.0%. At the same time it's a lot of higher than industry average of 4.0%.
- CAPEX is quite volatile: 362 in FY2015, 549 in FY2014, 350 in FY2013, 249 in FY2012, 188 in FY2011
- The company has highly profitable business model: ROIC is at 21.9%
- It operates with high leverage: Net Debt/EBITDA is -0.2x while industry average is -2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Prada SpA ($1913) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,047 | 2,556 | 3,297 | 3,587 | 3,552 | -1.0% |
| Gross Profit | 1,388 | 1,828 | 2,377 | 2,649 | 2,551 | -3.7% |
| SG&A | 872 | 1,096 | 1,375 | 1,580 | 1,716 | 8.7% |
| EBITDA | 530 | 755 | 1,045 | 1,138 | 950 | -16.5% |
| Net Income | 251 | 432 | 626 | 628 | 451 | -28.2% |
Balance Sheet
|
|---|
| Cash | 97 | 362 | 572 | 568 | 709 | 24.7% |
| Short Term Debt | 199 | 167 | 176 | 62 | 263 | 321.8% |
| Long Term Debt | 306 | 180 | 79 | 208 | 255 | 22.7% |
Cash flow
|
|---|
| Capex | 188 | 249 | 350 | 549 | 362 | -34.2% |
Ratios
|
|---|
| Revenue growth | 31.1% | 24.9% | 29.0% | 8.8% | -1.0% | |
| EBITDA growth | 88.7% | 42.5% | 38.3% | 8.9% | -16.5% | |
| Gross Margin | 67.8% | 71.5% | 72.1% | 73.8% | 71.8% | -2.0% |
| EBITDA Margin | 25.9% | 29.6% | 31.7% | 31.7% | 26.8% | -5.0% |
| Net Income Margin | 12.3% | 16.9% | 19.0% | 17.5% | 12.7% | -4.8% |
| SG&A, % of revenue | 42.6% | 42.9% | 41.7% | 44.0% | 48.3% | 4.3% |
| CAPEX, % of revenue | 9.2% | 9.7% | 10.6% | 15.3% | 10.2% | -5.1% |
| ROIC | 24.6% | 32.1% | 37.4% | 34.0% | 21.9% | -12.0% |
| ROE | 22.3% | 28.5% | 30.2% | 25.1% | 15.8% | -9.2% |
| Net Debt/EBITDA | 0.8x | -0.0x | -0.3x | -0.3x | -0.2x | 0.1x |
Revenue and profitability
The company's Revenue decreased slightly on 0.99% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 2.0 pp from 2.9% to 4.9% in FY2015.
Gross Margin decreased on 2.0 pp from 73.8% to 71.8% in FY2015. SG&A as a % of Revenue increased on 4.3 pp from 44.0% to 48.3% in FY2015.
Net Income marign decreased on 4.8 pp from 17.5% to 12.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Prada SpA's CAPEX/Revenue was 10.2% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 12.0%.
Return on investment
The company operates at high and attractive ROIC (21.94%) while ROE is a bit lower (15.85%). ROIC dropped on 12.0 pp from 34.0% to 21.9% in FY2015. ROE decreased on 9.2 pp from 25.1% to 15.8% in FY2015.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from -0.3x to -0.2x in FY2015. Debt jumped on 91.8% in FY2015 while cash jumped on 24.7% in FY2015.
Management team
The company's CEO is Patrizio Bertelli. Patrizio Bertelli has 4 years tenure at the company.
Appendix 1: Peers in Apparel
Below we provide Prada SpA benchmarking against other companies in Apparel 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 |
|---|
| Ares Asia Ltd ($645) | 60.9% | | | 144.2% | |
| Texhong Textile Group Ltd ($2678) | 25.6% | 6.8% | 12.1% | 27.2% | |
| Win Hanverky Holdings Ltd ($3322) | 11.5% | -7.5% | -0.3% | 21.1% | |
| Symphony Holdings Ltd/Hong Kong ($1223) | 27.3% | -94.0% | 46.8% | 20.4% | |
| L & A International Holdings Ltd/ Hong Kong ($8387) | 33.1% | 27.9% | 7.9% | 20.4% | |
| |
|---|
| Median (43 companies) | 17.5% | 4.1% | 0.5% | 3.3% | |
|---|
| Prada SpA ($1913) | | 24.9% | 29.0% | 8.8% | -1.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Outfitters Holdings Ltd ($1146) | 76.1% | 74.9% | 74.3% | 70.0% | |
| S Culture International Holdings Ltd ($1255) | 62.8% | 64.7% | 63.7% | 62.9% | |
| Crocodile Garments ($122) | 65.5% | 64.7% | 60.7% | 60.4% | |
| Symphony Holdings Ltd/Hong Kong ($1223) | 15.4% | 38.5% | 42.3% | 59.6% | |
| HOSA International Ltd ($2200) | 62.2% | 60.6% | 57.8% | 52.6% | |
| |
|---|
| Median (42 companies) | 22.9% | 22.8% | 22.8% | 22.0% | |
|---|
| Prada SpA ($1913) | 67.8% | 71.5% | 72.1% | 73.8% | 71.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HOSA International Ltd ($2200) | 46.3% | 44.4% | 42.2% | 37.6% | |
| China Lilang Ltd ($1234) | 26.7% | 26.3% | 26.9% | 29.4% | |
| Cabbeen Fashion Ltd ($2030) | 16.0% | 25.0% | 29.7% | 28.4% | |
| Fuguiniao Co Ltd ($1819) | 22.2% | 24.5% | 26.1% | 26.7% | |
| China Outfitters Holdings Ltd ($1146) | 43.9% | 42.0% | 38.2% | 26.5% | |
| |
|---|
| Median (43 companies) | 9.3% | 9.0% | 7.3% | 5.5% | |
|---|
| Prada SpA ($1913) | 25.9% | 29.6% | 31.7% | 31.7% | 26.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 14.9% | 136.9% | 70.3% | 13.5% | |
| Mascotte Holdings Ltd ($136) | 0.4% | 74.2% | 45.0% | 12.2% | |
| Addchance Holdings Ltd ($3344) | 12.2% | 8.6% | 9.3% | 10.9% | |
| Tack Fiori International Group Ltd ($928) | 3.5% | 23.1% | 134.4% | 10.7% | |
| Shenzhou International Group Holdings Ltd ($2313) | 4.7% | 7.3% | 7.9% | 10.2% | |
| |
|---|
| Median (43 companies) | 1.9% | 2.1% | 3.0% | 2.0% | |
|---|
| Prada SpA ($1913) | 9.2% | 9.7% | 10.6% | 15.3% | 10.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sitoy Group Holdings Ltd ($1023) | 62.1% | 39.3% | 28.7% | 31.8% | |
| HOSA International Ltd ($2200) | 44.2% | 34.6% | 32.0% | 28.2% | |
| Miko International Holdings Ltd ($1247) | 75.1% | 60.9% | 48.8% | 27.3% | |
| Cabbeen Fashion Ltd ($2030) | 25.7% | 32.3% | 32.9% | 26.5% | |
| Fuguiniao Co Ltd ($1819) | 27.8% | 34.1% | 31.6% | 22.9% | |
| |
|---|
| Median (43 companies) | 10.7% | 7.7% | 6.6% | 3.2% | |
|---|
| Prada SpA ($1913) | 24.6% | 32.1% | 37.4% | 34.0% | 21.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| High Fashion International Ltd ($608) | 4.9x | 16.7x | 27.7x | 11.2x | |
| S Culture International Holdings Ltd ($1255) | 0.8x | 1.4x | 0.7x | 2.4x | |
| UKF Holdings Ltd ($1468) | 0.9x | 1.2x | -3.2x | 2.4x | |
| Texhong Textile Group Ltd ($2678) | 3.9x | 1.4x | 1.3x | 2.3x | |
| Highlight China IoT International Ltd ($1682) | -0.2x | -0.3x | 0.4x | 2.2x | |
| |
|---|
| Median (30 companies) | -0.9x | -0.5x | -0.7x | -0.7x | |
|---|
| Prada SpA ($1913) | 0.8x | -0.0x | -0.3x | -0.3x | -0.2x |
