Mascotte Holdings Ltd reports 7.2% revenue decline in FY2015 and 24.6 pp EBITDA Margin decline from -43.1% to -67.7%
25/06/2015 • About Mascotte Holdings Ltd (
$136) • By InTwits
Mascotte Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mascotte Holdings Ltd is a company in decline: FY2015 revenue growth was -7.2%, 5 years revenue CAGR was -16.2%
- The company operates at negative EBITDA Margin: -67.7%
- Mascotte Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -116.8%0
- Mascotte Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.5%. At the same time it's a lot of higher than industry average of 3.5%.
- CAPEX is quite volatile: 0.56 in FY2015, 13.2 in FY2014, 73.4 in FY2013, 128 in FY2012, 0.85 in FY2011
- The company has unprofitable business model: ROIC is at -85.2%
- It operates with high leverage: Net Debt/EBITDA is 6.2x while industry average is -0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mascotte Holdings Ltd ($136) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 189.5 | 172.1 | 163.3 | 107.9 | 100.1 | -7.2% |
| Gross Profit | 46.9 | 35.6 | 49.1 | 33.9 | 34.2 | 1.1% |
| SG&A | | | 126.6 | 82.1 | 104.1 | 26.8% |
| EBITDA | -242.5 | -388.2 | -111.1 | -46.5 | -67.8 | 45.8% |
| Net Income | -244.8 | -621.3 | -1,176.6 | -545.7 | -128.4 | -76.5% |
Balance Sheet
|
|---|
| Cash | 16.8 | 208.2 | 52.7 | 59.1 | 45.8 | -22.4% |
| Short Term Debt | 0.5 | 28.7 | 503.3 | 70.4 | 16.5 | -76.6% |
| Long Term Debt | 0.0 | 2,346.8 | 893.3 | 92.5 | 60.4 | -34.7% |
Cash flow
|
|---|
| Capex | 0.8 | 127.8 | 73.4 | 13.2 | 0.6 | -95.7% |
Ratios
|
|---|
| Revenue growth | -21.7% | -9.1% | -5.1% | -33.9% | -7.2% | |
| EBITDA growth | -480.7% | 60.0% | -71.4% | -58.2% | 45.8% | |
| Gross Margin | 24.8% | 20.7% | 30.1% | 31.4% | 34.2% | 2.8% |
| EBITDA Margin | -128.0% | -225.5% | -68.1% | -43.1% | -67.7% | -24.6% |
| Net Income Margin | -129.2% | -360.9% | -720.6% | -505.9% | -128.3% | 377.6% |
| SG&A, % of revenue | | | 77.5% | 76.1% | 104.0% | 27.9% |
| CAPEX, % of revenue | 0.4% | 74.2% | 45.0% | 12.2% | 0.6% | -11.6% |
| ROIC | -33.7% | -18.4% | -5.7% | -22.7% | -85.2% | -62.5% |
| ROE | -34.9% | -62.8% | | | | 0.0% |
Revenue and profitability
The company's Revenue decreased on 7.2% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 24.6 pp from -43.1% to -67.7% in FY2015.
Gross Margin increased on 2.8 pp from 31.4% to 34.2% in FY2015. SG&A as a % of Revenue surged on 27.9 pp from 76.1% to 104% in FY2015.
Net Income marign jumped on 378 pp from -506% to -128% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.56% in FY2015. The company showed big decline in CAPEX/Revenue of 73.7 pp from 74.2% in FY2012 to 0.56% in FY2015. For the last three years the average CAPEX/Revenue was 19.2%.
Leverage (Debt)
Debt level is 6.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt dropped on 52.8% in FY2015 while cash dropped on 22.4% in FY2015.
Appendix 1: Peers in Apparel
Below we provide Mascotte Holdings Ltd 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 (46 companies) | 20.5% | 5.3% | 1.0% | 5.3% | -0.5% |
|---|
| Mascotte Holdings Ltd ($136) | | -9.1% | -5.1% | -33.9% | -7.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prada SpA ($1913) | 67.8% | 71.5% | 72.1% | 73.8% | 71.8% |
| China Outfitters Holdings Ltd ($1146) | 76.1% | 74.9% | 74.3% | 70.0% | |
| C.banner International Holdings Ltd ($1028) | 63.5% | 63.3% | 62.0% | 63.4% | |
| 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% | |
| |
|---|
| Median (45 companies) | 23.7% | 24.6% | 22.9% | 22.1% | 22.1% |
|---|
| Mascotte Holdings Ltd ($136) | 24.8% | 20.7% | 30.1% | 31.4% | 34.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HOSA International Ltd ($2200) | 46.3% | 44.4% | 42.2% | 37.6% | |
| Prada SpA ($1913) | 25.9% | 29.6% | 31.7% | 31.7% | 26.8% |
| 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% | |
| |
|---|
| Median (46 companies) | 10.7% | 11.0% | 9.3% | 6.1% | 9.6% |
|---|
| Mascotte Holdings Ltd ($136) | -128.0% | -225.5% | -68.1% | -43.1% | -67.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prada SpA ($1913) | 9.2% | 9.7% | 10.6% | 15.3% | 10.2% |
| Symphony Holdings Ltd/Hong Kong ($1223) | 14.9% | 136.9% | 70.3% | 13.5% | |
| Addchance Holdings Ltd ($3344) | 12.2% | 8.6% | 9.3% | 10.9% | |
| Active Group Holdings Ltd ($1096) | 1.3% | 17.4% | 3.5% | 10.7% | |
| Tack Fiori International Group Ltd ($928) | 3.5% | 23.1% | 134.4% | 10.7% | 0.4% |
| |
|---|
| Median (46 companies) | 2.2% | 2.2% | 3.0% | 2.1% | 2.1% |
|---|
| Mascotte Holdings Ltd ($136) | 0.4% | 74.2% | 45.0% | 12.2% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prada SpA ($1913) | 24.6% | 32.1% | 37.4% | 34.0% | 21.9% |
| 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% | |
| |
|---|
| Median (46 companies) | 12.7% | 9.0% | 6.7% | 3.4% | 5.9% |
|---|
| Mascotte Holdings Ltd ($136) | -33.7% | -18.4% | -5.7% | -22.7% | -85.2% |
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 | |
| Citychamp Watch & Jewellery Group Ltd ($256) | -0.9x | 0.6x | 0.4x | 2.6x | |
| 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 | 0.4x |
| Texhong Textile Group Ltd ($2678) | 3.9x | 1.4x | 1.3x | 2.3x | |
| |
|---|
| Median (33 companies) | -0.9x | -0.3x | -0.7x | -0.3x | -0.2x |
|---|
