Kenford Group Holdings Ltd reports 5.2% revenue decline in FY2015 and 6.7 pp EBITDA Margin growth from -3.1% to 3.7%
26/06/2015 • About Kenford Group Holdings Ltd (
$464) • By InTwits
Kenford Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kenford Group Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is 1.1%
- EBITDA Margin is quite volatile: 3.7% in FY2015, -3.1% in FY2014, 7.1% in FY2013, 9.9% in FY2012, 14.5% in FY2011
- Kenford Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 4.9%.
- CAPEX is quite volatile: 20.8 in 2015, 63.7 in 2014, 53.5 in 2013, 0.067 in 2012, 0.56 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.1%
- It operates with high leverage: Net Debt/EBITDA is -2.4x while industry average is -3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kenford Group Holdings Ltd ($464) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 655.5 | 634.4 | 657.3 | 617.2 | 585.0 | -5.2% |
| Gross Profit | 135.2 | 114.5 | 106.1 | 47.7 | 80.9 | 69.4% |
| SG&A | | | 89.2 | 93.1 | 84.6 | -9.2% |
| EBITDA | 95.0 | 62.6 | 46.5 | -18.8 | 21.5 | -214.2% |
| Net Income | 65.7 | 30.9 | 21.3 | -31.6 | 0.8 | -102.5% |
Balance Sheet
|
|---|
| Cash | 144.8 | 132.5 | 126.9 | 103.8 | 96.9 | -6.6% |
| Short Term Debt | 91.8 | 83.0 | 64.6 | 62.1 | 44.5 | -28.3% |
| Long Term Debt | 0.6 | 0.1 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 14.4 | 8.9 | 15.2 | 11.7 | 10.3 | -12.1% |
Ratios
|
|---|
| Revenue growth | 7.9% | -3.2% | 3.6% | -6.1% | -5.2% | |
| EBITDA growth | 17.0% | -34.1% | -25.7% | -140.5% | -214.2% | |
| Gross Margin | 20.6% | 18.0% | 16.1% | 7.7% | 13.8% | 6.1% |
| EBITDA Margin | 14.5% | 9.9% | 7.1% | -3.1% | 3.7% | 6.7% |
| Net Income Margin | 10.0% | 4.9% | 3.2% | -5.1% | 0.1% | 5.3% |
| SG&A, % of revenue | | | 13.6% | 15.1% | 14.5% | -0.6% |
| CAPEX, % of revenue | 2.2% | 1.4% | 2.3% | 1.9% | 1.8% | -0.1% |
| ROIC | 19.0% | 10.6% | 6.7% | -7.6% | 1.1% | 8.7% |
| ROE | 21.3% | 9.0% | 5.8% | -8.5% | 0.2% | 8.7% |
| Net Debt/EBITDA | -0.6x | -0.8x | -1.3x | | -2.4x | -2.4x |
Revenue and profitability
Kenford Group Holdings Ltd's Revenue decreased on 5.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 6.7 pp from -3.1% to 3.7% in FY2015.
Gross Margin increased on 6.1 pp from 7.7% to 13.8% in FY2015. SG&A as a % of Revenue decreased slightly on 0.63 pp from 15.1% to 14.5% in FY2015.
Net Income marign increased on 5.3 pp from -5.1% to 0.14% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.8%. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 2.0%.
Return on investment
The company operates at low ROIC (1.10%) and ROE (0.22%). ROIC increased on 8.7 pp from -7.6% to 1.1% in FY2015. ROE increased on 8.7 pp from -8.5% to 0.22% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.4x and Debt / EBITDA is 2.1x. Net Debt / EBITDA dropped2.4x from to -2.4x in FY2015. Debt dropped on 28.3% in FY2015 while cash decreased on 6.6% in FY2015.
Appendix 1: Peers in Household Products/Wares
Below you can find Kenford Group Holdings Ltd benchmarking vs. other companies in Household Products/Wares 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lisi Group Holdings Ltd ($526) | | 2.5% | -23.5% | 160.0% | 47.9% |
| Goodbaby International Holdings Ltd ($1086) | 5.9% | 15.5% | -8.0% | 46.0% | |
| Tempus Holdings Ltd ($6880) | -27.6% | 17.3% | 5.5% | 31.1% | |
| Samsonite International SA ($1910) | 28.8% | 13.2% | 15.0% | 15.4% | |
| eForce Holdings Ltd ($943) | -3.2% | 9.1% | 11.0% | 11.3% | |
| |
|---|
| Median (8 companies) | 5.9% | 12.3% | 4.4% | 13.3% | 47.9% |
|---|
| Kenford Group Holdings Ltd ($464) | | -3.2% | 3.6% | -6.1% | -5.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Carpenter Tan Holdings Ltd ($837) | 68.4% | 66.9% | 67.0% | 65.8% | |
| Tempus Holdings Ltd ($6880) | 71.5% | 68.4% | 64.8% | 64.6% | |
| Biostime International Holdings Ltd ($1112) | 66.5% | 65.9% | 65.2% | 61.9% | |
| Samsonite International SA ($1910) | 54.8% | 53.7% | 53.4% | 52.9% | |
| eForce Holdings Ltd ($943) | 14.0% | 21.2% | 24.3% | 25.6% | |
| |
|---|
| Median (8 companies) | 38.6% | 39.1% | 38.8% | 39.3% | 22.5% |
|---|
| Kenford Group Holdings Ltd ($464) | 20.6% | 18.0% | 16.1% | 7.7% | 13.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Carpenter Tan Holdings Ltd ($837) | 52.8% | 49.0% | 48.1% | 48.6% | |
| Biostime International Holdings Ltd ($1112) | 30.0% | 30.4% | 27.6% | 24.3% | |
| Lerado Group Holding Co Ltd ($1225) | 6.6% | 8.6% | 25.2% | 20.9% | |
| Samsonite International SA ($1910) | 15.9% | 15.9% | 16.0% | 14.9% | |
| Goodbaby International Holdings Ltd ($1086) | 5.8% | 7.1% | 7.4% | 4.9% | |
| |
|---|
| Median (8 companies) | 13.8% | 13.8% | 11.7% | 9.9% | 10.0% |
|---|
| Kenford Group Holdings Ltd ($464) | 14.5% | 9.9% | 7.1% | -3.1% | 3.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lerado Group Holding Co Ltd ($1225) | 4.3% | 3.0% | 75.4% | 18.8% | |
| Lisi Group Holdings Ltd ($526) | 7.9% | 7.1% | 11.3% | 6.1% | 13.1% |
| Samsonite International SA ($1910) | 2.4% | 2.1% | 2.8% | 3.0% | |
| Biostime International Holdings Ltd ($1112) | 1.8% | 1.2% | 3.0% | 2.8% | |
| Tempus Holdings Ltd ($6880) | 1.0% | 0.9% | 4.0% | 2.8% | |
| |
|---|
| Median (8 companies) | 3.1% | 2.5% | 2.9% | 2.8% | 13.1% |
|---|
| Kenford Group Holdings Ltd ($464) | 2.2% | 1.4% | 2.3% | 1.9% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biostime International Holdings Ltd ($1112) | 34.3% | 41.7% | 39.9% | 24.7% | |
| Samsonite International SA ($1910) | 18.5% | 20.8% | 21.8% | 21.1% | |
| Carpenter Tan Holdings Ltd ($837) | 35.2% | 30.3% | 24.6% | 20.7% | |
| Goodbaby International Holdings Ltd ($1086) | 7.3% | 10.7% | 8.8% | 3.9% | |
| Tempus Holdings Ltd ($6880) | 34.9% | 18.2% | 1.3% | 2.5% | |
| |
|---|
| Median (8 companies) | 13.2% | 14.5% | 5.0% | 3.2% | 1.8% |
|---|
| Kenford Group Holdings Ltd ($464) | 19.0% | 10.6% | 6.7% | -7.6% | 1.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lisi Group Holdings Ltd ($526) | 2.9x | 3.4x | | 36.8x | 9.6x |
| Goodbaby International Holdings Ltd ($1086) | -2.0x | -1.3x | -0.5x | 5.9x | |
| Biostime International Holdings Ltd ($1112) | -2.3x | -0.4x | -0.0x | -0.0x | |
| Samsonite International SA ($1910) | -0.5x | -0.4x | -0.6x | -0.2x | |
| Carpenter Tan Holdings Ltd ($837) | -1.9x | -2.5x | -2.1x | -0.9x | |
| |
|---|
| Median (7 companies) | -1.9x | -0.4x | -0.6x | -0.2x | 9.6x |
|---|
