China Culiangwang Beverages Holdings Ltd reports 24.5% CAPEX decline and 18.6% Revenue decline
28/07/2015 • About China Culiangwang Beverages Holdings Ltd (
$904) • By InTwits
China Culiangwang Beverages Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Culiangwang Beverages Holdings Ltd is a company in decline: FY2015 revenue growth was -18.6%, 5 years revenue CAGR was -22.8%
- The company operates at negative EBITDA Margin: -24.2%
- EBITDA Margin is quite volatile: -24.2% in FY2015, -45.3% in FY2014, 23.1% in FY2013, 38.9% in FY2012, 39.6% in FY2011
- China Culiangwang Beverages Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 55.1%. At the same time it's a lot of higher than industry average of 13.1%.
- CAPEX is quite volatile: 395 in FY2015, 523 in FY2014, 1,141 in FY2013, 682 in FY2012, 873 in FY2011
- The company has unprofitable business model: ROIC is at -5.8%
- It operates with high leverage: Net Debt/EBITDA is 4.3x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Culiangwang Beverages Holdings Ltd ($904) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,235 | 2,548 | 2,184 | 640 | 521 | -18.6% |
| Gross Profit | 1,119 | 1,133 | 733 | 49 | 94 | 94.0% |
| SG&A | 497 | 443 | 440 | 245 | 211 | -13.7% |
| EBITDA | 884 | 991 | 505 | -290 | -126 | -56.5% |
| Net Income | 459 | 520 | 81 | -475 | -270 | -43.2% |
Balance Sheet
|
|---|
| Cash | 1,712 | 1,683 | 423 | 295 | 142 | -51.9% |
| Short Term Debt | 0 | 1,314 | 1,370 | 425 | 1,210 | 184.5% |
| Long Term Debt | 1,315 | 0 | 0 | 1,202 | 517 | -57.0% |
Cash flow
|
|---|
| Capex | 873 | 682 | 1,141 | 523 | 395 | -24.5% |
Ratios
|
|---|
| Revenue growth | 17.6% | 14.0% | -14.3% | -70.7% | -18.6% | |
| EBITDA growth | 3.5% | 12.1% | -49.0% | -157.4% | -56.5% | |
| Gross Margin | 50.1% | 44.5% | 33.6% | 7.6% | 18.1% | 10.5% |
| EBITDA Margin | 39.6% | 38.9% | 23.1% | -45.3% | -24.2% | 21.1% |
| Net Income Margin | 20.5% | 20.4% | 3.7% | -74.2% | -51.7% | 22.4% |
| SG&A, % of revenue | 22.2% | 17.4% | 20.1% | 38.3% | 40.6% | 2.3% |
| CAPEX, % of revenue | 39.1% | 26.8% | 52.2% | 81.8% | 75.8% | -5.9% |
| ROIC | 14.9% | 15.3% | 5.1% | -9.5% | -5.8% | 3.7% |
| ROE | 14.3% | 14.5% | 2.1% | -12.7% | -7.6% | 5.0% |
| Net Debt/EBITDA | -0.4x | -0.4x | 1.9x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 18.6% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 21.1 pp from -45.3% to -24.2% in FY2015.
Gross Margin jumped on 10.5 pp from 7.6% to 18.1% in FY2015. SG&A as a % of Revenue increased on 2.3 pp from 38.3% to 40.6% in FY2015.
Net Income marign jumped on 22.4 pp from -74.2% to -51.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 China Culiangwang Beverages Holdings Ltd had CAPEX/Revenue of 75.8%. China Culiangwang Beverages Holdings Ltd showed fast CAPEX/Revenue growth of 49.1 pp from 26.8% in FY2012 to 75.8% in FY2015. It's average level of CAPEX/Revenue for the last three years was 69.9%.
Return on investment
The company operates at negative ROIC (-5.82%) and ROE (-7.62%). ROIC increased on 3.7 pp from -9.5% to -5.8% in FY2015. ROE increased on 5.0 pp from -12.7% to -7.6% in FY2015.
Leverage (Debt)
Debt level is 4.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt increased on 6.1% in FY2015 while cash dropped on 51.9% in FY2015.
Appendix 1: Peers in Beverages
Below you can find China Culiangwang Beverages Holdings Ltd benchmarking vs. other companies in Beverages 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 |
|---|
| China Tontine Wines Group Ltd ($389) | 18.0% | -20.7% | -73.3% | 62.7% | |
| Silver base Group Holdings Ltd ($886) | | 34.1% | -86.9% | 25.4% | -14.4% |
| Besunyen Holdings Co Ltd ($926) | -3.9% | -43.5% | 2.6% | 15.7% | |
| Vitasoy International Holdings Ltd ($345) | | 11.6% | 9.0% | 10.9% | 12.4% |
| China Tianyi Holdings Ltd ($756) | -5.0% | 43.0% | -19.2% | 8.3% | |
| |
|---|
| Median (15 companies) | 17.0% | -2.7% | -8.1% | 3.1% | -10.5% |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | | 14.0% | -14.3% | -70.7% | -18.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Besunyen Holdings Co Ltd ($926) | 87.8% | 82.5% | 83.3% | 84.3% | |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 78.8% | 81.4% | 73.2% | 62.7% | |
| Tenfu Cayman Holdings Co Ltd ($6868) | 61.6% | 64.1% | 61.2% | 62.2% | |
| Vitasoy International Holdings Ltd ($345) | 48.1% | 47.4% | 47.5% | 48.4% | 49.7% |
| San Miguel Brewery Hong Kong Ltd ($236) | 43.4% | 42.8% | 42.2% | 42.8% | |
| |
|---|
| Median (15 companies) | 43.4% | 44.8% | 37.7% | 36.6% | 38.8% |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | 50.1% | 44.5% | 33.6% | 7.6% | 18.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 72.2% | 73.3% | 73.2% | 69.2% | |
| China Tianyi Holdings Ltd ($756) | 17.7% | 28.4% | 26.1% | 29.7% | |
| Tenfu Cayman Holdings Co Ltd ($6868) | 27.4% | 27.5% | 25.3% | 26.1% | |
| Yantai North Andre Juice Co ($2218) | 16.1% | 14.1% | 11.9% | 15.5% | |
| China Haisheng Juice Holdings Co Ltd ($359) | 15.2% | 5.8% | 6.6% | 14.9% | |
| |
|---|
| Median (15 companies) | 16.1% | 15.2% | 9.6% | 11.3% | -5.2% |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | 39.6% | 38.9% | 23.1% | -45.3% | -24.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Tianyi Holdings Ltd ($756) | 7.5% | 5.8% | 6.2% | 33.6% | |
| China Tontine Wines Group Ltd ($389) | 5.3% | 15.3% | 129.4% | 16.7% | |
| China Haisheng Juice Holdings Co Ltd ($359) | 3.6% | 4.8% | 6.3% | 15.3% | |
| Tenfu Cayman Holdings Co Ltd ($6868) | 11.2% | 18.3% | 8.8% | 12.0% | |
| China Huiyuan Juice Group Ltd ($1886) | 20.1% | 11.7% | 7.4% | 10.5% | |
| |
|---|
| Median (15 companies) | 6.2% | 10.1% | 6.5% | 7.3% | 3.4% |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | 39.1% | 26.8% | 52.2% | 81.8% | 75.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitasoy International Holdings Ltd ($345) | 23.8% | 20.8% | 20.6% | 21.7% | 23.5% |
| Tenfu Cayman Holdings Co Ltd ($6868) | 26.1% | 19.4% | 17.9% | 15.7% | |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 41.0% | 23.3% | 20.3% | 14.9% | |
| Tsingtao Brewery Co Ltd ($168) | 16.4% | 13.4% | 12.0% | 12.2% | |
| China Tianyi Holdings Ltd ($756) | 7.3% | 12.0% | 6.1% | 6.7% | |
| |
|---|
| Median (15 companies) | 10.3% | 9.6% | 3.0% | 3.2% | -2.4% |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | 14.9% | 15.3% | 5.1% | -9.5% | -5.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Distillery Group Ltd ($39) | | | 4.6x | 17.7x | |
| China Haisheng Juice Holdings Co Ltd ($359) | 3.0x | 11.9x | 16.2x | 8.9x | |
| China Huiyuan Juice Group Ltd ($1886) | 8.6x | 5.4x | 4.3x | 7.9x | |
| Yantai North Andre Juice Co ($2218) | 2.6x | 2.3x | 2.4x | 2.2x | |
| San Miguel Brewery Hong Kong Ltd ($236) | | | 2.0x | 1.0x | |
| |
|---|
| Median (11 companies) | -1.1x | -1.0x | 0.0x | 0.9x | -0.2x |
|---|
