Vinda International Holdings Ltd Net Income dropped on 47.0% in 2015 while Revenue jumped on 21.4%
28/01/2016 • About Vinda International Holdings Ltd (
$3331) • By InTwits
Vinda International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vinda International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.5%. At the same time it's a lot of higher than industry average of 6.2%.
- CAPEX is quite volatile: 12,107 in FY2015, 3,332 in FY2014, 3,083 in FY2013, 2,327 in FY2012, 1,849 in FY2011
- The company has business model with low profitability: ROIC is at 9.0%
- It operates with high leverage: Net Debt/EBITDA is 3.3x while industry average is -1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vinda International Holdings Ltd ($3331) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,765 | 6,024 | 6,798 | 7,985 | 9,696 | 21.4% |
| Gross Profit | 1,297 | 1,855 | 1,972 | 2,409 | 2,959 | 22.8% |
| SG&A | 811 | 1,138 | 1,319 | 1,663 | 2,138 | 28.5% |
| EBITDA | 661 | 972 | 968 | 1,218 | 1,331 | 9.3% |
| Net Income | 406 | 537 | 543 | 593 | 314 | -47.0% |
Balance Sheet
|
|---|
| Cash | 715 | 754 | 690 | 720 | 393 | -45.4% |
| Short Term Debt | 801 | 1,219 | 1,032 | 1,556 | 1,253 | -19.5% |
| Long Term Debt | 1,151 | 850 | 1,705 | 2,909 | 3,486 | 19.8% |
Cash flow
|
|---|
| Capex | 770 | 1,238 | 1,373 | 1,033 | 1,207 | 16.8% |
Ratios
|
|---|
| Revenue growth | 32.3% | 26.4% | 12.8% | 17.5% | 21.4% | |
| EBITDA growth | 12.5% | 46.9% | -0.4% | 25.8% | 9.3% | |
| Gross Margin | 27.2% | 30.8% | 29.0% | 30.2% | 30.5% | 0.3% |
| EBITDA Margin | 13.9% | 16.1% | 14.2% | 15.3% | 13.7% | -1.5% |
| Net Income Margin | 8.5% | 8.9% | 8.0% | 7.4% | 3.2% | -4.2% |
| SG&A, % of revenue | 17.0% | 18.9% | 19.4% | 20.8% | 22.0% | 1.2% |
| CAPEX, % of revenue | 16.2% | 20.5% | 20.2% | 12.9% | 12.4% | -0.5% |
| ROIC | 11.4% | 13.8% | 10.4% | 10.0% | 9.0% | -1.0% |
| ROE | 13.9% | 14.8% | 12.4% | 12.2% | 6.3% | -5.9% |
| Net Debt/EBITDA | 1.9x | 1.4x | 2.1x | 3.1x | 3.3x | 0.2x |
Revenue and profitability
The company's Revenue jumped on 21.4% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 15.1 pp from 47.1% to 62.1% in FY2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased slightly on 1.2 pp from 20.8% to 22.0% in 2015.
Net Income marign decreased on 4.2 pp from 7.4% to 3.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 12.4%. Vinda International Holdings Ltd's CAPEX/Revenue decreased on 8.1 pp from 20.5% in 2012 to 12.4% in 2015. For the last three years the average CAPEX/Revenue was 15.2%.To secure this fast growth the company invested a large share of EBITDA (90.7%) to CAPEX.
Return on investment
The company operates at low ROIC (9.02%) and ROE (6.27%). ROIC decreased slightly on 1.0 pp from 10.0% to 9.0% in 2015. ROE decreased on 5.9 pp from 12.2% to 6.3% in 2015.
Leverage (Debt)
Debt level is 3.3x Net Debt / EBITDA and 3.6x Debt / EBITDA. Net Debt / EBITDA jumped on 0.2x from 3.1x to 3.3x in 2015. Debt increased on 6.1% in 2015 while cash dropped on 45.4% in 2015.
Management team
Johann Christoph Michalski is a the company's CEO. Johann Christoph Michalski has spent 3 years at the company. The company's CFO Toby James Lawton has spent 4 years at the company.
Appendix 1: Peers in Cosmetics/Personal Care
Below you can find Vinda International Holdings Ltd benchmarking vs. other companies in Cosmetics/Personal Care 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 |
|---|
| EDS Wellness Holdings Ltd ($8176) | -50.8% | -98.6% | 1,059.5% | 238.8% | |
| Natural Beauty Bio-Technology Ltd ($157) | 21.8% | -18.2% | -9.1% | 15.1% | |
| L'Occitane International SA ($973) | | 18.3% | 14.2% | 1.1% | 11.7% |
| Ming Fai International Holdings Ltd ($3828) | 35.9% | 14.3% | -0.1% | -3.4% | |
| China Child Care Corp Ltd ($1259) | 51.5% | 23.9% | 8.9% | -13.4% | |
| |
|---|
| Median (7 companies) | 13.9% | -5.0% | -0.1% | -3.4% | 11.7% |
|---|
| Vinda International Holdings Ltd ($3331) | | 26.4% | 12.8% | 17.5% | 21.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| L'Occitane International SA ($973) | 82.5% | 82.7% | 82.0% | 81.1% | 81.8% |
| Natural Beauty Bio-Technology Ltd ($157) | 79.3% | 78.6% | 75.8% | 76.9% | |
| China Child Care Corp Ltd ($1259) | 42.4% | 45.9% | 47.3% | 47.5% | |
| EDS Wellness Holdings Ltd ($8176) | 23.6% | -72.8% | -43.6% | 39.8% | |
| BaWang International Group Holding Ltd ($1338) | 38.8% | 41.9% | 48.5% | 37.4% | |
| |
|---|
| Median (6 companies) | 40.6% | 43.9% | 47.9% | 43.7% | 81.8% |
|---|
| Vinda International Holdings Ltd ($3331) | 27.2% | 30.8% | 29.0% | 30.2% | 30.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 31.4% | 38.3% | 25.3% | 29.4% | |
| L'Occitane International SA ($973) | 20.9% | 20.7% | 19.3% | 17.4% | 19.6% |
| China Child Care Corp Ltd ($1259) | 18.3% | 19.4% | 18.6% | 14.2% | |
| Ming Fai International Holdings Ltd ($3828) | 8.0% | 8.0% | 7.4% | 8.6% | |
| EDS Wellness Holdings Ltd ($8176) | -262.4% | -1,026.9% | -249.8% | -13.7% | |
| |
|---|
| Median (7 companies) | 17.1% | 9.5% | 7.4% | 8.6% | 19.6% |
|---|
| Vinda International Holdings Ltd ($3331) | 13.9% | 16.1% | 14.2% | 15.3% | 13.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EDS Wellness Holdings Ltd ($8176) | 0.4% | 387.3% | 119.7% | 14.9% | |
| China Child Care Corp Ltd ($1259) | 4.6% | 2.7% | 10.1% | 7.8% | |
| L'Occitane International SA ($973) | 4.7% | 6.2% | 7.6% | 5.8% | 4.3% |
| Natural Beauty Bio-Technology Ltd ($157) | 8.6% | 10.1% | 5.1% | 3.7% | |
| BaWang International Group Holding Ltd ($1338) | 16.6% | 28.6% | 3.9% | 2.3% | |
| |
|---|
| Median (7 companies) | 4.7% | 6.4% | 6.6% | 3.7% | 4.3% |
|---|
| Vinda International Holdings Ltd ($3331) | 16.2% | 20.5% | 20.2% | 12.9% | 12.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| L'Occitane International SA ($973) | 31.6% | 23.2% | 21.4% | 16.9% | 19.6% |
| Natural Beauty Bio-Technology Ltd ($157) | 20.2% | 19.4% | 9.2% | 13.6% | |
| China Child Care Corp Ltd ($1259) | 38.8% | 27.2% | 23.9% | 13.4% | |
| Ming Fai International Holdings Ltd ($3828) | 6.9% | 7.2% | 4.3% | 5.6% | |
| EDS Wellness Holdings Ltd ($8176) | -52.1% | -5.3% | -48.6% | -8.4% | |
| |
|---|
| Median (7 companies) | 20.2% | 17.7% | 4.3% | 5.6% | 19.6% |
|---|
| Vinda International Holdings Ltd ($3331) | 11.4% | 13.8% | 10.4% | 10.0% | 9.0% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| L'Occitane International SA ($973) | -1.5x | -1.3x | -1.2x | -1.3x | -1.2x |
| Ming Fai International Holdings Ltd ($3828) | -1.2x | -1.5x | -2.5x | -2.1x | |
| Natural Beauty Bio-Technology Ltd ($157) | -3.0x | -2.3x | -4.6x | -3.9x | |
| China Child Care Corp Ltd ($1259) | -3.0x | -2.1x | -2.7x | -4.6x | |
| |
|---|
| Median (4 companies) | -1.5x | -1.9x | -2.6x | -3.0x | -1.2x |
|---|
| Vinda International Holdings Ltd ($3331) | 1.9x | 1.4x | 2.1x | 3.1x | 3.3x |
