Natural Dairy NZ Holdings Ltd revenue dropped on 54.8% in 2015 and EBITDA Margin dropped on 156 pp from -15.3% to -172%
21/03/2016 • About Natural Dairy NZ Holdings Ltd (
$462) • By InTwits
Natural Dairy NZ Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Natural Dairy NZ Holdings Ltd is a company in decline: FY2015 revenue growth was -54.8%, 5 years revenue CAGR was -10.9%
- The company operates at negative EBITDA Margin: -171.7%
- Natural Dairy NZ 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 -259.6%0
- The company has unprofitable business model: ROIC is at -3.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Natural Dairy NZ Holdings Ltd ($462) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 58.345 | 30.811 | 36.692 | 64.781 | 29.297 | -54.8% |
| Gross Profit | 9.528 | -4.227 | 10.085 | 31.617 | 14.533 | -54.0% |
| SG&A | | | 74.576 | 60.600 | 79.621 | 31.4% |
| EBITDA | -218.606 | -246.366 | -45.732 | -9.882 | -50.294 | 408.9% |
| Net Income | -154.260 | -331.295 | -103.752 | -64.833 | -750.736 | 1,058.0% |
Balance Sheet
|
|---|
| Cash | 123.490 | 1.514 | 6.338 | 1.779 | 1.737 | -2.4% |
| Short Term Debt | 45.210 | 60.835 | 86.464 | 40.928 | 137.142 | 235.1% |
| Long Term Debt | 0.000 | 181.798 | 206.188 | 234.036 | 266.678 | 13.9% |
Cash flow
|
|---|
| Capex | 130.284 | 39.879 | 5.272 | 6.875 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 12.0% | -47.2% | 19.1% | 76.6% | -54.8% | |
| EBITDA growth | 140.1% | 12.7% | -81.4% | -78.4% | 408.9% | |
| Gross Margin | 16.3% | -13.7% | 27.5% | 48.8% | 49.6% | 0.8% |
| EBITDA Margin | -374.7% | -799.6% | -124.6% | -15.3% | -171.7% | -156.4% |
| Net Income Margin | -264.4% | -1,075.2% | -282.8% | -100.1% | -2,562.5% | -2,462.4% |
| SG&A, % of revenue | | | 203.2% | 93.5% | 271.8% | 178.2% |
| CAPEX, % of revenue | 223.3% | 129.4% | 14.4% | 10.6% | | -10.6% |
| ROIC | -14.7% | -16.1% | -3.6% | -1.4% | -3.4% | -2.0% |
| ROE | -14.9% | -22.7% | -6.5% | -4.3% | -67.0% | -62.7% |
Revenue and profitability
Natural Dairy NZ Holdings Ltd's Revenue dropped on 54.8% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 156 pp from -15.3% to -172% in FY2015.
Gross Margin increased slightly on 0.80 pp from 48.8% to 49.6% in FY2015. SG&A as a % of Revenue surged on 178 pp from 93.5% to 272% in FY2015.
Net Income marign dropped on 2,462 pp from -100% to -2,563% in FY2015.
Return on investment
The company operates at negative ROIC (-3.44%) and ROE (-66.98%). ROIC decreased on 2.0 pp from -1.4% to -3.4% in FY2015. ROE dropped on 62.7 pp from -4.3% to -67.0% in FY2015.
Leverage (Debt)
Debt level is -2.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt jumped on 46.9% in FY2015 while cash decreased on 2.4% in FY2015.
Appendix 1: Peers in Food
Below you can find Natural Dairy NZ Holdings Ltd benchmarking vs. other companies in Food 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 |
|---|
| Wealth Glory Holdings Ltd ($8269) | | -16.5% | -53.8% | 555.7% | -12.4% |
| China Modern Dairy Holdings Ltd ($1117) | | 50.7% | 96.1% | 52.8% | -4.0% |
| China Huishan Dairy Holdings Co Ltd ($6863) | | 256.3% | 91.5% | 38.3% | 11.1% |
| Asia Cassava Resources Holdings Ltd ($841) | | -3.0% | 99.6% | 32.6% | -28.4% |
| YuanShengTai Dairy Farm Ltd ($1431) | 44,049.9% | 363.2% | 27.8% | 32.0% | |
| |
|---|
| Median (37 companies) | 22.5% | 9.8% | 5.6% | 0.4% | -2.3% |
|---|
| Natural Dairy NZ Holdings Ltd ($462) | | -47.2% | 19.1% | 76.6% | -54.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honworld Group Ltd ($2226) | 42.2% | 57.2% | 59.0% | 57.8% | |
| Shenguan Holdings Group Ltd ($829) | 61.9% | 58.2% | 58.5% | 54.9% | 44.2% |
| Yashili International Holdings Ltd ($1230) | 52.0% | 53.7% | 53.5% | 51.2% | |
| Christine International Holdings Ltd ($1210) | 51.3% | 50.2% | 49.7% | 47.2% | |
| YuanShengTai Dairy Farm Ltd ($1431) | 34.5% | 37.8% | 42.6% | 45.7% | |
| |
|---|
| Median (37 companies) | 18.1% | 16.8% | 18.5% | 19.8% | 19.4% |
|---|
| Natural Dairy NZ Holdings Ltd ($462) | 16.3% | -13.7% | 27.5% | 48.8% | 49.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenguan Holdings Group Ltd ($829) | 57.2% | 58.7% | 59.2% | 54.5% | 43.6% |
| YuanShengTai Dairy Farm Ltd ($1431) | 147.8% | 40.3% | 48.4% | 47.1% | |
| China Huishan Dairy Holdings Co Ltd ($6863) | 109.2% | 45.1% | 47.9% | 47.1% | 37.2% |
| Honworld Group Ltd ($2226) | 28.4% | 44.4% | 42.1% | 42.0% | |
| China Modern Dairy Holdings Ltd ($1117) | 33.9% | 33.5% | 27.0% | 25.3% | 21.1% |
| |
|---|
| Median (37 companies) | 8.8% | 7.9% | 6.7% | 7.6% | 8.0% |
|---|
| Natural Dairy NZ Holdings Ltd ($462) | -374.7% | -799.6% | -124.6% | -15.3% | -171.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Huishan Dairy Holdings Co Ltd ($6863) | 453.6% | 98.2% | 29.8% | 132.0% | 109.8% |
| Honworld Group Ltd ($2226) | 25.3% | 6.0% | 10.8% | 50.8% | |
| YuanShengTai Dairy Farm Ltd ($1431) | 182.5% | 26.1% | 18.3% | 43.4% | |
| Yashili International Holdings Ltd ($1230) | 3.6% | 8.2% | 7.1% | 20.1% | |
| Vedan International Holdings Ltd ($2317) | 2.8% | 2.5% | 2.4% | 18.8% | |
| |
|---|
| Median (37 companies) | 3.6% | 5.9% | 5.6% | 5.1% | 3.4% |
|---|
| Natural Dairy NZ Holdings Ltd ($462) | 223.3% | 129.4% | 14.4% | 10.6% | |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honworld Group Ltd ($2226) | 22.1% | 50.4% | 44.5% | 23.6% | |
| Want Want China Holdings Ltd ($151) | 24.9% | 27.9% | 29.4% | 22.8% | 21.8% |
| Shenguan Holdings Group Ltd ($829) | 40.6% | 40.0% | 33.2% | 21.4% | 10.0% |
| Huisheng International Holdings Ltd ($1340) | 63.0% | 31.9% | 23.7% | 16.3% | |
| Asia Cassava Resources Holdings Ltd ($841) | 13.8% | 4.2% | 5.9% | 13.6% | 11.6% |
| |
|---|
| Median (38 companies) | 11.6% | 7.6% | 6.5% | 5.6% | 5.6% |
|---|
| Natural Dairy NZ Holdings Ltd ($462) | -14.7% | -16.1% | -3.6% | -1.4% | -3.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Yurun Food Group Ltd ($1068) | 0.4x | 40.7x | 6.9x | 9.4x | |
| Beijing Jingkelong Co Ltd ($814) | 3.4x | 5.0x | 4.8x | 5.3x | 9.3x |
| CP Lotus Corp ($121) | 2.3x | | 6.5x | 5.1x | 3.0x |
| DaChan Food Asia Ltd ($3999) | -0.3x | 0.1x | 1.3x | 4.8x | |
| First Pacific Co Ltd/Hong Kong ($142) | 1.3x | 1.8x | 3.8x | 4.5x | |
| |
|---|
| Median (30 companies) | 0.0x | -0.4x | 0.8x | 0.7x | 1.2x |
|---|
