Yashili International Holdings Ltd EBITDA dropped on 80.7% in 2015 and Revenue dropped on 22.3%
22/03/2016 • About Yashili International Holdings Ltd (
$1230) • By InTwits
Yashili International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yashili International Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -1.2%
- EBITDA Margin is declining: 3.3% in 2015 vs. 13.4% in 2014 vs. 13.3% in 2011
- EBITDA Margin is quite volatile: 3.3% in 2015, 13.4% in 2014, 14.6% in 2013, 17.5% in 2012, 13.3% in 2011
- Yashili International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.3%. At the same time it's in pair with industry average of 14.1%.
- CAPEX is quite volatile: 344 in 2015, 713 in 2014, 277 in 2013, 299 in 2012, 107 in 2011
- The company has unprofitable business model: ROIC is at -1.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yashili International Holdings Ltd ($1230) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,958 | 3,655 | 3,890 | 3,554 | 2,762 | -22.3% |
| Gross Profit | 1,538 | 1,962 | 2,080 | 1,819 | 1,402 | -22.9% |
| SG&A | 1,247 | 1,425 | 1,613 | 1,593 | 1,528 | -4.1% |
| EBITDA | 392 | 641 | 567 | 477 | 92 | -80.7% |
| Net Income | 306 | 468 | 438 | 333 | 118 | -64.4% |
Balance Sheet
|
|---|
| Cash | 2,582 | 2,685 | 810 | 800 | 2,480 | 210.0% |
| Short Term Debt | 31 | 331 | 154 | 141 | 462 | 226.4% |
| Long Term Debt | 0 | 0 | 47 | 621 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 107 | 299 | 277 | 713 | 344 | -51.7% |
Ratios
|
|---|
| Revenue growth | 0.1% | 23.6% | 6.4% | -8.7% | -22.3% | |
| EBITDA growth | -41.1% | 63.5% | -11.5% | -15.9% | -80.7% | |
| Gross Margin | 52.0% | 53.7% | 53.5% | 51.2% | 50.8% | -0.4% |
| EBITDA Margin | 13.3% | 17.5% | 14.6% | 13.4% | 3.3% | -10.1% |
| Net Income Margin | 10.4% | 12.8% | 11.2% | 9.4% | 4.3% | -5.1% |
| SG&A, % of revenue | 42.2% | 39.0% | 41.5% | 44.8% | 55.3% | 10.5% |
| CAPEX, % of revenue | 3.6% | 8.2% | 7.1% | 20.1% | 12.5% | -7.6% |
| ROIC | 8.1% | 13.5% | 12.5% | 8.9% | -1.2% | -10.2% |
| ROE | 8.1% | 11.9% | 12.2% | 10.1% | 2.5% | -7.6% |
| Net Debt/EBITDA | -6.5x | -3.7x | -1.1x | -0.1x | -21.9x | -21.8x |
Revenue and profitability
The company's Revenue dropped on 22.3% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 10.1 pp from 13.4% to 3.3% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue jumped on 10.5 pp from 44.8% to 55.3% in 2015.
Net Income marign decreased on 5.1 pp from 9.4% to 4.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 12.5%. CAPEX/Revenue increased on 4.3 pp from 8.2% in 2012 to 12.5% in 2015. For the last three years the average CAPEX/Revenue was 13.2%.Battling declining revenue Yashili International Holdings Ltd made large investments to CAPEX (373% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-1.25%) and low but positive ROE (2.51%). ROIC dropped on 10.2 pp from 8.9% to -1.2% in 2015. ROE decreased on 7.6 pp from 10.1% to 2.5% in 2015.
Leverage (Debt)
Debt level is -21.9x Net Debt / EBITDA and 5.0x Debt / EBITDA. Net Debt / EBITDA dropped on 21.8x from -0.1x to -21.9x in 2015. Debt dropped on 39.5% in 2015 while cash jumped on 210% in 2015.
Appendix 1: Peers in Food
Below we provide Yashili International Holdings Ltd benchmarking against other companies in Food 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 |
|---|
| Wealth Glory Holdings Ltd ($8269) | | -16.5% | -53.8% | 555.7% | -12.4% |
| Natural Dairy NZ Holdings Ltd ($462) | | -47.2% | 19.1% | 76.6% | -54.8% |
| 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% |
| |
|---|
| Median (37 companies) | 22.4% | 9.4% | 5.6% | 2.7% | -2.9% |
|---|
| Yashili International Holdings Ltd ($1230) | | 23.6% | 6.4% | -8.7% | -22.3% |
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% |
| Natural Dairy NZ Holdings Ltd ($462) | 16.3% | -13.7% | 27.5% | 48.8% | 49.6% |
| 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% | 36.8% |
| |
|---|
| Median (37 companies) | 17.7% | 16.5% | 18.5% | 19.8% | 22.8% |
|---|
| Yashili International Holdings Ltd ($1230) | 52.0% | 53.7% | 53.5% | 51.2% | 50.8% |
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% | 35.4% |
| 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) | 8.5% | 7.8% | 6.5% | 7.4% | 8.5% |
|---|
| Yashili International Holdings Ltd ($1230) | 13.3% | 17.5% | 14.6% | 13.4% | 3.3% |
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% | 30.1% |
| Vedan International Holdings Ltd ($2317) | 2.8% | 2.5% | 2.4% | 18.8% | |
| China Modern Dairy Holdings Ltd ($1117) | 58.9% | 50.6% | | 18.7% | 42.4% |
| |
|---|
| Median (37 companies) | 3.9% | 5.9% | 5.6% | 5.1% | 5.2% |
|---|
| Yashili International Holdings Ltd ($1230) | 3.6% | 8.2% | 7.1% | 20.1% | 12.5% |
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% | 6.7% | 5.9% | 5.5% | 6.0% |
|---|
| Yashili International Holdings Ltd ($1230) | 8.1% | 13.5% | 12.5% | 8.9% | -1.2% |
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 (29 companies) | 0.2x | -0.3x | 0.8x | 0.8x | 1.4x |
|---|
| Yashili International Holdings Ltd ($1230) | -6.5x | -3.7x | -1.1x | -0.1x | -21.9x |
