Chinese Food and Beverage Group CAPEX jumped on 61.1% in 2015 and Revenue jumped on 31.6%
28/03/2016 • About Chinese Food and Beverage Group (
$8272) • By InTwits
Chinese Food and Beverage Group reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Chinese Food and Beverage Group doesn't have a profitable business model yet: 2015 ROIC is -16.4%
- The company operates at negative EBITDA Margin: -51.9%
- Chinese Food and Beverage Group motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -89.8% for the sames years0
- Chinese Food and Beverage Group has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.8%. At the same time it's in pair with industry average of 14.4%.
- CAPEX is quite volatile: 7.6 in 2015, 4.7 in 2014, 2.0 in 2013, 2.9 in 2012, 1.5 in 2011
- The company has unprofitable business model: ROIC is at -16.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chinese Food and Beverage Group ($8272) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4.851 | 14.928 | 37.207 | 47.189 | 62.097 | 31.6% |
| Gross Profit | 0.170 | -3.842 | 7.392 | 6.517 | 14.844 | 127.8% |
| SG&A | | 25.604 | 29.821 | 56.956 | 55.342 | -2.8% |
| EBITDA | -24.834 | -28.220 | -19.837 | -44.144 | -32.243 | -27.0% |
| Net Income | -83.366 | -97.189 | -25.268 | -180.480 | -104.086 | -42.3% |
Balance Sheet
|
|---|
| Cash | 34.915 | 2.025 | 2.534 | 2.857 | 2.547 | -10.9% |
| Short Term Debt | 2.495 | 0.056 | 3.858 | 297.965 | 395.118 | 32.6% |
| Long Term Debt | 0.000 | 0.098 | 6.276 | 56.287 | 20.510 | -63.6% |
Cash flow
|
|---|
| Capex | 1.523 | 2.949 | 1.954 | 4.749 | 7.649 | 61.1% |
Ratios
|
|---|
| Revenue growth | -57.4% | 207.7% | 149.2% | 26.8% | 31.6% | |
| EBITDA growth | -45.4% | 13.6% | -29.7% | 122.5% | -27.0% | |
| Gross Margin | 3.5% | -25.7% | 19.9% | 13.8% | 23.9% | 10.1% |
| EBITDA Margin | -511.9% | -189.0% | -53.3% | -93.5% | -51.9% | 41.6% |
| Net Income Margin | -1,718.5% | -651.1% | -67.9% | -382.5% | -167.6% | 214.8% |
| SG&A, % of revenue | | 171.5% | 80.1% | 120.7% | 89.1% | -31.6% |
| CAPEX, % of revenue | 31.4% | 19.8% | 5.3% | 10.1% | 12.3% | 2.3% |
| ROIC | -19.2% | -20.3% | -21.5% | -27.3% | -16.4% | 10.8% |
| ROE | -52.8% | -72.9% | -30.2% | | | 0.0% |
Revenue and profitability
The company's Revenue jumped on 31.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 140 pp from -98.1% to -238% in FY2015.
Gross Margin surged on 10.1 pp from 13.8% to 23.9% in 2015. SG&A as a % of Revenue dropped on 31.6 pp from 121% to 89.1% in 2015.
Net Income marign jumped on 215 pp from -382% to -168% in 2015.
Capital expenditures (CAPEX) and working capital investments
Chinese Food and Beverage Group's CAPEX/Revenue was 12.3% in 2015. CAPEX/Revenue decreased on 7.4 pp from 19.8% in 2012 to 12.3% in 2015. It's average CAPEX/Revenue for the last three years was 9.2%.
Leverage (Debt)
Company's Net Debt / EBITDA is -14.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt jumped on 17.3% in 2015 while cash dropped on 10.9% in 2015.
Appendix 1: Peers in Food
Below you can find Chinese Food and Beverage Group 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% |
| 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 (38 companies) | 22.4% | 9.6% | 6.0% | 1.5% | -3.5% |
|---|
| Chinese Food and Beverage Group ($8272) | | 207.7% | 149.2% | 26.8% | 31.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hung Fook Tong Group Holdings Ltd ($1446) | 57.0% | 60.7% | 60.0% | 58.7% | 60.7% |
| 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% | 50.8% |
| Natural Dairy NZ Holdings Ltd ($462) | 16.3% | -13.7% | 27.5% | 48.8% | 49.6% |
| |
|---|
| Median (38 companies) | 18.5% | 17.2% | 19.6% | 20.1% | 26.4% |
|---|
| Chinese Food and Beverage Group ($8272) | 3.5% | -25.7% | 19.9% | 13.8% | 23.9% |
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 (38 companies) | 8.6% | 8.0% | 6.8% | 7.5% | 8.2% |
|---|
| Chinese Food and Beverage Group ($8272) | -511.9% | -189.0% | -53.3% | -93.5% | -51.9% |
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% |
| Yashili International Holdings Ltd ($1230) | 3.6% | 8.2% | 7.1% | 20.1% | 12.5% |
| Vedan International Holdings Ltd ($2317) | 2.8% | 2.5% | 2.4% | 18.8% | |
| |
|---|
| Median (38 companies) | 3.7% | 5.5% | 5.7% | 5.1% | 5.8% |
|---|
| Chinese Food and Beverage Group ($8272) | 31.4% | 19.8% | 5.3% | 10.1% | 12.3% |
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 (39 companies) | 11.6% | 7.8% | 6.9% | 5.6% | 5.7% |
|---|
| Chinese Food and Beverage Group ($8272) | -19.2% | -20.3% | -21.5% | -27.3% | -16.4% |
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) | 0.2x | -0.3x | 0.7x | 0.7x | 1.2x |
|---|
