Vedan International Holdings Ltd EBITDA jumped on 92.7% in 2015 and EBITDA Margin increased on 5.9 pp from 6.4% to 12.3%
29/03/2016 • About Vedan International Holdings Ltd (
$2317) • By InTwits
Vedan International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vedan International Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.1%. At the same time it's a lot of higher than industry average of 5.2%.
- CAPEX is quite volatile: 13.0 in 2015, 61.4 in 2014, 8.3 in 2013, 9.2 in 2012, 10.7 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.7%
- It operates with high leverage: Net Debt/EBITDA is 0.2x while industry average is -2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vedan International Holdings Ltd ($2317) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 382.9 | 372.9 | 342.5 | 325.6 | 327.8 | 0.7% |
| Gross Profit | 56.2 | 61.5 | 48.1 | 44.1 | 60.7 | 37.6% |
| SG&A | | 52.4 | 47.9 | 46.1 | 42.7 | -7.5% |
| EBITDA | 33.6 | 33.6 | 24.2 | 20.9 | 40.3 | 92.7% |
| Net Income | 7.9 | 7.3 | 1.5 | -2.4 | 12.1 | -596.9% |
Balance Sheet
|
|---|
| Cash | 45.5 | 42.6 | 39.5 | 37.5 | 44.2 | 17.9% |
| Short Term Debt | 30.2 | 28.0 | 43.1 | 38.9 | 23.1 | -40.5% |
| Long Term Debt | 9.9 | 5.3 | 2.1 | 32.7 | 28.6 | -12.5% |
Cash flow
|
|---|
| Capex | 10.7 | 9.2 | 8.3 | 61.4 | 13.0 | -78.8% |
Ratios
|
|---|
| Revenue growth | 13.9% | -2.6% | -8.2% | -4.9% | 0.7% | |
| EBITDA growth | -1.4% | -0.2% | -27.8% | -13.6% | 92.7% | |
| Gross Margin | 14.7% | 16.5% | 14.0% | 13.5% | 18.5% | 5.0% |
| EBITDA Margin | 8.8% | 9.0% | 7.1% | 6.4% | 12.3% | 5.9% |
| Net Income Margin | 2.1% | 2.0% | 0.4% | -0.7% | 3.7% | 4.4% |
| SG&A, % of revenue | | 14.0% | 14.0% | 14.2% | 13.0% | -1.1% |
| CAPEX, % of revenue | 2.8% | 2.5% | 2.4% | 18.8% | 4.0% | -14.9% |
| ROIC | 2.6% | 2.7% | 0.2% | -0.2% | 5.7% | 5.9% |
| ROE | 2.9% | 2.7% | 0.5% | -0.9% | 4.4% | 5.3% |
| Net Debt/EBITDA | -0.2x | -0.3x | 0.2x | 1.6x | 0.2x | -1.4x |
Revenue and profitability
Vedan International Holdings Ltd's Revenue increased slightly on 0.67% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.9 pp from 6.4% to 12.3% in 2015.
Gross Margin increased on 5.0 pp from 13.5% to 18.5% in 2015. SG&A as a % of Revenue decreased slightly on 1.1 pp from 14.2% to 13.0% in 2015.
Net Income marign increased on 4.4 pp from -0.75% to 3.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Vedan International Holdings Ltd had CAPEX/Revenue of 4.0%. Vedan International Holdings Ltd showed small growth in CAPEX/Revenue of 1.5 pp from 2.5% in 2012 to 4.0% in 2015. It's average CAPEX/Revenue for the last three years was 8.4%.
Return on investment
The company operates at low ROIC (5.68%) and ROE (4.44%). ROIC increased on 5.9 pp from -0.19% to 5.7% in 2015. ROE increased on 5.3 pp from -0.90% to 4.4% in 2015.
Leverage (Debt)
Debt level is 0.2x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA dropped on 1.4x from 1.6x to 0.2x in 2015. Debt dropped on 27.7% in 2015 while cash surged on 17.9% in 2015.
Appendix 1: Peers in Food
Below you can find Vedan International 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 |
|---|
| Imperial Pacific International Holdings Ltd ($1076) | | -27.6% | -18.5% | 2.7% | 70.3% |
| Chinese Food and Beverage Group ($8272) | | 207.7% | 149.2% | 26.8% | 31.6% |
| Huisheng International Holdings Ltd ($1340) | | -2.4% | 5.6% | 8.7% | 25.9% |
| Honworld Group Ltd ($2226) | | 207.9% | 57.3% | 26.0% | 19.5% |
| China Huishan Dairy Holdings Co Ltd ($6863) | | 256.3% | 91.5% | 38.3% | 11.1% |
| |
|---|
| Median (32 companies) | 22.5% | 10.1% | 8.4% | 4.7% | -3.7% |
|---|
| Vedan International Holdings Ltd ($2317) | | -2.6% | -8.2% | -4.9% | 0.7% |
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% | 56.4% |
| 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% |
| Christine International Holdings Ltd ($1210) | 51.3% | 50.2% | 49.7% | 47.2% | 47.2% |
| |
|---|
| Median (31 companies) | 18.1% | 16.8% | 19.7% | 20.0% | 23.9% |
|---|
| Vedan International Holdings Ltd ($2317) | 14.7% | 16.5% | 14.0% | 13.5% | 18.5% |
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% |
| Honworld Group Ltd ($2226) | 28.4% | 44.4% | 42.1% | 42.0% | 42.9% |
| China Huishan Dairy Holdings Co Ltd ($6863) | 109.2% | 45.1% | 47.9% | 47.1% | 37.2% |
| YuanShengTai Dairy Farm Ltd ($1431) | 147.8% | 40.3% | 48.4% | 47.1% | 35.4% |
| Want Want China Holdings Ltd ($151) | 20.1% | 23.8% | 25.8% | 23.8% | 25.2% |
| |
|---|
| Median (31 companies) | 8.0% | 7.9% | 6.5% | 7.6% | 8.0% |
|---|
| Vedan International Holdings Ltd ($2317) | 8.8% | 9.0% | 7.1% | 6.4% | 12.3% |
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% | 21.8% |
| 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% |
| China Modern Dairy Holdings Ltd ($1117) | 58.9% | 50.6% | | 18.7% | 42.4% |
| |
|---|
| Median (39 companies) | 4.9% | 5.9% | 5.6% | 5.1% | 5.6% |
|---|
| Vedan International Holdings Ltd ($2317) | 2.8% | 2.5% | 2.4% | 18.8% | 4.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Want Want China Holdings Ltd ($151) | 24.9% | 27.9% | 29.4% | 22.8% | 21.8% |
| Honworld Group Ltd ($2226) | 22.1% | 50.4% | 44.5% | 23.6% | 16.5% |
| WH Group Ltd ($288) | | 20.3% | 3.6% | 15.0% | 13.3% |
| Tenwow International Holdings Ltd ($1219) | 20.3% | 19.7% | 15.7% | 12.8% | 11.9% |
| Asia Cassava Resources Holdings Ltd ($841) | 13.8% | 4.2% | 5.9% | 13.6% | 11.6% |
| |
|---|
| Median (32 companies) | 11.6% | 8.0% | 6.5% | 5.6% | 5.6% |
|---|
| Vedan International Holdings Ltd ($2317) | 2.6% | 2.7% | 0.2% | -0.2% | 5.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Beijing Jingkelong Co Ltd ($814) | 3.4x | 5.0x | 4.8x | 5.3x | 9.3x |
| China Kangda Food Co Ltd ($834) | 2.1x | 2.8x | 2.5x | 2.3x | 5.4x |
| China Modern Dairy Holdings Ltd ($1117) | 1.3x | 3.7x | 5.2x | 4.1x | 5.3x |
| Asia Cassava Resources Holdings Ltd ($841) | 0.6x | 4.0x | 5.6x | -0.6x | 4.7x |
| China Huishan Dairy Holdings Co Ltd ($6863) | 5.6x | 3.3x | 1.8x | 0.8x | 3.7x |
| |
|---|
| Median (26 companies) | 0.4x | -0.5x | 0.8x | 0.7x | 1.3x |
|---|
| Vedan International Holdings Ltd ($2317) | -0.2x | -0.3x | 0.2x | 1.6x | 0.2x |
