Ausnutria Dairy Corp Ltd EBITDA dropped on 86.5% in 2015 and EBITDA Margin decreased on 7.5 pp from 8.6% to 1.1%
30/03/2016 • About Ausnutria Dairy Corp Ltd (
$1717) • By InTwits
Ausnutria Dairy Corp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ausnutria Dairy Corp Ltd doesn't have a profitable business model yet: 2015 ROIC is -1.1%
- EBITDA Margin is quite volatile: 1.1% in 2015, 8.6% in 2014, 10.6% in 2013, 7.9% in 2012, 9.4% in 2011
- Ausnutria Dairy Corp Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.2%. At the same time it's a lot of higher than industry average of 19.8%.
- CAPEX is quite volatile: 157 in 2015, 207 in 2014, 127 in 2013, 40.3 in 2012, 15.6 in 2011
- The company has unprofitable business model: ROIC is at -1.1%
- It operates with high leverage: Net Debt/EBITDA is 27.9x while industry average is -1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ausnutria Dairy Corp Ltd ($1717) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 629 | 1,351 | 1,688 | 1,966 | 2,104 | 7.0% |
| Gross Profit | 219 | 326 | 472 | 567 | 590 | 4.0% |
| SG&A | 172 | 231 | 312 | 441 | 614 | 39.1% |
| EBITDA | 59 | 107 | 179 | 169 | 23 | -86.5% |
| Net Income | 44 | 66 | 121 | 90 | 51 | -43.9% |
Balance Sheet
|
|---|
| Cash | 342 | 283 | 161 | 278 | 308 | 10.5% |
| Short Term Debt | 91 | 96 | 260 | 517 | 757 | 46.4% |
| Long Term Debt | 43 | 39 | 37 | 52 | 189 | 264.8% |
Cash flow
|
|---|
| Capex | 16 | 40 | 127 | 207 | 157 | -23.9% |
Ratios
|
|---|
| Revenue growth | 22.4% | 114.7% | 24.9% | 16.5% | 7.0% | |
| EBITDA growth | -19.9% | 81.0% | 67.5% | -5.6% | -86.5% | |
| Gross Margin | 34.9% | 24.1% | 28.0% | 28.9% | 28.0% | -0.8% |
| EBITDA Margin | 9.4% | 7.9% | 10.6% | 8.6% | 1.1% | -7.5% |
| Net Income Margin | 7.0% | 4.9% | 7.2% | 4.6% | 2.4% | -2.2% |
| SG&A, % of revenue | 27.3% | 17.1% | 18.5% | 22.4% | 29.2% | 6.7% |
| CAPEX, % of revenue | 2.5% | 3.0% | 7.5% | 10.5% | 7.5% | -3.0% |
| ROIC | 4.4% | 6.1% | 10.3% | 7.2% | -1.1% | -8.3% |
| ROE | 4.5% | 6.9% | 11.5% | 8.1% | 4.2% | -4.0% |
| Net Debt/EBITDA | -3.5x | -1.4x | 0.8x | 1.7x | 27.9x | 26.1x |
Revenue and profitability
The company's Revenue increased on 7.0% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 7.5 pp from 8.6% to 1.1% in 2015.
Gross Margin decreased slightly on 0.80 pp from 28.9% to 28.0% in 2015. SG&A as a % of Revenue increased on 6.7 pp from 22.4% to 29.2% in 2015.
Net Income marign decreased on 2.2 pp from 4.6% to 2.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Ausnutria Dairy Corp Ltd had CAPEX/Revenue of 7.5%. CAPEX/Revenue increased on 4.5 pp from 3.0% in 2012 to 7.5% in 2015. It's average CAPEX/Revenue for the last three years was 8.5%.Ausnutria Dairy Corp Ltd investments to CAPEX were large: 686% of EBITDA.
Return on investment
The company operates at negative ROIC (-1.09%) and low but positive ROE (4.18%). ROIC decreased on 8.3 pp from 7.2% to -1.1% in 2015. ROE decreased on 4.0 pp from 8.1% to 4.2% in 2015.
Leverage (Debt)
Debt level is 27.9x Net Debt / EBITDA and 41.3x Debt / EBITDA. Net Debt / EBITDA jumped on 26.1x from 1.7x to 27.9x in 2015. Debt surged on 66.3% in 2015 while cash surged on 10.5% in 2015.
Appendix 1: Peers in Food
Below we provide Ausnutria Dairy Corp 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 |
|---|
| Imperial Pacific International Holdings Ltd ($1076) | | -27.6% | -18.5% | 2.7% | 70.3% |
| China Shengmu Organic Milk Ltd ($1432) | | 80.0% | 63.2% | 86.4% | 45.4% |
| 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% |
| |
|---|
| Median (37 companies) | 15.8% | 9.9% | 7.4% | 3.7% | -2.3% |
|---|
| Ausnutria Dairy Corp Ltd ($1717) | | 114.7% | 24.9% | 16.5% | 7.0% |
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% |
| China Shengmu Organic Milk Ltd ($1432) | 29.4% | 33.4% | 42.9% | 50.2% | 47.7% |
| |
|---|
| Median (36 companies) | 17.7% | 16.5% | 19.6% | 19.9% | 23.8% |
|---|
| Ausnutria Dairy Corp Ltd ($1717) | 34.9% | 24.1% | 28.0% | 28.9% | 28.0% |
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 Shengmu Organic Milk Ltd ($1432) | 58.7% | 31.5% | 38.3% | 47.1% | 41.9% |
| 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% |
| |
|---|
| Median (36 companies) | 8.2% | 8.0% | 6.6% | 7.5% | 8.5% |
|---|
| Ausnutria Dairy Corp Ltd ($1717) | 9.4% | 7.9% | 10.6% | 8.6% | 1.1% |
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% |
| Imperial Pacific International Holdings Ltd ($1076) | 0.0% | 0.0% | 0.0% | 15.6% | 88.5% |
| China Modern Dairy Holdings Ltd ($1117) | 58.9% | 50.6% | | 18.7% | 42.4% |
| Labixiaoxin Snacks Group Ltd ($1262) | 23.0% | 13.3% | 10.3% | 14.6% | 32.0% |
| YuanShengTai Dairy Farm Ltd ($1431) | 182.5% | 26.1% | 18.3% | 43.4% | 30.1% |
| |
|---|
| Median (35 companies) | 5.4% | 5.9% | 5.4% | 5.1% | 5.3% |
|---|
| Ausnutria Dairy Corp Ltd ($1717) | 2.5% | 3.0% | 7.5% | 10.5% | 7.5% |
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% |
| China Shengmu Organic Milk Ltd ($1432) | | 16.4% | 19.6% | 22.5% | 17.3% |
| 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% |
| |
|---|
| Median (37 companies) | 11.6% | 8.4% | 6.0% | 5.6% | 5.7% |
|---|
| Ausnutria Dairy Corp Ltd ($1717) | 4.4% | 6.1% | 10.3% | 7.2% | -1.1% |
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 |
| First Pacific Co Ltd/Hong Kong ($142) | 1.3x | 1.8x | 3.8x | 4.5x | 5.6x |
| 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 |
| |
|---|
| Median (30 companies) | 0.4x | -0.1x | 0.8x | 0.7x | 1.2x |
|---|
| Ausnutria Dairy Corp Ltd ($1717) | -3.5x | -1.4x | 0.8x | 1.7x | 27.9x |
