Vitasoy International Holdings Ltd reports 42.6% Net Income growth and 9.9% Revenue growth
23/06/2016 • About Vitasoy International Holdings Ltd (
$345) • By InTwits
Vitasoy International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vitasoy International Holdings Ltd is a growth stock: FY2016 revenue growth was 9.9%, 5 year revenue CAGR was 10.8% at FY2016 ROIC 23.5%
- EBITDA Margin is relatively stable: 14.5% in FY2016 vs. 14.4% in FY2015 vs. 14.9% in FY2012
- Vitasoy International Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.7%. At the same time it's in pair with industry average of 11.0%.
- CAPEX is quite volatile: 669 in FY2016, 560 in FY2015, 231 in FY2014, 171 in FY2013, 414 in FY2012
- The company has highly profitable business model: ROIC is at 23.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vitasoy International Holdings Ltd ($345) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,717 | 4,051 | 4,494 | 5,052 | 5,552 | 9.9% |
| Gross Profit | 1,760 | 1,925 | 2,175 | 2,511 | 2,826 | 12.5% |
| SG&A | 1,155 | 1,298 | 1,496 | 1,756 | 1,965 | 11.9% |
| EBITDA | 553 | 617 | 652 | 726 | 808 | 11.2% |
| Net Income | 281 | 301 | 307 | 372 | 531 | 42.6% |
Balance Sheet
|
|---|
| Cash | 206 | 223 | 320 | 335 | 271 | -18.9% |
| Short Term Debt | 309 | 152 | 53 | 127 | 141 | 10.9% |
| Long Term Debt | 89 | 100 | 73 | 31 | 209 | 576.8% |
Cash flow
|
|---|
| Capex | 414 | 171 | 231 | 560 | 669 | 19.3% |
Ratios
|
|---|
| Revenue growth | 11.6% | 9.0% | 10.9% | 12.4% | 9.9% | |
| EBITDA growth | 2.8% | 11.7% | 5.6% | 11.4% | 11.2% | |
| Gross Margin | 47.4% | 47.5% | 48.4% | 49.7% | 50.9% | 1.2% |
| EBITDA Margin | 14.9% | 15.2% | 14.5% | 14.4% | 14.5% | 0.2% |
| Net Income Margin | 7.6% | 7.4% | 6.8% | 7.4% | 9.6% | 2.2% |
| SG&A, % of revenue | 31.1% | 32.0% | 33.3% | 34.8% | 35.4% | 0.6% |
| CAPEX, % of revenue | 11.1% | 4.2% | 5.1% | 11.1% | 12.0% | 1.0% |
| ROIC | 20.8% | 20.6% | 21.7% | 23.5% | 23.5% | -0.0% |
| ROE | 19.3% | 19.3% | 18.2% | 20.3% | 25.8% | 5.5% |
| Net Debt/EBITDA | 0.3x | 0.0x | -0.3x | -0.2x | 0.1x | 0.3x |
Revenue and profitability
Vitasoy International Holdings Ltd's Revenue increased on 9.9%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.93 pp from 36.4% to 37.3% in FY2016.
Gross Margin increased slightly on 1.2 pp from 49.7% to 50.9% in FY2016. SG&A as a % of Revenue increased slightly on 0.64 pp from 34.8% to 35.4% in FY2016.
Net Income marign increased on 2.2 pp from 7.4% to 9.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Vitasoy International Holdings Ltd had CAPEX/Revenue of 12.0%. The company showed CAPEX/Revenue growth of 7.8 pp from 4.2% in FY2013 to 12.0% in FY2016. For the last three years the average CAPEX/Revenue was 9.4%.The company maintained rich investment policy and has spent a big chunk of EBITDA (82.8%) to CAPEX.
Return on investment
The company operates at high and attractive ROIC (23.47%) and ROE (25.77%). ROIC showed almost no change in FY2016. ROE increased on 5.5 pp from 20.3% to 25.8% in FY2016.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and 0.4x Debt / EBITDA. Net Debt / EBITDA surged on 0.3x from -0.2x to 0.1x in FY2016. Debt jumped on 122% while cash dropped on 18.9%.
Appendix 1: Peers in Beverages
Below you can find Vitasoy International Holdings Ltd benchmarking vs. other companies in Beverages 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino Distillery Group Ltd ($39) | -62.4% | -34.9% | -15.0% | 882.1% | |
| China Huiyuan Juice Group Ltd ($1886) | 4.1% | 13.1% | 2.0% | 23.7% | |
| Besunyen Holdings Co Ltd ($926) | -43.5% | 2.6% | 15.7% | 17.5% | |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 7.7% | 15.4% | -1.8% | 7.7% | |
| China Tontine Wines Group Ltd ($389) | -20.7% | -73.3% | 62.7% | 2.6% | |
| |
|---|
| Median (14 companies) | -1.2% | -13.0% | 2.0% | -5.1% | -15.1% |
|---|
| Vitasoy International Holdings Ltd ($345) | | 9.0% | 10.9% | 12.4% | 9.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Besunyen Holdings Co Ltd ($926) | 82.5% | 83.3% | 84.3% | 89.7% | |
| Tenfu Cayman Holdings Co Ltd ($6868) | 64.1% | 61.2% | 62.2% | 61.4% | |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 81.4% | 73.2% | 62.7% | 60.3% | |
| JLF Investment Co Ltd ($472) | 50.9% | 48.7% | 42.4% | 41.8% | |
| San Miguel Brewery Hong Kong Ltd ($236) | 42.8% | 42.2% | 42.8% | 41.7% | |
| |
|---|
| Median (14 companies) | 44.5% | 34.7% | 34.7% | 37.2% | 34.8% |
|---|
| Vitasoy International Holdings Ltd ($345) | 47.4% | 47.5% | 48.4% | 49.7% | 50.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 73.3% | 73.2% | 69.2% | 52.8% | |
| China Tianyi Holdings Ltd ($756) | 28.4% | 26.1% | 29.7% | 23.0% | |
| Tenfu Cayman Holdings Co Ltd ($6868) | 27.5% | 25.3% | 26.1% | 22.5% | |
| China Huiyuan Juice Group Ltd ($1886) | 15.2% | 21.7% | 11.3% | 18.3% | |
| Yantai North Andre Juice Co ($2218) | 14.1% | 11.9% | 15.5% | 15.7% | |
| |
|---|
| Median (14 companies) | 17.3% | 9.6% | 10.6% | 8.8% | -5.4% |
|---|
| Vitasoy International Holdings Ltd ($345) | 14.9% | 15.2% | 14.5% | 14.4% | 14.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | 26.8% | 52.2% | 81.8% | 75.8% | |
| China Huiyuan Juice Group Ltd ($1886) | 11.7% | 7.4% | 10.5% | 14.9% | |
| Sino Distillery Group Ltd ($39) | 32.4% | 6.5% | 0.4% | 12.0% | |
| JLF Investment Co Ltd ($472) | 17.7% | 9.1% | 9.4% | 9.5% | |
| Tenfu Cayman Holdings Co Ltd ($6868) | 18.3% | 8.8% | 12.0% | 9.2% | |
| |
|---|
| Median (14 companies) | 10.1% | 7.3% | 8.8% | 5.4% | 1.9% |
|---|
| Vitasoy International Holdings Ltd ($345) | 11.1% | 4.2% | 5.1% | 11.1% | 12.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tenfu Cayman Holdings Co Ltd ($6868) | 19.4% | 17.9% | 15.7% | 11.0% | |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 23.3% | 20.3% | 14.9% | 11.0% | |
| Tsingtao Brewery Co Ltd ($168) | 13.4% | 12.0% | 12.2% | 6.7% | |
| Besunyen Holdings Co Ltd ($926) | -24.2% | -8.9% | 3.2% | 4.1% | |
| Yantai North Andre Juice Co ($2218) | 6.5% | 3.2% | 4.2% | 4.1% | |
| |
|---|
| Median (14 companies) | 9.6% | 3.0% | 2.7% | 2.6% | -6.9% |
|---|
| Vitasoy International Holdings Ltd ($345) | 20.8% | 20.6% | 21.7% | 23.5% | 23.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Huiyuan Juice Group Ltd ($1886) | 5.4x | 4.3x | 7.9x | 4.3x | |
| San Miguel Brewery Hong Kong Ltd ($236) | | 2.0x | 1.0x | 3.8x | |
| Yantai North Andre Juice Co ($2218) | 2.3x | 2.4x | 2.2x | 3.0x | |
| China Tianyi Holdings Ltd ($756) | -1.0x | -0.8x | 0.9x | 1.1x | |
| Tenfu Cayman Holdings Co Ltd ($6868) | -1.0x | -0.2x | 0.8x | 0.1x | |
| |
|---|
| Median (9 companies) | -1.0x | 1.9x | 1.0x | 0.1x | |
|---|
| Vitasoy International Holdings Ltd ($345) | 0.3x | 0.0x | -0.3x | -0.2x | 0.1x |
