Kenford Group Holdings Ltd EBITDA dropped on 54.6% and EBITDA Margin decreased slightly on 1.8 pp from 3.7% to 1.9%
29/06/2016 • About Kenford Group Holdings Ltd (
$464) • By InTwits
Kenford Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kenford Group Holdings Ltd is a company in decline: FY2016 revenue growth was -10.6%, 5 years revenue CAGR was -4.4%
- EBITDA Margin is quite volatile: 1.9% in FY2016, 3.7% in FY2015, -3.1% in FY2014, 7.1% in FY2013, 9.9% in FY2012
- Kenford Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 20.9%.
- CAPEX is quite volatile: 8.9 in FY2016, 10.5 in FY2015, 28.5 in FY2014, 27.0 in FY2013, 21.3 in FY2012
- The company has unprofitable business model: ROIC is at -1.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kenford Group Holdings Ltd ($464) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 634.4 | 657.3 | 617.2 | 585.0 | 522.9 | -10.6% |
| Gross Profit | 114.5 | 106.1 | 47.7 | 80.9 | 67.2 | -16.9% |
| SG&A | | 89.2 | 93.1 | 84.6 | 78.9 | -6.6% |
| EBITDA | 62.6 | 46.5 | -18.8 | 21.5 | 9.8 | -54.6% |
| Net Income | 30.9 | 21.3 | -31.6 | 0.8 | -22.5 | -2,942.0% |
Balance Sheet
|
|---|
| Cash | 132.5 | 126.9 | 103.8 | 96.9 | 104.0 | 7.3% |
| Short Term Debt | 83.0 | 64.6 | 62.1 | 44.5 | 47.0 | 5.7% |
| Long Term Debt | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 8.9 | 15.2 | 11.7 | 10.3 | 10.5 | 2.4% |
Ratios
|
|---|
| Revenue growth | -3.2% | 3.6% | -6.1% | -5.2% | -10.6% | |
| EBITDA growth | -34.1% | -25.7% | -140.5% | -214.2% | -54.6% | |
| Gross Margin | 18.0% | 16.1% | 7.7% | 13.8% | 12.8% | -1.0% |
| EBITDA Margin | 9.9% | 7.1% | -3.1% | 3.7% | 1.9% | -1.8% |
| Net Income Margin | 4.9% | 3.2% | -5.1% | 0.1% | -4.3% | -4.4% |
| SG&A, % of revenue | | 13.6% | 15.1% | 14.5% | 15.1% | 0.6% |
| CAPEX, % of revenue | 1.4% | 2.3% | 1.9% | 1.8% | 2.0% | 0.3% |
| ROIC | 10.6% | 6.7% | -7.6% | 1.1% | -1.6% | -2.7% |
| ROE | 9.0% | 5.8% | -8.5% | 0.2% | -6.3% | -6.5% |
| Net Debt/EBITDA | -0.8x | -1.3x | | -2.4x | -5.8x | -3.4x |
Revenue and profitability
Kenford Group Holdings Ltd's Revenue dropped on 10.6%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.8 pp from 3.7% to 1.9% in FY2016.
Gross Margin decreased slightly on 0.98 pp from 13.8% to 12.8% in FY2016. SG&A as a % of Revenue increased slightly on 0.64 pp from 14.5% to 15.1% in FY2016.
Net Income marign decreased on 4.4 pp from 0.14% to -4.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 2.0%. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 1.9%.Kenford Group Holdings Ltd has spent a lot to CAPEX (108% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-1.56%) and ROE (-6.26%). ROIC decreased on 2.7 pp from 1.1% to -1.6% in FY2016. ROE decreased on 6.5 pp from 0.22% to -6.3% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -5.8x and Debt / EBITDA is 4.8x. Net Debt / EBITDA dropped on 3.4x from -2.4x to -5.8x in FY2016. Debt increased on 5.7% while cash increased on 7.3%.
Appendix 1: Peers in Household Products/Wares
Below we provide Kenford Group Holdings Ltd benchmarking against other companies in Household Products/Wares 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lisi Group Holdings Ltd ($526) | | -23.5% | 160.0% | 47.9% | -6.2% |
| Tempus Holdings Ltd ($6880) | 17.3% | 5.5% | 31.1% | 14.7% | |
| Lerado Group Holding Co Ltd ($1225) | 4.1% | -91.1% | 4.8% | 14.3% | |
| Goodbaby International Holdings Ltd ($1086) | 15.5% | -8.0% | 46.0% | 13.7% | |
| Samsonite International SA ($1910) | 13.2% | 15.0% | 15.4% | 3.5% | |
| |
|---|
| Median (9 companies) | 12.3% | 5.5% | 11.3% | 3.5% | -6.2% |
|---|
| Kenford Group Holdings Ltd ($464) | | 3.6% | -6.1% | -5.2% | -10.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tempus Holdings Ltd ($6880) | 68.4% | 64.8% | 64.6% | 65.5% | |
| Carpenter Tan Holdings Ltd ($837) | 66.9% | 67.0% | 65.8% | 64.5% | |
| Biostime International Holdings Ltd ($1112) | 65.9% | 65.2% | 61.9% | 61.9% | |
| Samsonite International SA ($1910) | 53.7% | 53.4% | 52.9% | 52.6% | |
| Goodbaby International Holdings Ltd ($1086) | 19.1% | 22.9% | 25.0% | 29.5% | |
| |
|---|
| Median (9 companies) | 24.5% | 24.3% | 25.6% | 29.5% | 23.3% |
|---|
| Kenford Group Holdings Ltd ($464) | 18.0% | 16.1% | 7.7% | 13.8% | 12.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Carpenter Tan Holdings Ltd ($837) | 49.0% | 48.1% | 48.6% | 46.7% | |
| eForce Holdings Ltd ($943) | -16.9% | -13.0% | -5.8% | 21.9% | |
| Samsonite International SA ($1910) | 15.9% | 16.0% | 14.9% | 15.1% | |
| Biostime International Holdings Ltd ($1112) | 30.4% | 27.6% | 24.3% | 14.8% | |
| King's Flair International Holdings Ltd ($6822) | 8.3% | 7.9% | 9.7% | 14.6% | |
| |
|---|
| Median (9 companies) | 11.8% | 7.9% | 9.7% | 14.6% | -2.7% |
|---|
| Kenford Group Holdings Ltd ($464) | 9.9% | 7.1% | -3.1% | 3.7% | 1.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lerado Group Holding Co Ltd ($1225) | 3.0% | 75.4% | 18.8% | 60.0% | |
| Lisi Group Holdings Ltd ($526) | 7.1% | 11.3% | 6.1% | 13.1% | 4.0% |
| Samsonite International SA ($1910) | 2.1% | 2.8% | 3.0% | 2.8% | |
| Goodbaby International Holdings Ltd ($1086) | 2.9% | 2.8% | 2.6% | 2.6% | |
| Tempus Holdings Ltd ($6880) | 0.9% | 4.0% | 2.8% | 2.4% | |
| |
|---|
| Median (9 companies) | 2.1% | 2.8% | 2.8% | 2.4% | 4.0% |
|---|
| Kenford Group Holdings Ltd ($464) | 1.4% | 2.3% | 1.9% | 1.8% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| King's Flair International Holdings Ltd ($6822) | 39.4% | 41.9% | 49.5% | 46.7% | |
| Samsonite International SA ($1910) | 20.8% | 21.8% | 21.1% | 20.3% | |
| Carpenter Tan Holdings Ltd ($837) | 30.3% | 24.6% | 20.7% | 17.6% | |
| Biostime International Holdings Ltd ($1112) | 41.7% | 39.9% | 24.7% | 7.3% | |
| eForce Holdings Ltd ($943) | -6.4% | -7.0% | -5.1% | 7.0% | |
| |
|---|
| Median (9 companies) | 18.2% | 8.8% | 3.9% | 7.0% | -2.6% |
|---|
| Kenford Group Holdings Ltd ($464) | 10.6% | 6.7% | -7.6% | 1.1% | -1.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lisi Group Holdings Ltd ($526) | 3.4x | | 36.8x | 9.6x | |
| Biostime International Holdings Ltd ($1112) | -0.4x | -0.0x | -0.0x | 8.8x | |
| Goodbaby International Holdings Ltd ($1086) | -1.3x | -0.5x | 5.9x | 2.1x | |
| Samsonite International SA ($1910) | -0.4x | -0.6x | -0.2x | -0.3x | |
| eForce Holdings Ltd ($943) | | | | -1.2x | |
| |
|---|
| Median (8 companies) | -0.8x | -0.6x | -0.5x | -0.8x | |
|---|
| Kenford Group Holdings Ltd ($464) | -0.8x | -1.3x | | -2.4x | -5.8x |
