China Culiangwang Beverages Holdings Ltd reports 74.1% CAPEX decline in 2016 and 21.9% Revenue decline
26/07/2016 • About China Culiangwang Beverages Holdings Ltd (
$904) • By InTwits
China Culiangwang Beverages Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Culiangwang Beverages Holdings Ltd is a company in decline: FY2016 revenue growth was -21.9%, 5 years revenue CAGR was -28.9%
- The company operates at negative EBITDA Margin: -256.7%
- China Culiangwang Beverages Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 52.3%. At the same time it's a lot of higher than industry average of 8.3%.
- CAPEX is quite volatile: 102 in FY2016, 395 in FY2015, 523 in FY2014, 1,141 in FY2013, 682 in FY2012
- The company has unprofitable business model: ROIC is at -26.1%
- It operates with high leverage: Net Debt/EBITDA is 4.3x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Culiangwang Beverages Holdings Ltd ($904) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,548 | 2,184 | 640 | 521 | 407 | -21.9% |
| Gross Profit | 1,133 | 733 | 49 | 94 | 57 | -39.2% |
| SG&A | 443 | 440 | 245 | 211 | 634 | 200.0% |
| EBITDA | 991 | 505 | -290 | -126 | -1,045 | |
| Net Income | 520 | 81 | -475 | -270 | -961 | |
Balance Sheet
|
|---|
| Cash | 1,683 | 423 | 295 | 142 | 1,962 | 1,284.1% |
| Short Term Debt | 1,314 | 1,370 | 425 | 1,210 | 1,377 | 13.8% |
| Long Term Debt | 0 | 0 | 1,202 | 517 | 140 | -72.9% |
Cash flow
|
|---|
| Capex | 682 | 1,141 | 523 | 395 | 102 | -74.1% |
Ratios
|
|---|
| Revenue growth | 14.0% | -14.3% | -70.7% | -18.6% | -21.9% | |
| EBITDA growth | 12.1% | -49.0% | -157.4% | -56.5% | 727.7% | |
| Gross Margin | 44.5% | 33.6% | 7.6% | 18.1% | 14.1% | -4.0% |
| EBITDA Margin | 38.9% | 23.1% | -45.3% | -24.2% | -256.7% | -232.5% |
| Net Income Margin | 20.4% | 3.7% | -74.2% | -51.7% | -236.2% | -184.4% |
| SG&A, % of revenue | 17.4% | 20.1% | 38.3% | 40.6% | 155.9% | 115.3% |
| CAPEX, % of revenue | 26.8% | 52.2% | 81.8% | 75.8% | 25.1% | -50.7% |
| ROIC | 15.3% | 5.1% | -9.5% | -5.8% | -26.1% | -20.3% |
| ROE | 14.5% | 2.1% | -12.7% | -7.6% | -29.2% | -21.6% |
| Net Debt/EBITDA | -0.4x | 1.9x | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 21.9%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 233 pp from -24.2% to -257% in FY2016.
Gross Margin decreased on 4.0 pp from 18.1% to 14.1% in FY2016. SG&A as a % of Revenue jumped on 115 pp from 40.6% to 156% in FY2016.
Net Income marign dropped on 184 pp from -51.7% to -236% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 25.1% in FY2016. China Culiangwang Beverages Holdings Ltd's CAPEX/Revenue dropped on 27.1 pp from 52.2% in FY2013 to 25.1% in FY2016. Average CAPEX/Revenue for the last three years was 60.9%.
Return on investment
The company operates at negative ROIC (-26.10%) and ROE (-29.22%). ROIC dropped on 20.3 pp from -5.8% to -26.1% in FY2016. ROE dropped on 21.6 pp from -7.6% to -29.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 12.2% while cash jumped on 1,284%.
Appendix 1: Peers in Beverages
Below you can find China Culiangwang Beverages 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% | |
| Vitasoy International Holdings Ltd ($345) | | 9.0% | 10.9% | 12.4% | 9.9% |
| Tibet 5100 Water Resources Holdings Ltd ($1115) | 7.7% | 15.4% | -1.8% | 7.7% | |
| |
|---|
| Median (14 companies) | -4.6% | -8.1% | 3.1% | -3.9% | 9.9% |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | | -14.3% | -70.7% | -18.6% | -21.9% |
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% | |
| Vitasoy International Holdings Ltd ($345) | 47.4% | 47.5% | 48.4% | 49.7% | 50.9% |
| JLF Investment Co Ltd ($472) | 50.9% | 48.7% | 42.4% | 41.8% | |
| |
|---|
| Median (14 companies) | 44.8% | 37.7% | 36.6% | 38.5% | 34.8% |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | 44.5% | 33.6% | 7.6% | 18.1% | 14.1% |
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) | 15.2% | 9.6% | 11.3% | 11.6% | 4.2% |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | 38.9% | 23.1% | -45.3% | -24.2% | -256.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Vitasoy International Holdings Ltd ($345) | 11.1% | 4.2% | 5.1% | 11.1% | 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% | 6.5% | 7.3% | 5.4% | 7.0% |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | 26.8% | 52.2% | 81.8% | 75.8% | 25.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vitasoy International Holdings Ltd ($345) | 20.8% | 20.6% | 21.7% | 23.5% | 23.5% |
| 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% | |
| |
|---|
| Median (14 companies) | 9.6% | 3.0% | 3.2% | 3.2% | 2.6% |
|---|
| China Culiangwang Beverages Holdings Ltd ($904) | 15.3% | 5.1% | -9.5% | -5.8% | -26.1% |
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 (10 companies) | -1.0x | 0.0x | 0.9x | -0.0x | 5.5x |
|---|
