San Miguel Brewery Hong Kong Ltd reports 195% EBITDA growth in 2016 while 4.9% Revenue decline
24/02/2017 • About San Miguel Brewery Hong Kong Ltd (
$236) • By InTwits
San Miguel Brewery Hong Kong Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- San Miguel Brewery Hong Kong Ltd is a company in decline: FY2016 revenue growth was -4.9%, 5 years revenue CAGR was -4.6%
- EBITDA Margin is quite volatile: 6.1% in FY2016, 2.0% in FY2015, 7.7% in FY2014, 6.7% in FY2013, -4.4% in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.0x while industry average is 1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
San Miguel Brewery Hong Kong Ltd ($236) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 686.4 | 687.1 | 728.6 | 569.5 | 541.4 | -4.9% |
| Gross Profit | 293.9 | 290.3 | 311.8 | 237.7 | 238.3 | 0.3% |
| SG&A | 358.0 | 295.5 | 315.2 | 281.0 | 261.2 | -7.0% |
| EBITDA | -29.9 | 45.9 | 55.8 | 11.2 | 33.0 | 194.5% |
| Net Income | 237.7 | 26.0 | 35.3 | -16.1 | 8.7 | |
Balance Sheet
|
|---|
| Cash | 100.9 | 112.7 | 135.6 | 148.6 | 157.7 | 6.1% |
| Short Term Debt | 86.7 | 12.7 | 50.9 | 0.0 | 25.4 | |
| Long Term Debt | 145.1 | 190.8 | 140.0 | 190.7 | 165.4 | -13.3% |
Cash flow
|
|---|
| Capex | 14.2 | 5.0 | 11.3 | 5.0 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 0.4% | 0.1% | 6.0% | -21.8% | -4.9% | |
| EBITDA growth | -27.1% | -253.6% | 21.6% | -79.9% | 194.5% | |
| Gross Margin | 42.8% | 42.2% | 42.8% | 41.7% | 44.0% | 2.3% |
| EBITDA Margin | -4.4% | 6.7% | 7.7% | 2.0% | 6.1% | 4.1% |
| Net Income Margin | 34.6% | 3.8% | 4.8% | -2.8% | 1.6% | 4.4% |
| SG&A, % of revenue | 52.2% | 43.0% | 43.3% | 49.3% | 48.2% | -1.1% |
| CAPEX, % of revenue | 2.1% | 0.7% | 1.5% | 0.9% | | -0.9% |
| ROIC | -6.8% | 2.8% | 3.9% | -2.0% | 1.2% | 3.3% |
| ROE | 55.6% | 4.7% | 6.0% | -2.7% | 1.5% | 4.2% |
| Net Debt/EBITDA | | 2.0x | 1.0x | 3.8x | 1.0x | -2.8x |
Revenue and profitability
San Miguel Brewery Hong Kong Ltd's Revenue decreased on 4.9%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.1 pp from 2.0% to 6.1% in FY2016.
Gross Margin increased on 2.3 pp from 41.7% to 44.0% in FY2016. SG&A as a % of Revenue decreased slightly on 1.1 pp from 49.3% to 48.2% in FY2016.
Net Income marign increased on 4.4 pp from -2.8% to 1.6% in FY2016.
Return on investment
The company operates at low ROIC (1.23%) and ROE (1.50%). ROIC increased on 3.3 pp from -2.0% to 1.2% in FY2016. ROE increased on 4.2 pp from -2.7% to 1.5% in FY2016.
Leverage (Debt)
Debt level is 1.0x Net Debt / EBITDA and 5.8x Debt / EBITDA. Net Debt / EBITDA dropped on 2.8x from 3.8x to 1.0x in FY2016. Debt showed almost no change in FY2016 while cash increased on 6.1%.
Appendix 1: Peers in Beverages
Below we provide San Miguel Brewery Hong Kong Ltd benchmarking against other companies in Beverages 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 |
|---|
| 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 (15 companies) | -7.5% | -13.0% | 2.0% | -4.7% | 9.9% |
|---|
| San Miguel Brewery Hong Kong Ltd ($236) | | 0.1% | 6.0% | -21.8% | -4.9% |
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 (15 companies) | 44.8% | 34.7% | 34.7% | 36.1% | 34.8% |
|---|
| San Miguel Brewery Hong Kong Ltd ($236) | 42.8% | 42.2% | 42.8% | 41.7% | 44.0% |
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% | 22.1% |
| 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 (15 companies) | 17.3% | 10.5% | 11.3% | 13.7% | 4.2% |
|---|
| San Miguel Brewery Hong Kong Ltd ($236) | -4.4% | 6.7% | 7.7% | 2.0% | 6.1% |
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% | 25.1% |
| China Haisheng Juice Holdings Co Ltd ($359) | 4.8% | 6.3% | 15.3% | 26.0% | |
| 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% |
| |
|---|
| Median (15 companies) | 11.1% | 7.3% | 8.8% | 6.1% | 9.2% |
|---|
| San Miguel Brewery Hong Kong Ltd ($236) | 2.1% | 0.7% | 1.5% | 0.9% | |
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 (15 companies) | 12.7% | 3.7% | 2.7% | 3.2% | 2.6% |
|---|
| San Miguel Brewery Hong Kong Ltd ($236) | -6.8% | 2.8% | 3.9% | -2.0% | 1.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Haisheng Juice Holdings Co Ltd ($359) | 11.9x | 16.2x | 8.9x | 9.9x | |
| China Huiyuan Juice Group Ltd ($1886) | 5.4x | 4.3x | 7.9x | 4.3x | |
| 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 | 1.0x |
| 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 | 1.0x |
|---|
| San Miguel Brewery Hong Kong Ltd ($236) | | 2.0x | 1.0x | 3.8x | 1.0x |
