Bossini International Hldg revenue dropped on 26.6% and EBITDA Margin decreased on 3.2 pp from -6.0% to -9.3%
16/09/2020 • About Bossini International Hldg (
$592) • By InTwits
Bossini International Hldg reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bossini International Hldg is a company in decline: FY2020 revenue growth was -26.6%, 5 years revenue CAGR was -15.4%
- The company operates at negative EBITDA Margin: -9.3%
- Bossini International Hldg spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.0%. Average EBITDA Margin for the same period was -0.3%
- Bossini International Hldg has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 9.7%.
- CAPEX is quite volatile: 20 HKDm in FY2020, 29 HKDm in FY2019, 24 HKDm in FY2018, 16 HKDm in FY2017, 55 HKDm in FY2016
- The company has unprofitable business model: ROIC is -45.9%
- It operates with high leverage: Net Debt/EBITDA is 7.5x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 26.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 6.4 pp from 12.0% to 18.4% in FY2020. EBITDA Margin stuck to a declining trend at -3.9 pp per annum in the last 5 years.
Gross Margin decreased on 2.6 pp from 51.5% to 48.9% in FY2020. During the last 5 years Gross Margin topped in FY2018 at 52.9% and was declining since that time. SG&A as a % of Revenue increased on 7.9 pp from 58.6% to 66.5% in FY2020. SG&A as a % of Revenue grew at 4.9 pp per annum in FY2016-FY2020.
Net Income margin dropped on 24.3 pp from -9.3% to -33.7% in FY2020. Net Income margin followed a declining trend at -10.2 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.8% in FY2020. Bossini International Hldg's CAPEX/Revenue increased slightly on 1.0 pp from 0.79% in FY2017 to 1.8% in FY2020. It's average level of CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at negative ROIC (-45.9%) and ROE (-74.9%). ROIC dropped on 31.3 pp from -14.7% to -45.9% in FY2020. ROE dropped on 57.3 pp from -17.7% to -74.9% in FY2020. ROIC followed a declining trend at -12.4 pp per annum in the last 5 years. ROE followed a declining trend at -23.3 pp per annum in FY2016-FY2020.
Leverage (Debt)
Debt level is 7.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2020. Debt surged on 594% while cash increased on 9.5%.
Bossini International Hldg has short term refinancing risk: cash is only 78.0% of short term debt.
Financial and operational results
FY ended 30/06/2020
Bossini International Hldg ($592) key annual financial indicators| mln. HKD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 2,319 | 2,020 | 1,958 | 1,488 | 1,092 | -26.6% |
| Gross Profit | 1,107 | 1,023 | 1,036 | 767 | 534 | -30.4% |
| SG&A | 1,059 | 1,037 | 1,039 | 872 | 726 | -16.7% |
| EBITDA | 130 | 59 | -21 | -90 | -101 | |
| Net Income | 292 | 5 | -29 | -139 | -368 | |
Balance Sheet
|
|---|
| Cash | 511 | 395 | 340 | 161 | 176 | 9.5% |
| Short Term Debt | 31 | 26 | 19 | 52 | 226 | 336.9% |
| Long Term Debt | 0 | 0 | 0 | 0 | 133 | |
Cash flow
|
|---|
| Capex | 55 | 16 | 24 | 29 | 20 | -31.0% |
Ratios
|
|---|
| Revenue growth | -8.1% | -12.9% | -3.1% | -24.0% | -26.6% | |
| EBITDA growth | -26.9% | -54.9% | -135.4% | 332.3% | 12.5% | |
|
|---|
| Gross Margin | 47.7% | 50.7% | 52.9% | 51.5% | 48.9% | -2.6% |
| EBITDA Margin | 5.6% | 2.9% | -1.1% | -6.0% | -9.3% | -3.2% |
| SG&A, % of revenue | 45.7% | 51.3% | 53.1% | 58.6% | 66.5% | 7.9% |
| Net Income Margin | 12.6% | 0.2% | -1.5% | -9.3% | -33.7% | -24.3% |
| CAPEX, % of revenue | 2.4% | 0.8% | 1.2% | 1.9% | 1.8% | -0.1% |
|
|---|
| ROIC | 7.8% | 1.5% | -5.6% | -14.7% | -45.9% | -31.3% |
| ROE | 32.6% | 0.5% | -3.2% | -17.7% | -74.9% | -57.3% |
| Net Debt/EBITDA | -3.7x | -6.3x | | | |
Peers in Retail
Below we provide Bossini International Hldg benchmarking against other companies in Retail 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| New World Department Store China Ltd ($825) | -9.2% | -4.8% | 9.7% | -7.9% | - |
| Jintian Pharmaceutical Group Ltd ($2211) | -29.7% | -20.7% | -1.6% | -8.1% | - |
| Esprit Holdings Ltd ($330) | -8.4% | -10.4% | -3.1% | -16.3% | - |
| |
|---|
| Median (3 companies) | -3.8% | -4.8% | 4.0% | -8.1% | - |
|---|
| Bossini International Hldg ($592) | - | -12.9% | -3.1% | -24.0% | -26.6% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Esprit Holdings Ltd ($330) | 50.2% | 51.6% | 51.3% | 50.3% | - |
| Jintian Pharmaceutical Group Ltd ($2211) | 25.9% | 17.8% | 14.3% | 13.5% | - |
| |
|---|
| Median (2 companies) | 42.6% | 36.5% | 49.3% | 31.9% | - |
|---|
| Bossini International Hldg ($592) | 47.7% | 50.7% | 52.9% | 51.5% | 48.9% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| New World Department Store China Ltd ($825) | 15.7% | 15.9% | 10.8% | 12.0% | - |
| Jintian Pharmaceutical Group Ltd ($2211) | -0.7% | -19.3% | -31.7% | -10.6% | - |
| Esprit Holdings Ltd ($330) | -0.4% | 2.7% | -11.2% | -12.3% | - |
| |
|---|
| Median (3 companies) | 6.8% | 7.2% | -0.2% | -10.6% | - |
|---|
| Bossini International Hldg ($592) | 5.6% | 2.9% | -1.1% | -6.0% | -9.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| New World Department Store China Ltd ($825) | 5.5% | 4.9% | 3.9% | 3.3% | - |
| Esprit Holdings Ltd ($330) | 1.5% | 1.6% | 2.0% | 1.3% | - |
| Jintian Pharmaceutical Group Ltd ($2211) | - | 4.3% | 1.9% | 0.1% | - |
| |
|---|
| Median (3 companies) | 2.0% | 2.5% | 1.9% | 1.3% | - |
|---|
| Bossini International Hldg ($592) | 2.4% | 0.8% | 1.2% | 1.9% | 1.8% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| New World Department Store China Ltd ($825) | 3.3% | 3.6% | 1.9% | 2.5% | - |
| Jintian Pharmaceutical Group Ltd ($2211) | -2.4% | -21.0% | -40.8% | -15.1% | - |
| Esprit Holdings Ltd ($330) | -6.0% | -1.2% | -22.4% | -25.8% | - |
| |
|---|
| Median (3 companies) | 6.3% | 3.6% | -10.3% | -15.1% | - |
|---|
| Bossini International Hldg ($592) | 7.8% | 1.5% | -5.6% | -14.7% | -45.9% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| New World Department Store China Ltd ($825) | -0.3x | -0.4x | -0.1x | -0.3x | - |
| |
|---|
| Median (1 company) | -0.4x | -1.6x | -0.9x | -0.3x | - |
|---|
