Kohinoor Foods Net Debt / EBITDA jumped on 290.5x from 6.1x to 296.6x in 2015 while Revenue decreased on 5.9%
28-05-2015 • About Kohinoor Foods (
$KOHINOOR) • By InTwits
Kohinoor Foods reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kohinoor Foods is a company in decline: FY2015 revenue growth was -5.9%, 5 years revenue CAGR was -3.2%
- EBITDA Margin is quite volatile: 0.2% in FY2015, 11.2% in FY2014, 10.9% in FY2013, 4.7% in FY2012, 12.7% in FY2011
- Kohinoor Foods has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 14.7%.
- CAPEX is quite volatile: 37.4 in FY2015, 141 in FY2014, 187 in FY2013, 169 in FY2012, 374 in FY2011
- The company has unprofitable business model: ROIC is at -1.3%
- It operates with high leverage: Net Debt/EBITDA is 296.6x while industry average is 33.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kohinoor Foods ($KOHINOOR) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10,215 | 10,764 | 12,211 | 14,186 | 13,347 | -5.9% |
| EBITDA | 1,300 | 511 | 1,325 | 1,588 | 30 | -98.1% |
| Net Income | -90 | 1,887 | 58 | 231 | -944 | -508.3% |
Balance Sheet
|
|---|
| Cash | 107 | 51 | 75 | 81 | 160 | 97.8% |
| Short Term Debt | 8,849 | 8,802 | 9,756 | 9,228 | 8,992 | -2.6% |
| Long Term Debt | 1,319 | 1,062 | 672 | 485 | 188 | -61.2% |
Cash flow
|
|---|
| Capex | 374 | 169 | 187 | 141 | 37 | -73.4% |
Ratios
|
|---|
| Revenue growth | -34.9% | 5.4% | 13.4% | 16.2% | -5.9% | |
| EBITDA growth | 21.8% | -60.7% | 159.3% | 19.9% | -98.1% | |
| EBITDA Margin | 12.7% | 4.7% | 10.9% | 11.2% | 0.2% | -11.0% |
| Net Income Margin | -0.9% | 17.5% | 0.5% | 1.6% | -7.1% | -8.7% |
| CAPEX, % of revenue | 3.7% | 1.6% | 1.5% | 1.0% | 0.3% | -0.7% |
| ROIC | 11.2% | 3.1% | 8.8% | 10.3% | -1.3% | -11.5% |
| ROE | -5.2% | 76.4% | 1.7% | 5.8% | -22.5% | -28.3% |
| Net Debt/EBITDA | 7.7x | 19.2x | 7.8x | 6.1x | 296.6x | 290.5x |
Revenue and profitability
Kohinoor Foods's Revenue decreased on 5.9% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 11.0 pp from 11.2% to 0.23% in FY2015.
Net Income marign decreased on 8.7 pp from 1.6% to -7.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Kohinoor Foods's CAPEX/Revenue was 0.28% in FY2015. CAPEX/Revenue decreased slightly on 1.3 pp from 1.6% in FY2012 to 0.28% in FY2015. Average CAPEX/Revenue for the last three years was 0.93%.Battling declining revenue Kohinoor Foods made large investments to CAPEX (123% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-1.29%) and ROE (-22.51%). ROIC dropped on 11.5 pp from 10.3% to -1.3% in FY2015. ROE dropped on 28.3 pp from 5.8% to -22.5% in FY2015.
Leverage (Debt)
Debt level is 296.6x Net Debt / EBITDA and 301.9x Debt / EBITDA. Net Debt / EBITDA jumped on 290.5x from 6.1x to 296.6x in FY2015. Debt decreased on 5.5% in FY2015 while cash jumped on 97.8% in FY2015.
Appendix 1: Peers in Other Agricultural Products
Below you can find Kohinoor Foods benchmarking vs. other companies in Other Agricultural Products 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unique Organics ($UNIQUEO) | | 102.1% | 35.2% | 51.2% | -19.9% |
| Kaveri Seed Company ($KSCL) | | 59.4% | 91.2% | 42.0% | 14.8% |
| Freshtrop Fruits ($FRSHTRP) | -57.2% | 14.7% | 43.8% | 29.1% | |
| Olympic Oil Industries ($OLYOI) | -98.4% | 1,600.6% | 160.6% | 21.1% | |
| Anik Industries ($ANIKINDS) | -26.6% | 26.0% | -21.3% | 14.6% | |
| |
|---|
| Median (9 companies) | -57.9% | 51.2% | 35.2% | 14.6% | -0.8% |
|---|
| Kohinoor Foods ($KOHINOOR) | | 5.4% | 13.4% | 16.2% | -5.9% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Indrayani Biotech ($INDRANIB) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Avt Natural Products ($AVTNPL) | 17.3% | 37.6% | 30.8% | 25.9% | |
| Kaveri Seed Company ($KSCL) | 23.0% | 20.7% | 19.6% | 21.9% | 26.7% |
| Freshtrop Fruits ($FRSHTRP) | 7.8% | 9.3% | 8.9% | 9.8% | |
| Vikas Granaries ($VIKASGRAN) | 30.4% | 10.6% | 14.2% | 9.8% | |
| Agro Tech Foods ($ATFL) | 3.9% | 7.6% | 8.3% | 9.2% | 8.0% |
| |
|---|
| Median (7 companies) | 5.9% | 7.6% | 8.3% | 9.8% | 8.0% |
|---|
| Kohinoor Foods ($KOHINOOR) | 12.7% | 4.7% | 10.9% | 11.2% | 0.2% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Agro Tech Foods ($ATFL) | 4.2% | 4.1% | 6.0% | 6.3% | 5.6% |
| Avt Natural Products ($AVTNPL) | 2.0% | 2.3% | 5.0% | 3.3% | |
| Kaveri Seed Company ($KSCL) | 5.4% | 2.9% | 5.9% | 2.5% | 7.1% |
| |
|---|
| Median (3 companies) | 3.2% | 1.0% | 5.0% | 3.3% | 6.3% |
|---|
| Kohinoor Foods ($KOHINOOR) | 3.7% | 1.6% | 1.5% | 1.0% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kaveri Seed Company ($KSCL) | 21.0% | 27.5% | 41.1% | 46.8% | 45.9% |
| Avt Natural Products ($AVTNPL) | 19.1% | 58.2% | 41.5% | 32.8% | |
| Agro Tech Foods ($ATFL) | 13.7% | 24.0% | 25.3% | 21.2% | 13.9% |
| Indrayani Biotech ($INDRANIB) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Himalya International ($HIMIN) | 12.8% | 9.4% | 10.2% | | |
| |
|---|
| Median (13 companies) | 12.8% | 9.2% | 9.3% | 27.0% | 13.9% |
|---|
| Kohinoor Foods ($KOHINOOR) | 11.2% | 3.1% | 8.8% | 10.3% | -1.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Agro Tech Foods ($ATFL) | -1.6x | -0.8x | -0.2x | 0.1x | 0.3x |
| Freshtrop Fruits ($FRSHTRP) | 7.0x | 3.3x | 2.5x | 0.0x | |
| Himalya International ($HIMIN) | 3.3x | 4.5x | 2.9x | 0.0x | |
| Flex Foods ($FLEXFO) | 0.8x | 0.8x | 0.9x | 0.0x | |
| Unique Organics ($UNIQUEO) | | | 0.0x | 0.0x | 0.0x |
| |
|---|
| Median (10 companies) | 2.6x | 2.1x | 1.5x | 0.0x | 0.0x |
|---|
| Kohinoor Foods ($KOHINOOR) | 7.7x | 19.2x | 7.8x | 6.1x | 296.6x |
