United Breweries Net Income jumped on 245% in 2015 and EBITDA Margin increased on 2.9 pp from 10.3% to 13.3%
28-05-2015 • About United Breweries (
$UBL) • By InTwits
United Breweries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- United Breweries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.7%. At the same time it's a lot of higher than industry average of 6.9%.
- CAPEX is quite volatile: 4,099 in FY2015, 1,895 in FY2014, 1,081 in FY2013, 1,630 in FY2012, 1,275 in FY2011
- The company has highly profitable business model: ROIC is at 14.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
United Breweries ($UBL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 30,598 | 35,593 | 38,987 | 42,297 | 46,881 | 10.8% |
| EBITDA | 3,903 | 4,143 | 4,793 | 4,373 | 6,221 | 42.3% |
| Net Income | 1,475 | 1,268 | 1,721 | 753 | 2,598 | 245.3% |
Balance Sheet
|
|---|
| Cash | 1,115 | 1,708 | 1,068 | 413 | 131 | -68.2% |
| Short Term Debt | 5,936 | 5,888 | 5,578 | 7,046 | 3,248 | -53.9% |
| Long Term Debt | 2,747 | 4,028 | 7,432 | 5,276 | 5,116 | -3.0% |
Cash flow
|
|---|
| Capex | 4,401 | 3,814 | 3,801 | 2,121 | 4,075 | 92.1% |
Ratios
|
|---|
| Revenue growth | -47.2% | 16.3% | 9.5% | 8.5% | 10.8% | |
| EBITDA growth | 64.9% | 6.1% | 15.7% | -8.8% | 42.3% | |
| EBITDA Margin | 12.8% | 11.6% | 12.3% | 10.3% | 13.3% | 2.9% |
| Net Income Margin | 4.8% | 3.6% | 4.4% | 1.8% | 5.5% | 3.8% |
| CAPEX, % of revenue | 14.4% | 10.7% | 9.8% | 5.0% | 8.7% | 3.7% |
| ROIC | 12.4% | 11.5% | 11.6% | 8.1% | 14.3% | 6.2% |
| ROE | 14.7% | 10.6% | 12.4% | 4.7% | 14.8% | 10.0% |
| Net Debt/EBITDA | 1.9x | 2.0x | 2.5x | 2.7x | 1.3x | -1.4x |
Revenue and profitability
United Breweries's Revenue surged on 10.8% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.9 pp from 10.3% to 13.3% in FY2015.
Net Income marign increased on 3.8 pp from 1.8% to 5.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 United Breweries had CAPEX/Revenue of 8.7%. CAPEX/Revenue decreased on 2.0 pp from 10.7% in FY2012 to 8.7% in FY2015. Average CAPEX/Revenue for the last three years was 7.8%.To maintain this fast growth the company invested a large share of EBITDA (65.5%) to CAPEX.
Return on investment
The company operates at good ROIC (14.28%) and ROE (14.77%). ROIC increased on 6.2 pp from 8.1% to 14.3% in FY2015. ROE jumped on 10.0 pp from 4.7% to 14.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 1.3x. Net Debt / EBITDA dropped on 1.4x from 2.7x to 1.3x in FY2015. Debt dropped on 32.1% in FY2015 while cash dropped on 68.2% in FY2015.
Appendix 1: Peers in Breweries & Distilleries
Below you can find United Breweries benchmarking vs. other companies in Breweries & Distilleries 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 |
|---|
| Khoday India ($KHODAY) | -25.0% | 19.9% | -24.7% | 34.3% | |
| Pioneer Distilleries ($PIONDIST) | | 94.2% | -0.9% | 25.1% | 17.0% |
| Tilaknagar Industries ($TI) | -38.1% | 17.0% | 34.6% | 9.4% | |
| Ifb Agro Industries ($IFBAGRO) | -37.5% | -4.8% | 5.4% | 8.4% | |
| United Spirits ($UNITDSPR) | | 24.5% | 13.3% | 0.9% | -12.8% |
| |
|---|
| Median (7 companies) | -32.8% | 17.0% | 5.4% | 8.4% | 6.5% |
|---|
| United Breweries ($UBL) | | 16.3% | 9.5% | 8.5% | 10.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tilaknagar Industries ($TI) | 24.6% | 26.2% | 22.7% | 21.0% | |
| Khoday India ($KHODAY) | 9.1% | 28.0% | 7.1% | 19.2% | |
| Som Distilleries & Breweries ($SDBL) | 15.0% | 14.4% | 15.0% | 15.0% | |
| G.M.Breweries ($GMBREW) | 15.5% | 10.0% | 9.1% | 13.7% | 11.5% |
| Ifb Agro Industries ($IFBAGRO) | 7.8% | 11.5% | 10.8% | 9.2% | |
| |
|---|
| Median (7 companies) | 15.0% | 12.2% | 10.8% | 13.7% | 11.5% |
|---|
| United Breweries ($UBL) | 12.8% | 11.6% | 12.3% | 10.3% | 13.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pioneer Distilleries ($PIONDIST) | 33.1% | 29.8% | 35.0% | 30.0% | 12.3% |
| Tilaknagar Industries ($TI) | 23.7% | 20.6% | 10.0% | 14.8% | |
| Ifb Agro Industries ($IFBAGRO) | 2.7% | 4.6% | 1.8% | 9.8% | |
| United Spirits ($UNITDSPR) | 3.7% | 7.4% | 2.8% | 2.2% | 1.8% |
| Som Distilleries & Breweries ($SDBL) | 3.9% | 12.3% | 3.3% | 0.9% | |
| |
|---|
| Median (6 companies) | 7.2% | 7.4% | 4.5% | 6.0% | 1.8% |
|---|
| United Breweries ($UBL) | 14.4% | 10.7% | 9.8% | 5.0% | 8.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| G.M.Breweries ($GMBREW) | 29.6% | 18.4% | 17.0% | 21.9% | 18.0% |
| Som Distilleries & Breweries ($SDBL) | 25.8% | 23.3% | 22.2% | 19.2% | |
| Ifb Agro Industries ($IFBAGRO) | 25.9% | 33.3% | 26.7% | 18.8% | |
| Tilaknagar Industries ($TI) | 13.3% | 11.6% | 11.7% | 10.7% | |
| Silver Oak (India) ($SILVOAK) | | | 8.4% | 0.3% | |
| |
|---|
| Median (11 companies) | 10.4% | 15.0% | 8.7% | 10.7% | 18.0% |
|---|
| United Breweries ($UBL) | 12.4% | 11.5% | 11.6% | 8.1% | 14.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pioneer Distilleries ($PIONDIST) | | | | 10.4x | 2.1x |
| Tilaknagar Industries ($TI) | 3.6x | 4.3x | 3.8x | 4.8x | |
| Silver Oak (India) ($SILVOAK) | | 2.7x | 1.1x | 1.2x | |
| G.M.Breweries ($GMBREW) | 0.9x | 0.9x | 0.7x | 0.6x | 0.5x |
| Khoday India ($KHODAY) | 7.8x | 2.5x | 12.4x | 0.0x | |
| |
|---|
| Median (7 companies) | 3.6x | 2.5x | 1.1x | 0.6x | 2.1x |
|---|
| United Breweries ($UBL) | 1.9x | 2.0x | 2.5x | 2.7x | 1.3x |
