Warren Tea Net Income dropped on 38.3% in 2015 and Revenue decreased on 7.5%
29-05-2015 • About Warren Tea (
$WARRENTEA) • By InTwits
Warren Tea reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts: Warren Tea is a company in decline: FY2015 revenue growth was -7.5%, 5 years revenue CAGR was -2.9%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Warren Tea ($WARRENTEA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,108 | 2,127 | 1,191 | 1,401 | 1,297 | -7.5% |
| EBITDA | 401 | 167 | 211 | 306 | | -100.0% |
| Net Income | 206 | 60 | 137 | 202 | 125 | -38.3% |
Balance Sheet
|
|---|
| Cash | 78 | 185 | 88 | 75 | | -100.0% |
| Short Term Debt | 108 | 1 | 0 | 0 | | |
| Long Term Debt | 13 | 0 | 0 | 0 | | |
Cash flow
|
|---|
| Capex | 163 | 119 | 23 | 31 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 40.0% | 0.9% | -44.0% | 17.7% | -7.5% | |
| EBITDA growth | -4.9% | -58.2% | 26.2% | 44.8% | | |
| EBITDA Margin | 19.0% | 7.9% | 17.7% | 21.8% | 0.0% | -21.8% |
| Net Income Margin | 9.8% | 2.8% | 11.5% | 14.4% | 9.6% | -4.8% |
| CAPEX, % of revenue | 7.7% | 5.6% | 1.9% | 2.2% | | -2.2% |
| ROIC | 19.3% | 4.3% | 12.7% | 25.7% | | -25.7% |
| ROE | 13.8% | 3.7% | 10.8% | 20.5% | | -20.5% |
| Net Debt/EBITDA | 0.1x | -1.1x | -0.4x | -0.2x | | 0.2x |
Revenue and profitability
The company's Revenue decreased on 7.5% in FY2015.
Net Income marign decreased on 4.8 pp from 14.4% to 9.6% in FY2015.
Appendix 1: Peers in Tea & Coffee
Below we provide Warren Tea benchmarking against other companies in Tea & Coffee 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rossell India ($ROSSELLIND) | | 5.4% | 27.9% | 33.6% | -0.3% |
| Andrew Yule & Company ($ANDREWYU) | -40.5% | 17.1% | 4.7% | 19.3% | |
| Bombay Burmah Trading Corp ($BBTC) | | 15.7% | 10.0% | 11.5% | 12.7% |
| Ccl Products (India) ($CCL) | | 38.0% | 29.6% | 10.2% | 22.8% |
| Diana Tea Co ($DIANATEA) | -17.9% | -12.6% | -11.1% | 9.9% | |
| |
|---|
| Median (11 companies) | -40.5% | 16.4% | 10.0% | 7.8% | 4.0% |
|---|
| Warren Tea ($WARRENTEA) | | 0.9% | -44.0% | 17.7% | -7.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rossell India ($ROSSELLIND) | 32.2% | 31.0% | 27.5% | 26.5% | 14.7% |
| Ccl Products (India) ($CCL) | 18.0% | 20.3% | 20.1% | 21.5% | 20.6% |
| Mcleod Russel India ($MCLEODRUSS) | 28.5% | 27.5% | 23.2% | 20.4% | 8.1% |
| Tata Coffee ($TATACOFFEE) | 19.8% | 12.8% | 19.2% | 19.9% | 20.2% |
| B & A ($BNALTD) | | 18.4% | 17.1% | 17.1% | 14.8% |
| |
|---|
| Median (11 companies) | 14.1% | 9.4% | 13.7% | 9.7% | 12.6% |
|---|
| Warren Tea ($WARRENTEA) | 19.0% | 7.9% | 17.7% | 21.8% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rossell India ($ROSSELLIND) | 3.3% | 11.0% | 6.7% | 14.8% | 11.1% |
| Mcleod Russel India ($MCLEODRUSS) | 4.9% | 10.0% | 6.0% | 9.4% | 9.8% |
| Ccl Products (India) ($CCL) | 12.0% | 11.1% | 5.8% | 8.3% | 2.4% |
| Jay Shree Tea & Industries ($JAYSHREETEA) | 10.7% | 4.5% | 3.7% | 6.4% | 3.5% |
| Tata Coffee ($TATACOFFEE) | 1.9% | 3.2% | 4.3% | 4.0% | 3.6% |
| |
|---|
| Median (9 companies) | 4.1% | 4.5% | 3.7% | 4.0% | 3.5% |
|---|
| Warren Tea ($WARRENTEA) | 7.7% | 5.6% | 1.9% | 2.2% | |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bombay Burmah Trading Corp ($BBTC) | 9.4% | 10.7% | 13.9% | 20.6% | 23.7% |
| Ccl Products (India) ($CCL) | 9.7% | 16.1% | 18.0% | 19.7% | 23.0% |
| Goodricke Group ($GOODRICKE) | 27.7% | 13.0% | 20.9% | 16.8% | |
| Tata Coffee ($TATACOFFEE) | 15.7% | 10.9% | 16.2% | 14.0% | 14.0% |
| Mcleod Russel India ($MCLEODRUSS) | 17.5% | 18.6% | 15.7% | 12.9% | 2.0% |
| |
|---|
| Median (14 companies) | 9.7% | 10.8% | 13.9% | 12.9% | 8.0% |
|---|
| Warren Tea ($WARRENTEA) | 19.3% | 4.3% | 12.7% | 25.7% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jay Shree Tea & Industries ($JAYSHREETEA) | 5.9x | 8.6x | 4.5x | 8.2x | 19.5x |
| Tata Coffee ($TATACOFFEE) | 2.7x | 3.6x | 2.6x | 2.7x | 2.5x |
| Andrew Yule & Company ($ANDREWYU) | 4.3x | 2.1x | 5.4x | 1.9x | |
| Ccl Products (India) ($CCL) | 3.7x | 2.6x | 2.3x | 1.7x | 1.1x |
| Rossell India ($ROSSELLIND) | 0.4x | 0.0x | 1.9x | 1.5x | 2.6x |
| |
|---|
| Median (13 companies) | 2.5x | 2.1x | 1.9x | 1.0x | 1.8x |
|---|
| Warren Tea ($WARRENTEA) | 0.1x | -1.1x | -0.4x | -0.2x | |
