Andrew Yule & Company EBITDA dropped on 41.9% in 2015 and Revenue decreased on 3.0%
30-05-2015 • About Andrew Yule & Company (
$ANDREWYU) • By InTwits
Andrew Yule & Company reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Andrew Yule & Company is a company in decline: FY2015 revenue growth was -3.0%, 5 years revenue CAGR was -3.4%
- Andrew Yule & Company has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's a lot of higher than industry average of 5.3%.
- CAPEX is quite volatile: 0 in FY2015, 0 in FY2014, 9,546 in FY2013, 14,414 in FY2012, 7,503 in FY2011
- The company has potentially unprofitable business model: ROIC is at 2.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Andrew Yule & Company ($ANDREWYU) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,615 | 3,061 | 3,203 | 3,821 | 3,706 | -3.0% |
| EBITDA | 238 | 197 | 199 | 314 | 182 | -41.9% |
| Net Income | 570 | 257 | 244 | 352 | 461 | 31.2% |
Balance Sheet
|
|---|
| Cash | 392 | 1,026 | 319 | 343 | 671 | 95.5% |
| Short Term Debt | 511 | 742 | 779 | 381 | 667 | 75.0% |
| Long Term Debt | 913 | 695 | 617 | 556 | 309 | -44.4% |
Cash flow
|
|---|
| Capex | 58 | 86 | 59 | 90 | 109 | 20.7% |
Ratios
|
|---|
| Revenue growth | -40.5% | 17.1% | 4.7% | 19.3% | -3.0% | |
| EBITDA growth | 120.6% | -17.0% | 0.7% | 58.0% | -41.9% | |
| EBITDA Margin | 9.1% | 6.4% | 6.2% | 8.2% | 4.9% | -3.3% |
| Net Income Margin | 21.8% | 8.4% | 7.6% | 9.2% | 12.4% | 3.2% |
| CAPEX, % of revenue | 2.2% | 2.8% | 1.8% | 2.4% | 2.9% | 0.6% |
| ROIC | 5.5% | 4.0% | 3.7% | 6.5% | 2.6% | -3.9% |
| ROE | 38.0% | 13.5% | 11.3% | 13.2% | 14.2% | 1.0% |
| Net Debt/EBITDA | 4.3x | 2.1x | 5.4x | 1.9x | 1.7x | -0.2x |
Revenue and profitability
The company's Revenue decreased on 3.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 39.8 pp from -76.1% to -36.3% in FY2015.
Net Income marign increased on 3.2 pp from 9.2% to 12.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.9% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 2.4%.The company invested a big chunk of EBITDA (59.6%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at good ROE (14.22%) while ROIC is low (2.59%). ROIC decreased on 3.9 pp from 6.5% to 2.6% in FY2015. ROE increased slightly on 1.0 pp from 13.2% to 14.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.7x and Debt / EBITDA is 5.4x. Net Debt / EBITDA dropped on 0.2x from 1.9x to 1.7x in FY2015. Debt increased on 4.2% in FY2015 while cash surged on 95.5% in FY2015.
Appendix 1: Peers in Tea & Coffee
Below we provide Andrew Yule & Company 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 |
|---|
| Ccl Products (India) ($CCL) | | 38.0% | 29.6% | 10.2% | 22.8% |
| Bombay Burmah Trading Corp ($BBTC) | | 15.7% | 10.0% | 11.5% | 12.7% |
| Tata Coffee ($TATACOFFEE) | | 19.1% | 7.3% | -3.0% | 5.1% |
| B & A ($BNALTD) | | | 16.7% | 7.8% | 4.8% |
| Tata Global Beverages ($TATAGLOBAL) | | 11.0% | 10.7% | 5.3% | 3.3% |
| |
|---|
| Median (9 companies) | -30.3% | 14.8% | 10.0% | 7.8% | 3.3% |
|---|
| Andrew Yule & Company ($ANDREWYU) | | 17.1% | 4.7% | 19.3% | -3.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rossell India ($ROSSELLIND) | 32.2% | 31.0% | 27.5% | 26.5% | 14.7% |
| Warren Tea ($WARRENTEA) | 19.0% | 7.9% | 17.7% | 21.8% | |
| 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 ($TATACOFFEE) | 19.8% | 12.8% | 19.2% | 19.9% | 20.2% |
| |
|---|
| Median (11 companies) | 16.8% | 9.4% | 17.1% | 17.1% | 12.6% |
|---|
| Andrew Yule & Company ($ANDREWYU) | 9.1% | 6.4% | 6.2% | 8.2% | 4.9% |
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% |
| Tata Coffee ($TATACOFFEE) | 1.9% | 3.2% | 4.3% | 4.0% | 3.6% |
| Jay Shree Tea & Industries ($JAYSHREETEA) | 10.7% | 4.5% | 3.7% | 6.4% | 3.5% |
| Ccl Products (India) ($CCL) | 12.0% | 11.1% | 5.8% | 8.3% | 2.4% |
| |
|---|
| Median (7 companies) | 5.1% | 4.7% | 3.7% | 4.0% | 3.5% |
|---|
| Andrew Yule & Company ($ANDREWYU) | 2.2% | 2.8% | 1.8% | 2.4% | 2.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Warren Tea ($WARRENTEA) | 19.3% | 4.3% | 12.7% | 25.7% | |
| Bombay Burmah Trading Corp ($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 ($TATACOFFEE) | 15.7% | 10.9% | 16.2% | 14.0% | 14.0% |
| |
|---|
| Median (14 companies) | 9.7% | 10.8% | 13.9% | 14.0% | 8.0% |
|---|
| Andrew Yule & Company ($ANDREWYU) | 5.5% | 4.0% | 3.7% | 6.5% | 2.6% |
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 |
| 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 |
| Bombay Burmah Trading Corp ($BBTC) | 4.2x | 3.0x | 1.8x | 1.0x | 0.7x |
| |
|---|
| Median (13 companies) | 1.6x | 1.7x | 1.8x | 0.7x | 1.8x |
|---|
| Andrew Yule & Company ($ANDREWYU) | 4.3x | 2.1x | 5.4x | 1.9x | 1.7x |
