United Breweries (Holdings) Net Income jumped on 102% in 2015 and EBITDA Margin jumped on 359 pp from -662% to -303%

30-05-2015 • About United Breweries (Holdings) ($UBHOLDINGS) • By InTwits

United Breweries (Holdings) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

The company operates at negative EBITDA Margin: -303.1%
United Breweries (Holdings) motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -42.7% for the sames years0

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

United Breweries (Holdings) ($UBHOLDINGS) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	68,707	59,421	7,592	5,537	5,602	1.2%
EBITDA	1,204	-12,244	1,980	-36,677	-16,977
Net Income	-8,818	-15,115	-2,923	-13,937	320
Balance Sheet
Cash	3,335	472	1,431	2,268		-100.0%
Short Term Debt	16,904	12,534	28,039	13,926		-100.0%
Long Term Debt	78,188	22,254	19,025	19,341		-100.0%
Cash flow
Capex	402	254	210	222		-100.0%
Ratios
Revenue growth	891.0%	-13.5%	-87.2%	-27.1%	1.2%
EBITDA growth	-113.8%	-1,117.3%	-116.2%	-1,952.0%	-53.7%
EBITDA Margin	1.8%	-20.6%	26.1%	-662.4%	-303.1%	359.3%
Net Income Margin	-12.8%	-25.4%	-38.5%	-251.7%	5.7%	257.4%
CAPEX, % of revenue	0.6%	0.4%	2.8%	4.0%		-4.0%
ROIC	-2.4%	-20.6%	2.8%	-68.6%		68.6%
ROE			-13.1%	-123.9%		123.9%
Net Debt/EBITDA	76.2x		23.0x			0.0x

Revenue and profitability

The company's Revenue increased slightly on 1.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.4 pp from 22.0% to 31.3% in FY2015.

Net Income marign jumped on 257 pp from -252% to 5.7% in FY2015.

Appendix 1: Peers in Investment Companies

Below we provide United Breweries (Holdings) benchmarking against other companies in Investment Companies 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	FY2011	FY2012	FY2013	FY2014	FY2015
Oscar Investments ($OSCAR)		240.9%	-73.3%	54.7%	-4.0%
Median (1 company)		240.9%	-73.3%	54.7%	-4.0%
United Breweries (Holdings) ($UBHOLDINGS)		-13.5%	-87.2%	-27.1%	1.2%

Top companies by EBITDA margin, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Bf Investment ($BFINVEST)					95.0%
Summit Securities ($SUMMITSEC)					94.1%
Industrial & Prudential Investments Co ($INDPRUD)					90.4%
Oscar Investments ($OSCAR)	86.8%	96.3%	81.3%	86.6%	88.0%
Tamboli Capital ($TAMBOLI)					20.2%
Median (5 companies)	86.8%	96.3%	81.3%	86.6%	90.4%
United Breweries (Holdings) ($UBHOLDINGS)	1.8%	-20.6%	26.1%	-662.4%	-303.1%

Top companies by CAPEX/Revenue, %


Top	FY2011	FY2012	FY2013	FY2014	FY2015
Bf Investment ($BFINVEST)					5.3%
Summit Securities ($SUMMITSEC)					0.1%
Oscar Investments ($OSCAR)	0.2%	0.0%	1.2%	1.0%	0.1%
Median (3 companies)	0.2%	0.0%	1.2%	1.0%	0.1%

Top companies by ROIC, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Bf Investment ($BFINVEST)
Geefcee Finance ($GEEFC)
Industrial & Prudential Investments Co ($INDPRUD)
Oswal Agro Mills ($OSWALAGRO)
Summit Securities ($SUMMITSEC)
Median (7 companies)
United Breweries (Holdings) ($UBHOLDINGS)	-2.4%	-20.6%	2.8%	-68.6%

Top companies by Net Debt / EBITDA


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Oscar Investments ($OSCAR)	-0.9x	0.3x	5.0x	2.8x	7.7x
Tamboli Capital ($TAMBOLI)	1.8x	1.3x		0.0x	0.0x
Industrial & Prudential Investments Co ($INDPRUD)	-0.2x	-0.3x	-0.6x		0.0x
Bf Investment ($BFINVEST)	-0.0x	-0.0x	-0.0x	-0.0x	-0.0x
Summit Securities ($SUMMITSEC)	0.2x	-0.7x	-0.4x	-0.2x	-0.2x
Median (5 companies)	-0.0x	-0.0x	-0.4x	-0.0x	0.0x

United Breweries (Holdings) stock price chart

United Breweries (Holdings) financials

mln.	FY2010	FY2011	FY2012

Revenue	6,933	68,707	59,421
EBITDA	-8,729.960	1,204	-12,244.451
Net income	-17,645.700	-8,817.940	-15,114.600
CAPEX	0.000	402.1	254.0
Debt	89,349	95,092	34,788
Cash	2,302	3,335	471.9

About United Breweries (Holdings)

United Breweries (Holdings) Limited, an investment holding company, operates in the beverage alcohol sector in India. The company, through its holdings in various companies, is engaged in the brewery, fertilizers, property development, and engineering businesses. It operates through Alcoholic Beverages, Leather Products, Readymade Garments, Investments, Guarantee Services, Property Development, and Others segments. The company offers spirits, wines, and beer products; and various chemical fertilizers. It also operates an airline. In addition, the company provides industrial plant installation services, such as commissioning, on-site fabrication, installation, overhauling, and maintenance services primarily focusing on projects in power, fertilizers, oil and gas, fire fighting, effluent treatment, agrotech, and other sectors. Further, it sells and leases office and retail spaces; and exports alcoholic beverages, leather goods and footwear, garments and apparel, and processed foods to approximately 75 countries. The company was formerly known as Kingfisher Properties & Holdings Limited. United Breweries (Holdings) Limited was incorporated in 1915 and is headquartered in Bengaluru, India.

United Breweries (Holdings) Net Income jumped on 102% in 2015 and EBITDA Margin jumped on 359 pp from -662% to -303%

Revenue and profitability

Appendix 1: Peers in Investment Companies

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