G.M.Breweries reports 213% Net Income growth in 2016 and 17.0% Revenue growth
05-04-2016 • About G.M.Breweries (
$GMBREW) • By InTwits
G.M.Breweries reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 23.8% in FY2016, 11.5% in FY2015, 13.7% in FY2014, 9.1% in FY2013, 10.0% in FY2012
- G.M.Breweries has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's in pair with industry average of 4.5%
- CAPEX is quite volatile: ₹0m in FY2016, ₹0m in FY2015, ₹0m in FY2014, ₹193m in FY2013, ₹79m in FY2012
- The company has highly profitable business model: ROIC is 46.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
G.M.Breweries's Revenue jumped on 17.0%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.5 pp from 9.1% to 6.6% in FY2016.
Net Income margin surged on 10.2 pp from 6.1% to 16.2% in FY2016.
Return on investment
The company operates at high and attractive ROIC (46.7%) and ROE (38.0%). ROIC jumped on 28.7 pp from 18.0% to 46.7% in FY2016. ROE jumped on 22.5 pp from 15.5% to 38.0% in FY2016.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash jumped on 265%.
Valuation and dividends
G.M.Breweries's trades at EV/EBITDA 13.0x and P/E 19.7x while industy averages are 17.8x and 21.9x. G.M.Breweries's EV/(EBITDA-CAPEX) is 13.0x with the industry average at 22.8x.
Financial and operational results
G.M.Breweries ($GMBREW) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,570 | 2,878 | 2,886 | 3,073 | 3,596 | 17.0% |
| EBITDA | 258 | 261 | 394 | 352 | 857 | 143.4% |
| Net Income | 138 | 139 | 215 | 186 | 583 | 212.9% |
Balance Sheet
|
|---|
| Cash | 6 | 37 | 50 | 92 | 337 | 265.0% |
| Short Term Debt | 236 | 174 | 54 | 71 | 0 | -100.0% |
| Long Term Debt | 0 | 54 | 232 | 192 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 79 | 193 | 0 | 0 | 0 | |
Ratios
|
|---|
| Revenue growth | 10.9% | 12.0% | 0.3% | 6.5% | 17.0% | |
| EBITDA growth | -28.0% | 1.2% | 51.0% | -10.6% | 143.4% | |
|
|---|
| EBITDA Margin | 10.0% | 9.1% | 13.7% | 11.5% | 23.8% | 12.4% |
| Net Income Margin | 5.4% | 4.8% | 7.5% | 6.1% | 16.2% | 10.2% |
| CAPEX, % of revenue | 3.1% | 6.7% | 0.0% | 0.0% | 0.0% | |
|
|---|
| ROIC | 18.4% | 17.0% | 21.9% | 18.0% | 46.7% | 28.7% |
| ROE | 17.3% | 15.4% | 20.5% | 15.5% | 38.0% | 22.5% |
| Net Debt/EBITDA | 0.9x | 0.7x | 0.6x | 0.5x | -0.4x | -0.9x |
Peers in Breweries & Distilleries
Below you can find G.M.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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ifb Agro Industries ($IFBAGRO) | -4.8% | 5.4% | 8.4% | 19.2% | - |
| Pioneer Distilleries ($PIONDIST) | 94.2% | -0.9% | 25.1% | 17.0% | - |
| United Breweries ($UBL) | 16.3% | 9.5% | 8.5% | 10.8% | - |
| Som Distilleries & Breweries ($SDBL) | 11.0% | 5.0% | -6.5% | 8.3% | - |
| Khoday India ($KHODAY) | 19.9% | -24.7% | 34.3% | -5.6% | - |
| |
|---|
| Median (7 companies) | 17.0% | 5.4% | 8.5% | 8.3% | - |
|---|
| G.M.Breweries ($GMBREW) | - | 12.0% | 0.3% | 6.5% | 17.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pioneer Distilleries ($PIONDIST) | -3.0% | -7.5% | 6.6% | 19.5% | - |
| Tilaknagar Industries ($TI) | 26.2% | 22.7% | 21.0% | 15.0% | - |
| Som Distilleries & Breweries ($SDBL) | 14.4% | 15.0% | 15.0% | 14.9% | - |
| United Breweries ($UBL) | 11.6% | 12.3% | 10.3% | 13.3% | - |
| United Spirits ($UNITDSPR) | 12.2% | 12.6% | -1.3% | 6.1% | - |
| |
|---|
| Median (10 companies) | 12.2% | 12.3% | 10.3% | 5.6% | - |
|---|
| G.M.Breweries ($GMBREW) | 10.0% | 9.1% | 13.7% | 11.5% | 23.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tilaknagar Industries ($TI) | 20.6% | 10.0% | 14.8% | 13.7% | - |
| Pioneer Distilleries ($PIONDIST) | 29.8% | 35.0% | 30.0% | 12.3% | - |
| United Breweries ($UBL) | 10.7% | 9.8% | 5.0% | 8.7% | - |
| Ifb Agro Industries ($IFBAGRO) | 4.6% | 1.8% | 9.8% | 4.5% | - |
| United Spirits ($UNITDSPR) | 7.4% | 2.8% | 2.2% | 1.8% | - |
| |
|---|
| Median (6 companies) | 10.7% | 4.5% | 7.4% | 6.6% | - |
|---|
| G.M.Breweries ($GMBREW) | 3.1% | 6.7% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pioneer Distilleries ($PIONDIST) | -12.3% | -17.4% | -3.3% | 70.5% | - |
| Som Distilleries & Breweries ($SDBL) | 23.3% | 22.2% | 19.2% | 16.5% | - |
| United Breweries ($UBL) | 11.5% | 11.6% | 8.1% | 14.3% | - |
| Ifb Agro Industries ($IFBAGRO) | 33.3% | 26.7% | 18.8% | 4.8% | - |
| Tilaknagar Industries ($TI) | 11.6% | 11.7% | 10.7% | 4.6% | - |
| |
|---|
| Median (11 companies) | 11.5% | 8.7% | 8.1% | 9.5% | - |
|---|
| G.M.Breweries ($GMBREW) | 18.4% | 17.0% | 21.9% | 18.0% | 46.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| United Spirits ($UNITDSPR) | 7.3x | 6.1x | - | 8.4x | - |
| Tilaknagar Industries ($TI) | 4.3x | 3.8x | 4.8x | 8.4x | - |
| Pioneer Distilleries ($PIONDIST) | - | - | 10.4x | 2.1x | - |
| United Breweries ($UBL) | 2.0x | 2.5x | 2.7x | 1.3x | - |
| Som Distilleries & Breweries ($SDBL) | 0.5x | -0.1x | -0.0x | 0.7x | - |
| |
|---|
| Median (7 companies) | 2.5x | 2.5x | 1.2x | 1.3x | - |
|---|
| G.M.Breweries ($GMBREW) | 0.9x | 0.7x | 0.6x | 0.5x | -0.4x |
