Som Distilleries & Breweries Debt surged on 52.3% and Net Debt / EBITDA jumped on 1.6x from 0.7x to 2.2x
18-05-2016 • About Som Distilleries & Breweries (
$SDBL) • By InTwits
Som Distilleries & Breweries reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 14.8% in FY2016 vs. 14.9% in FY2015 vs. 14.4% in FY2012
- Som Distilleries & Breweries has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's in pair with industry average of 4.8%
- CAPEX is quite volatile: ₹25m in FY2016, ₹31m in FY2015, ₹16m in FY2014, ₹66m in FY2013, ₹239m in FY2012
- The company has highly profitable business model: ROIC is 13.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.2x while industry average is 2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 6.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.6 pp from 55.5% to 49.9% in FY2016. During the last 5 years EBITDA Margin topped in FY2014 at 15.0% and was declining since that time.
Net Income margin decreased slightly on 1.8 pp from 7.8% to 6.1% in FY2016. During FY2012-FY2016 Net Income margin topped in FY2014 at 10.7% and was declining since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.1% in FY2016. The company showed decline in CAPEX/Revenue of 2.1 pp from 3.3% in FY2013 to 1.1% in FY2016. For the last three years the average CAPEX/Revenue was 1.2%.
Return on investment
The company operates at good ROIC (13.3%) while ROE is low (10.9%). ROIC decreased on 3.2 pp from 16.5% to 13.3% in FY2016. ROE decreased on 3.4 pp from 14.3% to 10.9% in FY2016. ROIC stuck to a declining trend at -2.6 pp per annum in the last 5 years. ROE stuck to a declining trend at -2.7 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.2x and Debt / EBITDA is 2.8x. Net Debt / EBITDA surged on 1.6x from 0.7x to 2.2x in FY2016. Debt jumped on 52.3% while cash dropped on 51.7%. During FY2012-FY2016 Net Debt/EBITDA bottomed in FY2013 at -0.1x and was growing since that time.
Som Distilleries & Breweries has short term refinancing risk: cash is only 37.8% of short term debt.
Valuation and dividends
Som Distilleries & Breweries's trades at EV/EBITDA 15.9x and P/E 33.3x while industy averages are 17.8x and 21.9x. Som Distilleries & Breweries's EV/(EBITDA-CAPEX) is 17.2x with the industry average at 22.8x.
Financial and operational results
Som Distilleries & Breweries ($SDBL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,938 | 2,035 | 1,903 | 2,062 | 2,199 | 6.7% |
| EBITDA | 278 | 306 | 286 | 307 | 326 | 6.2% |
| Net Income | 152 | 178 | 203 | 162 | 134 | -17.3% |
Balance Sheet
|
|---|
| Cash | 81 | 134 | 61 | 398 | 193 | -51.7% |
| Short Term Debt | 98 | 3 | 3 | 319 | 509 | 59.7% |
| Long Term Debt | 109 | 105 | 54 | 286 | 412 | 44.0% |
Cash flow
|
|---|
| Capex | 239 | 66 | 16 | 31 | 25 | -18.8% |
Ratios
|
|---|
| Revenue growth | 11.0% | 5.0% | -6.5% | 8.3% | 6.7% | |
| EBITDA growth | 6.1% | 9.9% | -6.5% | 7.3% | 6.2% | |
|
|---|
| EBITDA Margin | 14.4% | 15.0% | 15.0% | 14.9% | 14.8% | -0.1% |
| Net Income Margin | 7.9% | 8.7% | 10.7% | 7.8% | 6.1% | -1.8% |
| CAPEX, % of revenue | 12.3% | 3.3% | 0.9% | 1.5% | 1.1% | -0.4% |
|
|---|
| ROIC | 23.3% | 22.2% | 19.2% | 16.5% | 13.3% | -3.2% |
| ROE | 20.9% | 20.8% | 20.4% | 14.3% | 10.9% | -3.4% |
| Net Debt/EBITDA | 0.5x | -0.1x | -0.0x | 0.7x | 2.2x | 1.6x |
Peers in Breweries & Distilleries
Below you can find Som Distilleries & 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 ($IFBAGRO) | - | 5.4% | 8.4% | 19.2% | 4.8% |
| Pioneer Distilleries ($PIONDIST) | - | -0.9% | 25.1% | 17.0% | -5.3% |
| United Breweries ($UBL) | - | 9.5% | 8.5% | 10.8% | 8.3% |
| G.M.Breweries ($GMBREW) | - | 12.0% | 0.3% | 6.5% | 17.0% |
| Khoday India ($KHODAY) | 19.9% | -24.7% | 34.3% | -5.6% | - |
| |
|---|
| Median (7 companies) | 19.9% | 9.5% | 8.5% | 6.5% | 6.5% |
|---|
| Som Distilleries & Breweries ($SDBL) | - | 5.0% | -6.5% | 8.3% | 6.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pioneer Distilleries ($PIONDIST) | -3.0% | -7.5% | 6.6% | 19.5% | 56.5% |
| Tilaknagar Industries ($TI) | 26.2% | 22.7% | 21.0% | 15.0% | - |
| United Breweries ($UBL) | 11.6% | 12.3% | 10.3% | 13.3% | 14.4% |
| G.M.Breweries ($GMBREW) | 10.0% | 9.1% | 13.7% | 11.5% | 23.8% |
| United Spirits ($UNITDSPR) | 12.2% | 12.6% | -1.3% | 6.1% | - |
| |
|---|
| Median (10 companies) | 11.6% | 10.8% | 10.3% | 5.6% | 19.1% |
|---|
| Som Distilleries & Breweries ($SDBL) | 14.4% | 15.0% | 15.0% | 14.9% | 14.8% |
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 ($UBL) | 10.7% | 9.8% | 5.0% | 8.7% | 4.8% |
| Ifb Agro Industries ($IFBAGRO) | 4.6% | 1.8% | 9.8% | 4.5% | 7.4% |
| United Spirits ($UNITDSPR) | 7.4% | 2.8% | 2.2% | 1.8% | - |
| |
|---|
| Median (6 companies) | 7.4% | 6.7% | 7.4% | 6.6% | 4.8% |
|---|
| Som Distilleries & Breweries ($SDBL) | 12.3% | 3.3% | 0.9% | 1.5% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pioneer Distilleries ($PIONDIST) | -12.3% | -17.4% | -3.3% | 70.5% | - |
| G.M.Breweries ($GMBREW) | 18.4% | 17.0% | 21.9% | 18.0% | 46.7% |
| United Breweries ($UBL) | 11.5% | 11.6% | 8.1% | 14.3% | 17.1% |
| Ifb Agro Industries ($IFBAGRO) | 33.3% | 26.7% | 18.8% | 4.8% | 8.0% |
| Tilaknagar Industries ($TI) | 11.6% | 11.7% | 10.7% | 4.6% | - |
| |
|---|
| Median (11 companies) | 11.5% | 8.7% | 8.1% | 9.5% | 17.1% |
|---|
| Som Distilleries & Breweries ($SDBL) | 23.3% | 22.2% | 19.2% | 16.5% | 13.3% |
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 ($PIONDIST) | - | - | 10.4x | 2.1x | 0.3x |
| United Breweries ($UBL) | 2.0x | 2.5x | 2.7x | 1.3x | 0.9x |
| G.M.Breweries ($GMBREW) | 0.9x | 0.7x | 0.6x | 0.5x | -0.4x |
| |
|---|
| Median (7 companies) | 2.5x | 2.5x | 1.2x | 1.3x | 0.5x |
|---|
| Som Distilleries & Breweries ($SDBL) | 0.5x | -0.1x | -0.0x | 0.7x | 2.2x |
