United Breweries (Holdings) Net Income dropped on 110%

01-09-2016 • About United Breweries (Holdings) ($UBHOLDINGS) • By InTwits

United Breweries (Holdings) reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:

United Breweries (Holdings) is a company in decline: FY2016 revenue growth was -2.9%, 5 years revenue CAGR was -39.8%
United Breweries (Holdings) spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -76.5%

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 decreased on 2.9%.

Net Income margin decreased on 6.3 pp from 5.7% to -0.60% in FY2016.

Management team

United Breweries (Holdings)'s CFO Ajay Kumar Vijay has spent 4 years with the company.

Financial and operational results

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

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	59,421	7,592	5,537	5,602	5,438	-2.9%
EBITDA	-12,244	1,980	-36,677	-16,977
Net Income	-15,115	-2,923	-13,937	320	-33	-110.2%
Balance Sheet
Cash	472	1,431	2,268
Short Term Debt	12,534	28,039	13,926
Long Term Debt	22,254	19,025	19,341
Cash flow
Capex	254	210	222
Ratios
Revenue growth	-13.5%	-87.2%	-27.1%	1.2%	-2.9%
EBITDA growth	-1,117.3%	-116.2%	-1,952.0%	-53.7%

EBITDA Margin	-20.6%	26.1%	-662.4%	-303.1%
Net Income Margin	-25.4%	-38.5%	-251.7%	5.7%	-0.6%	-6.3%
CAPEX, % of revenue	0.4%	2.8%	4.0%

ROIC	-20.6%	2.8%	-68.6%
ROE		-13.1%	-123.9%
Net Debt/EBITDA		23.0x

Peers in Investment Companies

Below you can find United Breweries (Holdings) benchmarking vs. other companies in Investment Companies 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	FY2012	FY2013	FY2014	FY2015	FY2016
Oscar Investments ($OSCAR)	-	-73.3%	54.7%	-4.0%	27.6%
Median (1 company)	-	-73.3%	54.7%	-4.0%	27.6%
United Breweries (Holdings) ($UBHOLDINGS)	-	-87.2%	-27.1%	1.2%	-2.9%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Bf Investment ($BFINVEST)	-	-	-	95.0%	-
Summit Securities ($SUMMITSEC)	-	-	-	94.1%	-
Industrial & Prudential Investments Co ($INDPRUD)	-	-	-	90.4%	-
Kiran Vyapar ($KIRANVYPAR)	-	-	-	90.0%	-
Oscar Investments ($OSCAR)	96.3%	81.3%	86.6%	88.0%	54.0%
Median (6 companies)	96.3%	81.3%	86.6%	90.2%	54.0%
United Breweries (Holdings) ($UBHOLDINGS)	-20.6%	26.1%	-662.4%	-303.1%	-

Top companies by CAPEX/Revenue, %


Top	FY2012	FY2013	FY2014	FY2015	FY2016
Kiran Vyapar ($KIRANVYPAR)	-	-	-	30.4%	-
Bf Investment ($BFINVEST)	-	-	-	5.3%	-
Summit Securities ($SUMMITSEC)	-	-	-	0.1%	-
Oscar Investments ($OSCAR)	0.0%	1.2%	1.0%	0.1%	0.0%
Median (4 companies)	0.0%	1.2%	1.0%	2.7%	0.0%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Summit Securities ($SUMMITSEC)	-	-	-	-	10.2%
Kiran Vyapar ($KIRANVYPAR)	-	-	-	-	5.2%
Geefcee Finance ($GEEFC)	-	-	-	-	-
Industrial & Prudential Investments Co ($INDPRUD)	-	-	-	-	-
Bf Investment ($BFINVEST)	-	-	-	-	-
Median (8 companies)	-	-	-	-	7.7%
United Breweries (Holdings) ($UBHOLDINGS)	-20.6%	2.8%	-68.6%	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Oscar Investments ($OSCAR)	0.3x	5.0x	2.8x	7.7x	7.4x
Kiran Vyapar ($KIRANVYPAR)	-	-	-0.3x	0.2x	0.7x
Tamboli Capital ($TAMBOLI)	1.3x	-	0.0x	0.0x	0.0x
Industrial & Prudential Investments Co ($INDPRUD)	-0.3x	-0.6x	-	0.0x	0.0x
Oswal Agro Mills ($OSWALAGRO)	-	-2.2x	-	-	-0.2x
Median (7 companies)	-0.0x	-0.4x	-0.0x	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.