C&C Group Net Income dropped on 197% in 2015 while Revenue jumped on 10.3%
13 May 2015 • About C&C Group (
$CCR) • By InTwits
C&C Group reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- C&C Group doesn't have a profitable business model yet: FY2015 ROIC is -5.1%
- EBITDA Margin is declining: -4.9% in FY2015 vs. 21.0% in FY2014 vs. 21.6% in FY2011
- EBITDA Margin is quite volatile: -4.9% in FY2015, 21.0% in FY2014, 27.6% in FY2013, 28.3% in FY2012, 21.6% in FY2011
- C&C Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's a lot of higher than industry average of 3.2%.
- CAPEX is quite volatile: 12.8 in 2015, 22.8 in 2014, 9.3 in 2013, 13.8 in 2012, 479 in 2011
- The company has unprofitable business model: ROIC is at -5.1%
- It operates with high leverage: Net Debt/EBITDA is 1.3x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
C&C Group ($CCR) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 509.9 | 480.8 | 476.9 | 620.2 | 683.9 | 10.3% |
| SG&A | 124.6 | 101.4 | 93.7 | 100.9 | 104.9 | 4.0% |
| EBITDA | 110.2 | 136.3 | 131.7 | 130.0 | -33.5 | -125.8% |
| Net Income | 300.4 | 95.7 | 89.4 | 83.3 | -81.0 | -197.2% |
Balance Sheet
|
|---|
| Cash | 128.7 | 128.3 | 121.0 | 162.8 | 181.9 | 11.7% |
| Short Term Debt | 35.2 | 60.0 | 0.0 | 0.1 | 0.0 | -100.0% |
| Long Term Debt | 99.8 | 0.0 | 244.4 | 307.9 | 339.7 | 10.3% |
Cash flow
|
|---|
| Capex | 21.1 | 18.9 | 24.1 | 38.5 | 21.9 | -43.1% |
Ratios
|
|---|
| Revenue growth | 40.6% | -5.7% | -0.8% | 30.0% | 10.3% | |
| EBITDA growth | 25.1% | 23.7% | -3.4% | -1.3% | -125.8% | |
| EBITDA Margin | 21.6% | 28.3% | 27.6% | 21.0% | -4.9% | -25.9% |
| Net Income Margin | 58.9% | 19.9% | 18.7% | 13.4% | -11.8% | -25.3% |
| SG&A, % of revenue | 24.4% | 21.1% | 19.6% | 16.3% | 15.3% | -0.9% |
| CAPEX, % of revenue | 4.1% | 3.9% | 5.1% | 6.2% | 3.2% | -3.0% |
| ROIC | 11.3% | 15.0% | 12.2% | 9.7% | -5.1% | -14.8% |
| ROE | 61.7% | 14.1% | 12.0% | 10.2% | -10.0% | -20.2% |
| Net Debt/EBITDA | 0.1x | -0.5x | 0.9x | 1.1x | | -1.1x |
Revenue and profitability
C&C Group's Revenue surged on 10.3% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 25.9 pp from 21.0% to -4.9% in FY2015.
SG&A as a % of Revenue decreased slightly on 0.93 pp from 16.3% to 15.3% in FY2015.
Net Income marign dropped on 25.3 pp from 13.4% to -11.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 3.2%. CAPEX/Revenue decreased slightly on 0.73 pp from 3.9% in FY2012 to 3.2% in FY2015. It's average level of CAPEX/Revenue for the last three years was 4.8%.
Return on investment
The company operates at negative ROIC (-5.13%) and ROE (-9.97%). ROIC dropped on 14.8 pp from 9.7% to -5.1% in FY2015. ROE dropped on 20.2 pp from 10.2% to -10.0% in FY2015.
Leverage (Debt)
Debt level is 1.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 1.1x from 1.1x to in FY2015. Debt surged on 10.3% in FY2015 while cash surged on 11.7% in FY2015.
Appendix 1: Peers in Beverages
Below we provide C&C Group benchmarking against other companies in Beverages 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.
