Origin Enterprises reports 21.7% Net Income growth and 0.88 pp EBITDA Margin growth from 5.9% to 6.8%
23 Sep 2015 • About Origin Enterprises (
$OGN) • By InTwits
Origin Enterprises reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 6.8% in FY2015 vs. 5.9% in FY2014 vs. 5.4% in FY2011
- Origin Enterprises has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has highly profitable business model: ROIC is at 20.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Origin Enterprises ($OGN) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,257 | 1,340 | 1,418 | 1,415 | 1,458 | 3.0% |
| Gross Profit | 165 | 191 | 193 | 219 | 226 | 3.4% |
| SG&A | 99 | 122 | 124 | 139 | 147 | 5.7% |
| EBITDA | 69 | 65 | 79 | 84 | 99 | 18.4% |
| Net Income | 46 | 43 | 73 | 63 | 77 | 21.7% |
Balance Sheet
|
|---|
| Cash | 55 | 95 | 125 | 140 | 199 | 42.8% |
| Short Term Debt | 6 | 7 | 5 | 35 | 40 | 13.5% |
| Long Term Debt | 142 | 156 | 151 | 116 | 100 | -14.1% |
Cash flow
|
|---|
| Capex | 7 | 6 | 8 | 12 | 9 | -27.8% |
Ratios
|
|---|
| Revenue growth | 16.8% | 6.6% | 5.8% | -0.2% | 3.0% | |
| EBITDA growth | 16.9% | -5.0% | 20.9% | 6.6% | 18.4% | |
| Gross Margin | 13.1% | 14.3% | 13.6% | 15.5% | 15.5% | 0.0% |
| EBITDA Margin | 5.4% | 4.9% | 5.5% | 5.9% | 6.8% | 0.9% |
| Net Income Margin | 3.6% | 3.2% | 5.1% | 4.5% | 5.3% | 0.8% |
| SG&A, % of revenue | 7.9% | 9.1% | 8.7% | 9.9% | 10.1% | 0.3% |
| CAPEX, % of revenue | 0.5% | 0.4% | 0.6% | 0.9% | 0.6% | -0.3% |
| ROIC | 15.4% | 13.2% | 15.3% | 16.9% | 20.1% | 3.3% |
| ROE | 22.9% | 18.6% | 28.2% | 25.5% | 30.5% | 5.0% |
| Net Debt/EBITDA | 1.3x | 1.0x | 0.4x | 0.1x | -0.6x | -0.7x |
Revenue and profitability
The company's Revenue increased on 3.0% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.88 pp from 5.9% to 6.8% in FY2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased slightly on 0.81 pp from 4.5% to 5.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Origin Enterprises's CAPEX/Revenue was 0.60% in FY2015. Origin Enterprises showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 0.67%.
Return on investment
The company operates at high and attractive ROIC (20.14%) and ROE (30.52%). ROIC increased on 3.3 pp from 16.9% to 20.1% in FY2015. ROE increased on 5.0 pp from 25.5% to 30.5% in FY2015.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.7x from 0.1x to -0.6x in FY2015. Debt decreased on 7.7% in FY2015 while cash jumped on 42.8% in FY2015.
Appendix 1: Peers in Food Producers
Below we provide Origin Enterprises benchmarking against other companies in Food Producers 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ros Agro ($AGRO) | 29.7% | -13.2% | 8.2% | 78.6% | |
| Cherkizovo Group OJSC ($CHE) | 20.0% | 12.6% | 8.1% | 31.5% | |
| Kakuzi ($KAKU) | -26.2% | 0.3% | -11.5% | 22.1% | |
| R.E.A.Hldgs ($RE.B) | 29.6% | -15.7% | -11.3% | 13.9% | |
| Tongaat Hulett Ltd ($THL) | | 24.8% | 19.0% | 9.3% | 2.8% |
| |
|---|
| Median (18 companies) | 25.8% | 13.2% | 6.5% | 0.3% | 2.8% |
|---|
| Origin Enterprises ($OGN) | | 6.6% | 5.8% | -0.2% | 3.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Walcom Group Ltd ($WALG) | 63.5% | 62.6% | 63.2% | 62.2% | |
| Narborough Plantations ($NBP) | | 64.9% | 55.5% | 59.7% | 54.6% |
| R.E.A.Hldgs ($RE.B) | 56.7% | 44.4% | 37.3% | 36.8% | |
| Zambeef Products ($ZAM) | 32.3% | 33.6% | 34.5% | 33.7% | |
| Ros Agro ($AGRO) | 19.5% | 28.8% | 22.1% | 33.6% | |
| |
|---|
| Median (15 companies) | 27.7% | 31.2% | 22.1% | 32.5% | 38.5% |
|---|
| Origin Enterprises ($OGN) | 13.1% | 14.3% | 13.6% | 15.5% | 15.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Narborough Plantations ($NBP) | | 58.1% | 42.5% | 39.6% | 37.4% |
| Mhp Sa ($MHPC) | 32.6% | 33.2% | 26.1% | 37.0% | |
| R.E.A.Hldgs ($RE.B) | 52.8% | 35.3% | 34.0% | 33.2% | |
| Avangardco Investments Public Ltd ($AVGR) | 44.4% | 44.5% | 45.6% | 30.9% | |
| Ros Agro ($AGRO) | 10.9% | 20.6% | 15.5% | 28.1% | |
| |
|---|
| Median (18 companies) | 11.6% | 17.5% | 12.2% | 12.1% | 16.5% |
|---|
| Origin Enterprises ($OGN) | 5.4% | 4.9% | 5.5% | 5.9% | 6.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Agriterra Ltd ($AGTA) | 18.9% | 54.8% | 49.5% | 43.0% | |
| Kakuzi ($KAKU) | 15.5% | 20.1% | 20.8% | 22.0% | |
| Avangardco Investments Public Ltd ($AVGR) | 26.3% | 51.1% | 28.0% | 18.4% | |
| Asian Citrus Hldgs ($ACHL) | 14.9% | 19.3% | 28.6% | 17.7% | |
| R.E.A.Hldgs ($RE.B) | 13.2% | 40.3% | 10.9% | 11.8% | |
| |
|---|
| Median (18 companies) | 14.1% | 8.3% | 9.1% | 6.0% | 5.2% |
|---|
| Origin Enterprises ($OGN) | 0.5% | 0.4% | 0.6% | 0.9% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ros Agro ($AGRO) | 5.4% | 7.2% | 4.0% | 23.8% | |
| Cherkizovo Group OJSC ($CHE) | 11.7% | 13.5% | 4.8% | 22.4% | |
| Fyffes ($FFY) | 8.8% | 16.4% | 17.2% | 18.5% | |
| Mhp Sa ($MHPC) | 19.4% | 18.4% | 11.2% | 17.6% | |
| Kerry Group ($KYGA) | 14.0% | 10.6% | 5.2% | 16.6% | |
| |
|---|
| Median (18 companies) | 11.7% | 11.8% | 5.2% | 9.7% | 2.7% |
|---|
| Origin Enterprises ($OGN) | 15.4% | 13.2% | 15.3% | 16.9% | 20.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zambeef Products ($ZAM) | 3.0x | 6.3x | 4.7x | 4.8x | |
| R.E.A.Hldgs ($RE.B) | 1.2x | 3.1x | 4.4x | 3.9x | |
| Ukrproduct Group ($UKR) | 4.3x | 2.7x | 4.4x | 3.4x | |
| Glanbia ($GLB) | 3.1x | 1.9x | 1.7x | 2.3x | |
| Mhp Sa ($MHPC) | 2.0x | 2.2x | 2.9x | 2.2x | |
| |
|---|
| Median (16 companies) | 2.0x | 1.9x | 1.7x | 1.7x | 1.8x |
|---|
| Origin Enterprises ($OGN) | 1.3x | 1.0x | 0.4x | 0.1x | -0.6x |
