Asian Citrus Hldgs CAPEX dropped on 38.8% in 2015 and Revenue dropped on 24.3%
30 Sep 2015 • About Asian Citrus Hldgs (
$ACHL) • By InTwits
Asian Citrus Hldgs reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Asian Citrus Hldgs doesn't have a profitable business model yet: FY2015 ROIC is -21.8%
- The company operates at negative EBITDA Margin: -108.2%
- Asian Citrus Hldgs spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -6.4%0
- Asian Citrus Hldgs has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.0%. At the same time it's a lot of higher than industry average of 8.9%.
- CAPEX is quite volatile: 138 in FY2015, 225 in FY2014, 424 in FY2013, 343 in FY2012, 211 in FY2011
- The company has unprofitable business model: ROIC is at -21.8%
- It operates with high leverage: Net Debt/EBITDA is 2.1x while industry average is 0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asian Citrus Hldgs ($ACHL) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,413 | 1,776 | 1,486 | 1,271 | 963 | -24.3% |
| Gross Profit | 739 | 792 | 498 | 134 | -419 | -412.7% |
| SG&A | 206 | 218 | 166 | 189 | 172 | -8.8% |
| EBITDA | 1,155 | 887 | 232 | -1,679 | -1,041 | -38.0% |
| Net Income | 1,039 | 750 | 114 | -1,839 | -1,222 | -33.5% |
Balance Sheet
|
|---|
| Cash | 2,232 | 2,388 | 2,141 | 1,805 | 938 | -48.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | 8.8% |
| Long Term Debt | 1 | 1 | 1 | 1 | 1 | -17.1% |
Cash flow
|
|---|
| Capex | 211 | 343 | 424 | 225 | 138 | -38.8% |
Ratios
|
|---|
| Revenue growth | 73.9% | 25.7% | -16.3% | -14.5% | -24.3% | |
| EBITDA growth | 76.0% | -23.2% | -73.9% | -823.6% | -38.0% | |
| Gross Margin | 52.3% | 44.6% | 33.5% | 10.5% | -43.5% | -54.0% |
| EBITDA Margin | 81.8% | 50.0% | 15.6% | -132.0% | -108.2% | 23.9% |
| Net Income Margin | 73.5% | 42.2% | 7.7% | -144.7% | -127.0% | 17.7% |
| SG&A, % of revenue | 14.6% | 12.3% | 11.2% | 14.9% | 17.9% | 3.0% |
| CAPEX, % of revenue | 14.9% | 19.3% | 28.6% | 17.7% | 14.3% | -3.4% |
| ROIC | 18.4% | 9.4% | 0.9% | -25.7% | -21.8% | 3.9% |
| ROE | 18.2% | 9.5% | 1.4% | -25.7% | -21.7% | 4.0% |
| Net Debt/EBITDA | -1.9x | -2.7x | -9.2x | | | 0.0x |
Revenue and profitability
Asian Citrus Hldgs's Revenue dropped on 24.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 23.9 pp from -132% to -108% in FY2015.
Gross Margin dropped on 54.0 pp from 10.5% to -43.5% in FY2015. SG&A as a % of Revenue increased on 3.0 pp from 14.9% to 17.9% in FY2015.
Net Income marign surged on 17.7 pp from -145% to -127% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Asian Citrus Hldgs had CAPEX/Revenue of 14.3%. The company showed decline in CAPEX/Revenue of 5.0 pp from 19.3% in FY2012 to 14.3% in FY2015. For the last three years the average CAPEX/Revenue was 20.2%.
Return on investment
The company operates at negative ROIC (-21.85%) and ROE (-21.71%). ROIC increased on 3.9 pp from -25.7% to -21.8% in FY2015. ROE increased on 4.0 pp from -25.7% to -21.7% in FY2015.
Leverage (Debt)
Debt level is 2.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt dropped on 13.6% in FY2015 while cash dropped on 48.0% in FY2015.
Appendix 1: Peers in Food Producers
Below you can find Asian Citrus Hldgs benchmarking vs. other companies in Food Producers 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 | 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 ($THL) | | 24.8% | 19.0% | 9.3% | 2.8% |
| |
|---|
| Median (18 companies) | 25.5% | 11.5% | 6.5% | 0.9% | 2.9% |
|---|
| Asian Citrus Hldgs ($ACHL) | | 25.7% | -16.3% | -14.5% | -24.3% |
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 ($AGRO) | 19.5% | 28.8% | 22.1% | 33.6% | |
| |
|---|
| Median (15 companies) | 25.0% | 28.8% | 22.0% | 32.5% | 22.4% |
|---|
| Asian Citrus Hldgs ($ACHL) | 52.3% | 44.6% | 33.5% | 10.5% | -43.5% |
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 ($AGRO) | 10.9% | 20.6% | 15.5% | 28.1% | |
| |
|---|
| Median (18 companies) | 10.9% | 13.2% | 10.1% | 12.1% | 11.7% |
|---|
| Asian Citrus Hldgs ($ACHL) | 81.8% | 50.0% | 15.6% | -132.0% | -108.2% |
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 ($AVGR) | 26.3% | 51.1% | 28.0% | 18.4% | |
| R.E.A.Hldgs ($RE.B) | 13.2% | 40.3% | 10.9% | 11.8% | |
| Cherkizovo Group OJSC ($CHE) | 15.3% | 11.7% | 10.0% | 9.7% | |
| |
|---|
| Median (18 companies) | 10.8% | 6.7% | 6.4% | 4.8% | 5.1% |
|---|
| Asian Citrus Hldgs ($ACHL) | 14.9% | 19.3% | 28.6% | 17.7% | 14.3% |
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% | |
| Origin Enterprises ($OGN) | 15.4% | 13.2% | 15.3% | 16.9% | 20.1% |
| |
|---|
| Median (18 companies) | 11.7% | 12.2% | 7.9% | 12.0% | 6.2% |
|---|
| Asian Citrus Hldgs ($ACHL) | 18.4% | 9.4% | 0.9% | -25.7% | -21.8% |
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 (17 companies) | 2.0x | 1.9x | 1.7x | 1.6x | 0.6x |
|---|
