Lenta Ltd EBITDA surged on 31.4% in 2015 and Revenue surged on 30.3%
28 Jan 2016 • About Lenta Ltd (
$LNTA) • By InTwits
Lenta Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lenta Ltd is a fast growth stock: 2015 revenue growth was 30.3%, 5 year revenue CAGR was 29.0% at 2015 ROIC 20.3%
- EBITDA Margin is relatively stable: 11.1% in 2015 vs. 11.0% in 2014 vs. 9.3% in 2011
- Lenta Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.8%. At the same time it's a lot of higher than industry average of 5.5%.
- CAPEX is quite volatile: 30,993 in 2015, 34,696 in 2014, 23,394 in 2013, 14,700 in 2012, 3,930 in 2011
- The company has highly profitable business model: ROIC is at 20.3%
- It operates with high leverage: Net Debt/EBITDA is 1.9x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lenta Ltd ($LNTA) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 89,766 | 109,910 | 144,266 | 193,988 | 252,763 | 30.3% |
| Gross Profit | 16,711 | 22,677 | 31,462 | 43,857 | 56,305 | 28.4% |
| SG&A | 9,261 | 11,930 | 16,676 | 24,448 | 30,374 | 24.2% |
| EBITDA | 8,383 | 11,741 | 16,118 | 21,318 | 28,018 | 31.4% |
| Net Income | 1,697 | 5,136 | 7,147 | 9,075 | 10,288 | 13.4% |
Balance Sheet
|
|---|
| Cash | 5,136 | 3,536 | 6,212 | 12,036 | 22,456 | 86.6% |
| Short Term Debt | 0 | 3,833 | 6,143 | 12,695 | 10,792 | -15.0% |
| Long Term Debt | 24,961 | 25,044 | 39,900 | 58,555 | 65,149 | 11.3% |
Cash flow
|
|---|
| Capex | 3,930 | 14,700 | 23,394 | 34,696 | 30,993 | -10.7% |
Ratios
|
|---|
| Revenue growth | 27.1% | 22.4% | 31.3% | 34.5% | 30.3% | |
| EBITDA growth | 36.7% | 40.1% | 37.3% | 32.3% | 31.4% | |
| Gross Margin | 18.6% | 20.6% | 21.8% | 22.6% | 22.3% | -0.3% |
| EBITDA Margin | 9.3% | 10.7% | 11.2% | 11.0% | 11.1% | 0.1% |
| Net Income Margin | 1.9% | 4.7% | 5.0% | 4.7% | 4.1% | -0.6% |
| SG&A, % of revenue | 10.3% | 10.9% | 11.6% | 12.6% | 12.0% | -0.6% |
| CAPEX, % of revenue | 4.4% | 13.4% | 16.2% | 17.9% | 12.3% | -5.6% |
| ROIC | 44.1% | 42.9% | 34.0% | 24.5% | 20.3% | -4.2% |
| ROE | | | | 83.9% | 32.2% | -51.6% |
| Net Debt/EBITDA | 2.4x | 2.2x | 2.5x | 2.8x | 1.9x | -0.9x |
Revenue and profitability
Lenta Ltd's Revenue surged on 30.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.7 pp from 5.9% to 8.6% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue decreased slightly on 0.59 pp from 12.6% to 12.0% in 2015.
Net Income marign decreased slightly on 0.61 pp from 4.7% to 4.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 12.3% in 2015. The company showed small CAPEX/Revenue decline of 1.1 pp from 13.4% in 2012 to 12.3% in 2015. It's average CAPEX/Revenue for the last three years was 15.5%.The company has spent a lot to CAPEX (111% of EBITDA) to secure its growth.
Return on investment
The company operates at high and attractive ROIC (20.30%) and ROE (32.22%). ROIC decreased on 4.2 pp from 24.5% to 20.3% in 2015. ROE dropped on 51.6 pp from 83.9% to 32.2% in 2015.
Leverage (Debt)
Debt level is 1.9x Net Debt / EBITDA and 2.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from 2.8x to 1.9x in 2015. Debt increased on 6.6% in 2015 while cash jumped on 86.6% in 2015.
Appendix 1: Peers in Food & Drug Retailers
Below we provide Lenta Ltd benchmarking against other companies in Food & Drug Retailers 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 |
|---|
| Magnit PJSC ($MGNT) | | 33.5% | 29.4% | 32.3% | 24.4% |
| X5 Retail Group N.V ($89VS) | 32.6% | 8.0% | 9.0% | 18.5% | |
| Crawshaw Group ($CRAW) | | -0.9% | -0.6% | 11.9% | 17.1% |
| O'Key Group Sa ($OKEY) | 12.7% | 26.0% | 18.9% | 9.0% | |
| Dairy Farm International Hldgs ($DFIB) | 14.6% | 7.3% | 5.7% | 6.3% | |
| |
|---|
| Median (8 companies) | 20.5% | 7.6% | 7.1% | 7.6% | 20.8% |
|---|
| Lenta Ltd ($LNTA) | | 22.4% | 31.3% | 34.5% | 30.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Snacktime ($SNAK) | 55.0% | 56.6% | 51.8% | 55.1% | |
| Crawshaw Group ($CRAW) | 43.6% | 43.3% | 43.7% | 43.8% | 44.4% |
| Dairy Farm International Hldgs ($DFIB) | 29.4% | 28.9% | 29.8% | 29.9% | |
| Magnit PJSC ($MGNT) | 24.3% | 26.5% | 28.5% | 28.9% | 28.5% |
| O'Key Group Sa ($OKEY) | 22.8% | 23.5% | 23.9% | 24.5% | |
| |
|---|
| Median (8 companies) | 24.1% | 25.1% | 26.4% | 26.7% | 36.4% |
|---|
| Lenta Ltd ($LNTA) | 18.6% | 20.6% | 21.8% | 22.6% | 22.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jardine Matheson Hldgs ($J36) | 24.4% | 13.1% | 11.6% | 11.8% | |
| Magnit PJSC ($MGNT) | 7.8% | 10.3% | 11.0% | 11.3% | 10.9% |
| X5 Retail Group N.V ($89VS) | 7.3% | 6.9% | 7.1% | 7.7% | |
| O'Key Group Sa ($OKEY) | 7.9% | 8.1% | 7.3% | 7.3% | |
| Dairy Farm International Hldgs ($DFIB) | 7.6% | 6.6% | 6.9% | 6.6% | |
| |
|---|
| Median (8 companies) | 7.7% | 6.7% | 7.0% | 6.9% | 8.6% |
|---|
| Lenta Ltd ($LNTA) | 9.3% | 10.7% | 11.2% | 11.0% | 11.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| O'Key Group Sa ($OKEY) | 9.3% | 7.1% | 8.7% | 10.6% | |
| Magnit PJSC ($MGNT) | 14.5% | 10.5% | 8.6% | 7.3% | 5.7% |
| X5 Retail Group N.V ($89VS) | 5.1% | 4.6% | 3.8% | 4.5% | |
| Jardine Matheson Hldgs ($J36) | 3.6% | 4.9% | 4.4% | 3.5% | |
| Snacktime ($SNAK) | 2.6% | 5.3% | 4.3% | 3.4% | |
| |
|---|
| Median (8 companies) | 3.6% | 4.7% | 4.1% | 3.4% | 6.0% |
|---|
| Lenta Ltd ($LNTA) | 4.4% | 13.4% | 16.2% | 17.9% | 12.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Magnit PJSC ($MGNT) | 17.9% | 23.1% | 26.0% | 33.2% | 32.6% |
| Dairy Farm International Hldgs ($DFIB) | 39.6% | 32.8% | 34.6% | 31.1% | |
| O'Key Group Sa ($OKEY) | 21.7% | 25.0% | 21.8% | 17.1% | |
| X5 Retail Group N.V ($89VS) | 11.9% | 3.1% | 13.0% | 14.9% | |
| Total Produce ($TOT) | 8.8% | 9.0% | 11.9% | 10.3% | |
| |
|---|
| Median (8 companies) | 14.9% | 8.5% | 12.4% | 12.6% | 19.9% |
|---|
| Lenta Ltd ($LNTA) | 44.1% | 42.9% | 34.0% | 24.5% | 20.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Snacktime ($SNAK) | 0.8x | 2.0x | 6.0x | 4.4x | |
| O'Key Group Sa ($OKEY) | 1.2x | 1.0x | 1.3x | 2.4x | |
| X5 Retail Group N.V ($89VS) | 3.1x | 3.3x | 2.7x | 2.2x | |
| Jardine Matheson Hldgs ($J36) | 0.6x | 1.4x | 1.3x | 1.3x | |
| Magnit PJSC ($MGNT) | 1.3x | 1.1x | 1.1x | 0.9x | 0.9x |
| |
|---|
| Median (8 companies) | 1.0x | 1.0x | 1.2x | 1.1x | -2.4x |
|---|
| Lenta Ltd ($LNTA) | 2.4x | 2.2x | 2.5x | 2.8x | 1.9x |
