Glanbia EBITDA surged on 28.0% in 2015 and EBITDA Margin increased slightly on 1.5 pp from 8.9% to 10.4%
24 Feb 2016 • About Glanbia (
$GLB) • By InTwits
Glanbia reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Glanbia has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 12.6%.
- CAPEX is quite volatile: 104 in FY2015, 102 in FY2014, 94.9 in FY2013, 65.9 in FY2012, 38.3 in FY2011
- The company has business model with average profitability: ROIC is at 12.0%
- It operates with high leverage: Net Debt/EBITDA is 2.0x while industry average is 0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Glanbia ($GLB) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,933 | 2,212 | 2,382 | 2,538 | 2,774 | 9.3% |
| Gross Profit | | | | | 694 | |
| SG&A | | | | | 450 | |
| EBITDA | 155 | 203 | 221 | 225 | 288 | 28.0% |
| Net Income | 112 | 145 | 150 | 146 | 183 | 25.3% |
Balance Sheet
|
|---|
| Cash | 231 | 276 | 106 | 110 | 211 | 91.1% |
| Short Term Debt | 53 | 125 | 39 | 0 | 42 | 10,036.8% |
| Long Term Debt | 659 | 527 | 442 | 620 | 753 | 21.4% |
Cash flow
|
|---|
| Capex | 38 | 66 | 95 | 102 | 104 | 1.8% |
Ratios
|
|---|
| Revenue growth | -10.8% | 14.4% | 7.7% | 6.6% | 9.3% | |
| EBITDA growth | -20.2% | 31.0% | 8.5% | 1.9% | 28.0% | |
| Gross Margin | | | | | 25.0% | 25.0% |
| EBITDA Margin | 8.0% | 9.2% | 9.3% | 8.9% | 10.4% | 1.5% |
| Net Income Margin | 5.8% | 6.6% | 6.3% | 5.8% | 6.6% | 0.8% |
| SG&A, % of revenue | | | | | 16.2% | 16.2% |
| CAPEX, % of revenue | 2.0% | 3.0% | 4.0% | 4.0% | 3.7% | -0.3% |
| ROIC | 9.3% | 12.2% | 13.9% | 12.4% | 12.0% | -0.4% |
| ROE | 24.0% | 27.5% | 25.6% | 20.4% | 19.8% | -0.6% |
| Net Debt/EBITDA | 3.1x | 1.9x | 1.7x | 2.3x | 2.0x | -0.2x |
Revenue and profitability
Glanbia's Revenue increased on 9.3% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.0 pp from 42.8% to 43.9% in 2015.
Net Income marign increased slightly on 0.84 pp from 5.8% to 6.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Glanbia's CAPEX/Revenue was 3.7% in FY2015. Glanbia's CAPEX/Revenue increased slightly on 0.76 pp from 3.0% in FY2012 to 3.7% in FY2015. Average CAPEX/Revenue for the last three years was 3.9%.
Return on investment
The company operates at good ROE (19.80%) while ROIC is low (11.98%). ROIC showed almost no change in FY2015. ROE decreased slightly on 0.63 pp from 20.4% to 19.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.0x and Debt / EBITDA is 2.8x. Net Debt / EBITDA dropped on 0.2x from 2.3x to 2.0x in FY2015. Debt jumped on 28.1% in FY2015 while cash surged on 91.1% in FY2015.
Appendix 1: Peers in Food Producers
Below we provide Glanbia 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 ($THL) | | 24.8% | 19.0% | 9.3% | 2.8% |
| |
|---|
| Median (19 companies) | 25.8% | 10.3% | 6.3% | -1.4% | -6.2% |
|---|
| Glanbia ($GLB) | | 14.4% | 7.7% | 6.6% | 9.3% |
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% | 43.2% |
| Ros Agro ($AGRO) | 19.5% | 28.8% | 22.1% | 33.6% | |
| |
|---|
| Median (17 companies) | 25.0% | 28.8% | 22.1% | 32.5% | 19.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Narborough Plantations ($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 (19 companies) | 10.9% | 16.4% | 10.9% | 11.8% | 10.5% |
|---|
| Glanbia ($GLB) | 8.0% | 9.2% | 9.3% | 8.9% | 10.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Agriterra Ltd ($AGTA) | 18.9% | 54.8% | 49.5% | 43.0% | 11.2% |
| 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 ($ACHL) | 14.9% | 19.3% | 28.6% | 17.7% | 14.3% |
| R.E.A.Hldgs ($RE.B) | 13.2% | 40.3% | 10.9% | 11.8% | |
| |
|---|
| Median (19 companies) | 13.2% | 7.4% | 8.2% | 4.8% | 5.1% |
|---|
| Glanbia ($GLB) | 2.0% | 3.0% | 4.0% | 4.0% | 3.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ros Agro ($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 (19 companies) | 14.0% | 12.3% | 5.2% | 11.6% | 8.2% |
|---|
| Glanbia ($GLB) | 9.3% | 12.2% | 13.9% | 12.4% | 12.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zambeef Products ($ZAM) | 3.0x | 6.3x | 4.7x | 4.8x | 3.0x |
| 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 | |
| Mhp Sa ($MHPC) | 2.0x | 2.2x | 2.9x | 2.2x | |
| Tongaat Hulett Ltd ($THL) | 2.5x | 2.4x | 2.1x | 1.8x | 1.8x |
| |
|---|
| Median (17 companies) | 1.3x | 1.0x | 1.3x | 1.5x | 1.6x |
|---|
| Glanbia ($GLB) | 3.1x | 1.9x | 1.7x | 2.3x | 2.0x |
