Fyffes reports 15.6% revenue growth in 2015 and almost no change in EBITDA Margin of 4.6%
26 Feb 2016 • About Fyffes (
$FFY) • By InTwits
Fyffes reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 4.6% in 2015 vs. 5.1% in 2014 vs. 3.3% in 2011
- Fyffes has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's in pair with industry average of 25.7%.
- CAPEX is quite volatile: 12.3 in 2015, 22.8 in 2014, 18.6 in 2013, 6.3 in 2012, 6.0 in 2011
- The company has highly profitable business model: ROIC is at 14.7%
- It operates with high leverage: Net Debt/EBITDA is 0.9x while industry average is 0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Fyffes ($FFY) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 659.0 | 783.7 | 835.8 | 852.6 | 985.3 | 15.6% |
| Gross Profit | 65.4 | 89.1 | 94.5 | 104.2 | 119.7 | 14.9% |
| SG&A | 48.8 | 62.2 | 65.2 | 84.2 | 86.4 | 2.7% |
| EBITDA | 21.9 | 37.3 | 37.3 | 43.7 | 45.7 | 4.5% |
| Net Income | 11.4 | 23.8 | 25.6 | 33.9 | 27.4 | -19.1% |
Balance Sheet
|
|---|
| Cash | 25.4 | 38.4 | 31.0 | 22.1 | 22.8 | 3.1% |
| Short Term Debt | 17.2 | 20.5 | 28.3 | 24.0 | 60.7 | 153.4% |
| Long Term Debt | 9.4 | 9.3 | 2.3 | 9.8 | 1.3 | -86.4% |
Cash flow
|
|---|
| Capex | 6.0 | 6.3 | 18.6 | 22.8 | 12.3 | -46.3% |
Ratios
|
|---|
| Revenue growth | 5.8% | 18.9% | 6.6% | 2.0% | 15.6% | |
| EBITDA growth | -12.0% | 70.5% | -0.1% | 17.1% | 4.5% | |
| Gross Margin | 9.9% | 11.4% | 11.3% | 12.2% | 12.1% | -0.1% |
| EBITDA Margin | 3.3% | 4.8% | 4.5% | 5.1% | 4.6% | -0.5% |
| Net Income Margin | 1.7% | 3.0% | 3.1% | 4.0% | 2.8% | -1.2% |
| SG&A, % of revenue | 7.4% | 7.9% | 7.8% | 9.9% | 8.8% | -1.1% |
| CAPEX, % of revenue | 0.9% | 0.8% | 2.2% | 2.7% | 1.2% | -1.4% |
| ROIC | 8.8% | 16.4% | 17.2% | 18.5% | 14.7% | -3.8% |
| ROE | 8.0% | 17.5% | 18.1% | 20.5% | 13.8% | -6.7% |
| Net Debt/EBITDA | 0.1x | -0.2x | -0.0x | 0.3x | 0.9x | 0.6x |
Revenue and profitability
The company's Revenue jumped on 15.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.6 pp from 39.4% to 33.8% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue decreased slightly on 1.1 pp from 9.9% to 8.8% in 2015.
Net Income marign decreased slightly on 1.2 pp from 4.0% to 2.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.2%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 2.1%.
Return on investment
The company operates at good ROIC (14.69%) and ROE (13.83%). ROIC decreased on 3.8 pp from 18.5% to 14.7% in 2015. ROE decreased on 6.7 pp from 20.5% to 13.8% in 2015.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA jumped on 0.6x from 0.3x to 0.9x in 2015. Debt surged on 83.6% in 2015 while cash increased on 3.1% in 2015.
Appendix 1: Peers in Food Producers
Below we provide Fyffes 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 ($THL) | | 24.8% | 19.0% | 9.3% | 2.8% |
| |
|---|
| Median (19 companies) | 27.7% | 10.3% | 6.3% | -1.4% | -5.4% |
|---|
| Fyffes ($FFY) | | 18.9% | 6.6% | 2.0% | 15.6% |
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 ($AGRO) | 19.5% | 28.8% | 22.1% | 33.6% | |
| |
|---|
| Median (16 companies) | 26.3% | 28.8% | 23.5% | 32.7% | 22.4% |
|---|
| Fyffes ($FFY) | 9.9% | 11.4% | 11.3% | 12.2% | 12.1% |
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 ($AGRO) | 10.9% | 20.6% | 15.5% | 28.1% | |
| |
|---|
| Median (19 companies) | 10.9% | 16.4% | 10.9% | 11.8% | 10.4% |
|---|
| Fyffes ($FFY) | 3.3% | 4.8% | 4.5% | 5.1% | 4.6% |
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 ($RE.B) | 13.2% | 40.3% | 10.9% | 11.8% | |
| |
|---|
| Median (19 companies) | 13.2% | 7.4% | 8.2% | 4.8% | 5.0% |
|---|
| Fyffes ($FFY) | 0.9% | 0.8% | 2.2% | 2.7% | 1.2% |
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% | |
| Mhp Sa ($MHPC) | 19.4% | 18.4% | 11.2% | 17.6% | |
| Origin Enterprises ($OGN) | 15.4% | 13.2% | 15.3% | 16.9% | 20.1% |
| Kerry Group ($KYGA) | 14.0% | 10.6% | 5.2% | 16.6% | 15.8% |
| |
|---|
| Median (19 companies) | 14.0% | 12.2% | 5.2% | 11.6% | 8.5% |
|---|
| Fyffes ($FFY) | 8.8% | 16.4% | 17.2% | 18.5% | 14.7% |
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 ($UKR) | 4.3x | 2.7x | 4.4x | 3.4x | |
| Glanbia ($GLB) | 3.1x | 1.9x | 1.7x | 2.3x | 2.0x |
| Mhp Sa ($MHPC) | 2.0x | 2.2x | 2.9x | 2.2x | |
| |
|---|
| Median (17 companies) | 1.7x | 1.4x | 1.6x | 1.6x | 1.7x |
|---|
| Fyffes ($FFY) | 0.1x | -0.2x | -0.0x | 0.3x | 0.9x |
