Dairy Farm International Hldgs reports 9.7% EBITDA decline while 1.2% Revenue growth
03 Mar 2016 • About Dairy Farm International Hldgs (
$DFIB) • By InTwits
Dairy Farm International Hldgs reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 5.8% in 2015 vs. 6.6% in 2014 vs. 7.6% in 2011
- Dairy Farm International Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's a lot of higher than industry average of 12.3%.
- CAPEX is quite volatile: 2,609 in 2015, 1,584 in 2014, 756 in 2013, 516 in 2012, 689 in 2011
- The company has highly profitable business model: ROIC is at 21.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dairy Farm International Hldgs ($DFIB) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,134 | 9,801 | 10,357 | 11,008 | 11,137 | 1.2% |
| Gross Profit | 2,682 | 2,830 | 3,087 | 3,291 | 3,285 | -0.2% |
| SG&A | 2,280 | 2,499 | 2,714 | 2,926 | 3,025 | 3.4% |
| EBITDA | 697 | 644 | 717 | 721 | 651 | -9.7% |
| Net Income | 484 | 447 | 501 | 509 | 424 | -16.6% |
Balance Sheet
|
|---|
| Cash | 730 | 667 | 728 | 662 | 259 | -61.0% |
| Short Term Debt | 130 | 56 | 48 | 93 | 730 | 681.2% |
| Long Term Debt | 133 | 91 | 43 | 94 | 11 | -88.7% |
Cash flow
|
|---|
| Capex | 214 | 290 | 296 | 297 | 262 | -11.8% |
Ratios
|
|---|
| Revenue growth | 14.6% | 7.3% | 5.7% | 6.3% | 1.2% | |
| EBITDA growth | 11.3% | -7.5% | 11.3% | 0.5% | -9.7% | |
| Gross Margin | 29.4% | 28.9% | 29.8% | 29.9% | 29.5% | -0.4% |
| EBITDA Margin | 7.6% | 6.6% | 6.9% | 6.6% | 5.8% | -0.7% |
| Net Income Margin | 5.3% | 4.6% | 4.8% | 4.6% | 3.8% | -0.8% |
| SG&A, % of revenue | 25.0% | 25.5% | 26.2% | 26.6% | 27.2% | 0.6% |
| CAPEX, % of revenue | 2.3% | 3.0% | 2.9% | 2.7% | 2.4% | -0.3% |
| ROIC | 39.6% | 32.8% | 34.6% | 31.1% | 21.6% | -9.5% |
| ROE | 58.5% | 42.2% | 40.5% | 37.6% | 30.3% | -7.3% |
| Net Debt/EBITDA | -0.7x | -0.8x | -0.9x | -0.7x | 0.7x | 1.4x |
Revenue and profitability
The company's Revenue increased slightly on 1.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.3 pp from 20.8% to 22.0% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased slightly on 0.58 pp from 26.6% to 27.2% in 2015.
Net Income marign decreased slightly on 0.81 pp from 4.6% to 3.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
Dairy Farm International Hldgs's CAPEX/Revenue was 2.4% in 2015. The company showed small CAPEX/Revenue decline of 0.60 pp from 3.0% in 2012 to 2.4% in 2015. It's average CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at high and attractive ROIC (21.64%) and ROE (30.27%). ROIC decreased on 9.5 pp from 31.1% to 21.6% in 2015. ROE decreased on 7.3 pp from 37.6% to 30.3% in 2015.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA surged on 1.4x from -0.7x to 0.7x in 2015. Debt jumped on 295% in 2015 while cash dropped on 61.0% in 2015.
Appendix 1: Peers in Food & Drug Retailers
Below we provide Dairy Farm International Hldgs 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 |
|---|
| Lenta Ltd ($LNTA) | | 22.4% | 31.3% | 34.5% | 30.3% |
| Magnit PJSC ($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 ($OKEY) | 12.7% | 26.0% | 18.9% | 9.0% | |
| |
|---|
| Median (8 companies) | 32.6% | 15.2% | 8.7% | 10.5% | 17.1% |
|---|
| Dairy Farm International Hldgs ($DFIB) | | 7.3% | 5.7% | 6.3% | 1.2% |
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% |
| 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% | |
| X5 Retail Group N.V ($89VS) | 23.8% | 23.6% | 24.4% | 24.5% | |
| |
|---|
| Median (8 companies) | 23.3% | 23.6% | 24.1% | 24.5% | 23.3% |
|---|
| Dairy Farm International Hldgs ($DFIB) | 29.4% | 28.9% | 29.8% | 29.9% | 29.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jardine Matheson Hldgs ($J36) | 24.4% | 13.1% | 11.6% | 11.8% | 12.8% |
| Magnit PJSC ($MGNT) | 7.8% | 10.3% | 11.0% | 11.3% | 10.9% |
| Lenta Ltd ($LNTA) | 9.3% | 10.7% | 11.2% | 11.0% | 11.1% |
| 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% | |
| |
|---|
| Median (8 companies) | 7.9% | 7.5% | 7.2% | 7.5% | 10.9% |
|---|
| Dairy Farm International Hldgs ($DFIB) | 7.6% | 6.6% | 6.9% | 6.6% | 5.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lenta Ltd ($LNTA) | 4.4% | 13.4% | 16.2% | 17.9% | 12.3% |
| 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% | 3.6% |
| |
|---|
| Median (8 companies) | 4.0% | 5.1% | 4.3% | 4.0% | 5.7% |
|---|
| Dairy Farm International Hldgs ($DFIB) | 2.3% | 3.0% | 2.9% | 2.7% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Magnit PJSC ($MGNT) | 17.9% | 23.1% | 26.0% | 33.2% | 32.6% |
| Lenta Ltd ($LNTA) | 44.1% | 42.9% | 34.0% | 24.5% | 20.3% |
| O'Key Group Sa ($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% | 9.5% |
| |
|---|
| Median (8 companies) | 14.9% | 8.5% | 12.4% | 12.6% | 9.5% |
|---|
| Dairy Farm International Hldgs ($DFIB) | 39.6% | 32.8% | 34.6% | 31.1% | 21.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Snacktime ($SNAK) | 0.8x | 2.0x | 6.0x | 4.4x | |
| Lenta Ltd ($LNTA) | 2.4x | 2.2x | 2.5x | 2.8x | 1.9x |
| O'Key Group Sa ($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 | 1.3x |
| |
|---|
| Median (8 companies) | 1.3x | 1.3x | 1.3x | 1.7x | 0.9x |
|---|
| Dairy Farm International Hldgs ($DFIB) | -0.7x | -0.8x | -0.9x | -0.7x | 0.7x |
