Total Produce revenue growth accelerated from 1.1% in 2014 to 7.8% in 2015
03 Mar 2016 • About Total Produce (
$TOT) • By InTwits
Total Produce reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 2.2% in 2015 vs. 2.4% in 2014 vs. 2.4% in 2011
- Total Produce has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has business model with low profitability: ROIC is at 9.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Total Produce ($TOT) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,284 | 2,432 | 2,638 | 2,667 | 2,875 | 7.8% |
| Gross Profit | 320 | 339 | 363 | 365 | 396 | 8.7% |
| SG&A | 290 | 304 | 322 | 328 | 357 | 9.0% |
| EBITDA | 54 | 58 | 70 | 63 | 64 | 1.6% |
| Net Income | 23 | 21 | 31 | 29 | 30 | 2.8% |
Balance Sheet
|
|---|
| Cash | 90 | 106 | 103 | 114 | 132 | 16.2% |
| Short Term Debt | 25 | 8 | 5 | 18 | 18 | 3.6% |
| Long Term Debt | 141 | 155 | 114 | 115 | 132 | 14.8% |
Cash flow
|
|---|
| Capex | 16 | 12 | 13 | 11 | 17 | 43.9% |
Ratios
|
|---|
| Revenue growth | -2.5% | 6.4% | 8.5% | 1.1% | 7.8% | |
| EBITDA growth | 0.2% | 7.6% | 19.9% | -8.9% | 1.6% | |
| Gross Margin | 14.0% | 13.9% | 13.8% | 13.7% | 13.8% | 0.1% |
| EBITDA Margin | 2.4% | 2.4% | 2.6% | 2.4% | 2.2% | -0.1% |
| Net Income Margin | 1.0% | 0.9% | 1.2% | 1.1% | 1.0% | -0.1% |
| SG&A, % of revenue | 12.7% | 12.5% | 12.2% | 12.3% | 12.4% | 0.1% |
| CAPEX, % of revenue | 0.7% | 0.5% | 0.5% | 0.4% | 0.6% | 0.1% |
| ROIC | 8.8% | 9.0% | 11.9% | 10.3% | 9.5% | -0.7% |
| ROE | 13.6% | 11.6% | 15.3% | 13.5% | 13.2% | -0.3% |
| Net Debt/EBITDA | 1.4x | 1.0x | 0.2x | 0.3x | 0.3x | -0.0x |
Revenue and profitability
Total Produce's Revenue increased on 7.8% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.0 pp from 42.8% to 43.9% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
Total Produce's CAPEX/Revenue was 0.57% in 2015. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 0.50%.
Return on investment
The company operates at good ROE (13.17%) while ROIC is low (9.52%). ROIC decreased slightly on 0.75 pp from 10.3% to 9.5% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.3x and Debt / EBITDA is 2.3x. Net Debt / EBITDA decreased slightly on 0.017x from 0.3x to 0.3x in 2015. Debt surged on 13.3% in 2015 while cash surged on 16.2% in 2015.
Appendix 1: Peers in Food & Drug Retailers
Below we provide Total Produce 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 ($OKEY) | 12.7% | 26.0% | 18.9% | 9.0% | |
| |
|---|
| Median (8 companies) | 32.6% | 15.2% | 7.3% | 10.5% | 17.1% |
|---|
| Total Produce ($TOT) | | 6.4% | 8.5% | 1.1% | 7.8% |
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 ($DFIB) | 29.4% | 28.9% | 29.8% | 29.9% | 29.5% |
| Magnit PJSC ($MGNT) | 24.3% | 26.5% | 28.5% | 28.9% | 28.5% |
| O'Key Group Sa ($OKEY) | 22.8% | 23.5% | 23.9% | 24.5% | |
| |
|---|
| Median (8 companies) | 24.1% | 25.1% | 26.4% | 26.7% | 28.5% |
|---|
| Total Produce ($TOT) | 14.0% | 13.9% | 13.8% | 13.7% | 13.8% |
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% |
|---|
| Total Produce ($TOT) | 2.4% | 2.4% | 2.6% | 2.4% | 2.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lenta Ltd ($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% |
|---|
| Total Produce ($TOT) | 0.7% | 0.5% | 0.5% | 0.4% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Magnit PJSC ($MGNT) | 17.9% | 23.1% | 26.0% | 33.2% | 32.6% |
| Dairy Farm International Hldgs ($DFIB) | 39.6% | 32.8% | 34.6% | 31.1% | 21.6% |
| Lenta Ltd ($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 ($89VS) | 11.9% | 3.1% | 13.0% | 14.9% | |
| |
|---|
| Median (8 companies) | 18.1% | 15.5% | 17.4% | 16.0% | 20.3% |
|---|
| Total Produce ($TOT) | 8.8% | 9.0% | 11.9% | 10.3% | 9.5% |
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) | 1.0x | 1.3x | 1.3x | 1.7x | 0.9x |
|---|
| Total Produce ($TOT) | 1.4x | 1.0x | 0.2x | 0.3x | 0.3x |
