Mhp Sa CAPEX surged on 29.0% in 2015 while Revenue dropped on 14.2%
10 Mar 2016 • About Mhp Sa (
$MHPC) • By InTwits
Mhp Sa reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mhp Sa has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.7%. At the same time it's a lot of higher than industry average of 7.8%.
- CAPEX is quite volatile: 145 in 2015, 113 in 2014, 157 in 2013, 258 in 2012, 235 in 2011
- The company has highly profitable business model: ROIC is at 17.6%
- It operates with high leverage: Net Debt/EBITDA is 2.7x while industry average is 0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mhp Sa ($MHPC) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,229 | 1,408 | 1,496 | 1,379 | 1,183 | -14.2% |
| Gross Profit | 340 | 406 | 310 | 448 | 345 | -23.1% |
| SG&A | 106 | 120 | 131 | 111 | 79 | -28.7% |
| EBITDA | 401 | 468 | 391 | 510 | 459 | -10.0% |
| Net Income | 243 | 297 | 156 | -420 | -133 | -68.2% |
Balance Sheet
|
|---|
| Cash | 95 | 95 | 172 | 100 | 59 | -40.4% |
| Short Term Debt | 190 | 323 | 119 | 316 | 263 | -16.8% |
| Long Term Debt | 709 | 817 | 1,183 | 899 | 1,016 | 13.0% |
Cash flow
|
|---|
| Capex | 235 | 258 | 157 | 113 | 145 | 29.0% |
Ratios
|
|---|
| Revenue growth | 30.2% | 14.5% | 6.3% | -7.8% | -14.2% | |
| EBITDA growth | 23.5% | 16.6% | -16.4% | 30.4% | -10.0% | |
| Gross Margin | 27.7% | 28.8% | 20.7% | 32.5% | 29.1% | -3.4% |
| EBITDA Margin | 32.6% | 33.2% | 26.1% | 37.0% | 38.8% | 1.8% |
| Net Income Margin | 19.8% | 21.1% | 10.4% | -30.5% | -11.3% | 19.2% |
| SG&A, % of revenue | 8.7% | 8.6% | 8.7% | 8.0% | 6.7% | -1.4% |
| CAPEX, % of revenue | 19.1% | 18.3% | 10.5% | 8.2% | 12.3% | 4.1% |
| ROIC | 19.4% | 18.4% | 11.2% | 17.6% | 17.6% | -0.0% |
| ROE | 32.0% | 29.1% | 13.2% | -40.4% | -17.5% | 23.0% |
| Net Debt/EBITDA | 2.0x | 2.2x | 2.9x | 2.2x | 2.7x | 0.5x |
Revenue and profitability
The company's Revenue dropped on 14.2% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.8 pp from 37.0% to 38.8% in 2015.
Gross Margin decreased on 3.4 pp from 32.5% to 29.1% in 2015. SG&A as a % of Revenue decreased slightly on 1.4 pp from 8.0% to 6.7% in 2015.
Net Income marign jumped on 19.2 pp from -30.5% to -11.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 12.3%. Mhp Sa showed decline in CAPEX/Revenue of 6.0 pp from 18.3% in 2012 to 12.3% in 2015. Average CAPEX/Revenue for the last three years was 10.3%.
Return on investment
The company operates at low but positive ROIC (17.57%) and negative ROE (-17.47%). ROIC showed almost no change in 2015. ROE surged on 23.0 pp from -40.4% to -17.5% in 2015.
Leverage (Debt)
Debt level is 2.7x Net Debt / EBITDA and 2.8x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from 2.2x to 2.7x in 2015. Debt increased on 5.3% in 2015 while cash dropped on 40.4% in 2015.
Appendix 1: Peers in Food Producers
Below you can find Mhp Sa benchmarking vs. other companies in Food Producers industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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) | | 12.6% | 8.1% | 31.5% | 11.1% |
| 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 ($THL) | | 24.8% | 19.0% | 9.3% | 2.8% |
| |
|---|
| Median (19 companies) | 27.7% | 10.3% | 6.6% | -0.2% | 2.8% |
|---|
| Mhp Sa ($MHPC) | | 14.5% | 6.3% | -7.8% | -14.2% |
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 ($AGRO) | 19.5% | 28.8% | 22.1% | 33.6% | |
| |
|---|
| Median (16 companies) | 24.6% | 28.8% | 23.5% | 29.9% | 22.4% |
|---|
| Mhp Sa ($MHPC) | 27.7% | 28.8% | 20.7% | 32.5% | 29.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Narborough Plantations ($NBP) | | 58.1% | 42.5% | 39.6% | 37.4% |
| R.E.A.Hldgs ($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% | |
| Cherkizovo Group OJSC ($CHE) | 16.0% | 19.9% | 10.9% | 24.4% | 14.7% |
| |
|---|
| Median (19 companies) | 10.8% | 9.9% | 9.3% | 8.9% | 10.4% |
|---|
| Mhp Sa ($MHPC) | 32.6% | 33.2% | 26.1% | 37.0% | 38.8% |
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 ($RE.B) | 13.2% | 40.3% | 10.9% | 11.8% | |
| |
|---|
| Median (19 companies) | 8.3% | 6.1% | 4.6% | 4.8% | 5.0% |
|---|
| Mhp Sa ($MHPC) | 19.1% | 18.3% | 10.5% | 8.2% | 12.3% |
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% | 8.9% |
| Fyffes ($FFY) | 8.8% | 16.4% | 17.2% | 18.5% | 14.7% |
| Origin Enterprises ($OGN) | 15.4% | 13.2% | 15.3% | 16.9% | 20.1% |
| Kerry Group ($KYGA) | 14.0% | 10.6% | 5.2% | 16.6% | 15.8% |
| |
|---|
| Median (19 companies) | 11.7% | 12.2% | 5.2% | 11.6% | 8.9% |
|---|
| Mhp Sa ($MHPC) | 19.4% | 18.4% | 11.2% | 17.6% | 17.6% |
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 |
| Tongaat Hulett Ltd ($THL) | 2.5x | 2.4x | 2.1x | 1.8x | 1.8x |
| |
|---|
| Median (17 companies) | 1.3x | 1.0x | 1.3x | 1.5x | 1.7x |
|---|
| Mhp Sa ($MHPC) | 2.0x | 2.2x | 2.9x | 2.2x | 2.7x |
