Kakuzi EBITDA jumped on 266% in 2015 and Revenue jumped on 46.9%
16 Mar 2016 • About Kakuzi (
$KAKU) • By InTwits
Kakuzi reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 29.4% in 2015, 11.8% in 2014, 14.9% in 2013, 28.0% in 2012, 43.7% in 2011
- Kakuzi has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.7%. At the same time it's a lot of higher than industry average of 8.0%.
- CAPEX is quite volatile: 618 in 2015, 371 in 2014, 288 in 2013, 315 in 2012, 241 in 2011
- The company has highly profitable business model: ROIC is at 17.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kakuzi ($KAKU) key annual financial indicators
| mln. KES | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,560 | 1,565 | 1,384 | 1,690 | 2,482 | 46.9% |
| Gross Profit | 719 | 670 | 412 | 557 | 1,221 | 119.1% |
| SG&A | | | | 487 | 655 | 34.4% |
| EBITDA | 681 | 439 | 207 | 199 | 729 | 266.0% |
| Net Income | 550 | 379 | 165 | 160 | 528 | 229.4% |
Balance Sheet
|
|---|
| Cash | 897 | 898 | 905 | 974 | 1,175 | 20.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 241 | 315 | 288 | 371 | 618 | 66.5% |
Ratios
|
|---|
| Revenue growth | -26.2% | 0.3% | -11.5% | 22.1% | 46.9% | |
| EBITDA growth | 15.4% | -35.6% | -52.9% | -3.5% | 266.0% | |
| Gross Margin | 46.1% | 42.8% | 29.8% | 33.0% | 49.2% | 16.2% |
| EBITDA Margin | 43.7% | 28.0% | 14.9% | 11.8% | 29.4% | 17.6% |
| Net Income Margin | 35.2% | 24.2% | 11.9% | 9.5% | 21.3% | 11.8% |
| SG&A, % of revenue | | | | 28.8% | 26.4% | -2.4% |
| CAPEX, % of revenue | 15.5% | 20.1% | 20.8% | 22.0% | 24.9% | 2.9% |
| ROIC | 20.4% | 11.4% | 4.7% | 4.3% | 17.4% | 13.1% |
| ROE | 24.5% | 14.3% | 5.8% | 5.4% | 16.4% | 11.0% |
| Net Debt/EBITDA | -1.3x | -2.0x | -4.4x | -4.9x | -1.6x | 3.3x |
Revenue and profitability
Kakuzi's Revenue surged on 46.9% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 17.6 pp from 11.8% to 29.4% in 2015.
Gross Margin surged on 16.2 pp from 33.0% to 49.2% in 2015. SG&A as a % of Revenue decreased on 2.4 pp from 28.8% to 26.4% in 2015.
Net Income marign surged on 11.8 pp from 9.5% to 21.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 24.9% in 2015. Kakuzi's CAPEX/Revenue increased on 4.8 pp from 20.1% in 2012 to 24.9% in 2015. It's average CAPEX/Revenue for the last three years was 22.5%.To fuel this fast growth the company invested a large share of EBITDA (84.7%) to CAPEX.
Return on investment
The company operates at good ROIC (17.40%) and ROE (16.42%). ROIC jumped on 13.1 pp from 4.3% to 17.4% in 2015. ROE jumped on 11.0 pp from 5.4% to 16.4% in 2015.
Leverage (Debt)
The company has no debt. Cash jumped on 20.7% in 2015.
Appendix 1: Peers in Food Producers
Below we provide Kakuzi 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) | | 12.6% | 8.1% | 31.5% | 11.1% |
| 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% |
| Glanbia ($GLB) | | 14.4% | 7.7% | 6.6% | 9.3% |
| |
|---|
| Median (19 companies) | 29.6% | 12.6% | 6.6% | -1.4% | -1.3% |
|---|
| Kakuzi ($KAKU) | | 0.3% | -11.5% | 22.1% | 46.9% |
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 ($AGRO) | 19.5% | 28.8% | 22.1% | 33.6% | |
| |
|---|
| Median (16 companies) | 24.6% | 28.8% | 22.0% | 29.6% | 23.6% |
|---|
| Kakuzi ($KAKU) | 46.1% | 42.8% | 29.8% | 33.0% | 49.2% |
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% | 38.8% |
| 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 ($AGRO) | 10.9% | 20.6% | 15.5% | 28.1% | |
| |
|---|
| Median (19 companies) | 10.8% | 9.9% | 9.3% | 8.9% | 12.1% |
|---|
| Kakuzi ($KAKU) | 43.7% | 28.0% | 14.9% | 11.8% | 29.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Agriterra Ltd ($AGTA) | 18.9% | 54.8% | 49.5% | 43.0% | 11.2% |
| Avangardco Investments Public Ltd ($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% | |
| Cherkizovo Group OJSC ($CHE) | 15.3% | 11.7% | 10.0% | 9.7% | 12.2% |
| |
|---|
| Median (19 companies) | 8.3% | 6.1% | 4.6% | 4.8% | 5.1% |
|---|
| Kakuzi ($KAKU) | 15.5% | 20.1% | 20.8% | 22.0% | 24.9% |
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 ($FFY) | 8.8% | 16.4% | 17.2% | 18.5% | 14.7% |
| Mhp Sa ($MHPC) | 19.4% | 18.4% | 11.2% | 17.6% | 17.6% |
| Origin Enterprises ($OGN) | 15.4% | 13.2% | 15.3% | 16.9% | 20.1% |
| |
|---|
| Median (19 companies) | 11.7% | 12.3% | 10.5% | 12.4% | 9.3% |
|---|
| Kakuzi ($KAKU) | 20.4% | 11.4% | 4.7% | 4.3% | 17.4% |
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 ($MHPC) | 2.0x | 2.2x | 2.9x | 2.2x | 2.7x |
| |
|---|
| Median (17 companies) | 1.7x | 1.4x | 1.6x | 1.6x | 1.8x |
|---|
| Kakuzi ($KAKU) | -1.3x | -2.0x | -4.4x | -4.9x | -1.6x |
