Ros Agro CAPEX surged on 119% in 2015 and Revenue increased on 4.1%
28 Mar 2016 • About Ros Agro (
$AGRO) • By InTwits
Ros Agro reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 34.6% in 2015, 28.1% in 2014, 15.5% in 2013, 20.6% in 2012, 10.9% in 2011
- Ros Agro has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.7%. At the same time it's a lot of higher than industry average of 8.4%.
- CAPEX is quite volatile: 11,423 in 2015, 5,206 in 2014, 4,233 in 2013, 7,433 in 2012, 10,845 in 2011
- The company has highly profitable business model: ROIC is at 23.2%
- It operates with high leverage: Net Debt/EBITDA is 1.8x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ros Agro ($AGRO) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 42,723 | 37,100 | 40,155 | 71,731 | 74,704 | 4.1% |
| Gross Profit | 8,346 | 10,682 | 8,858 | 24,082 | 31,433 | 30.5% |
| SG&A | 4,886 | 5,075 | 5,333 | 4,061 | 8,963 | 120.7% |
| EBITDA | 4,673 | 7,634 | 6,217 | 20,190 | 25,877 | 28.2% |
| Net Income | 2,365 | 4,084 | 3,202 | 20,134 | 23,482 | 16.6% |
Balance Sheet
|
|---|
| Cash | 5,458 | 2,020 | 2,673 | 10,316 | 4,402 | -57.3% |
| Short Term Debt | 17,029 | 24,308 | 18,088 | 12,450 | 25,677 | 106.2% |
| Long Term Debt | 14,843 | 24,126 | 14,369 | 9,806 | 24,038 | 145.1% |
Cash flow
|
|---|
| Capex | 10,845 | 7,433 | 4,233 | 5,206 | 11,423 | 119.4% |
Ratios
|
|---|
| Revenue growth | 29.7% | -13.2% | 8.2% | 78.6% | 4.1% | |
| EBITDA growth | -40.6% | 63.4% | -18.6% | 224.7% | 28.2% | |
| Gross Margin | 19.5% | 28.8% | 22.1% | 33.6% | 42.1% | 8.5% |
| EBITDA Margin | 10.9% | 20.6% | 15.5% | 28.1% | 34.6% | 6.5% |
| Net Income Margin | 5.5% | 11.0% | 8.0% | 28.1% | 31.4% | 3.4% |
| SG&A, % of revenue | 11.4% | 13.7% | 13.3% | 5.7% | 12.0% | 6.3% |
| CAPEX, % of revenue | 25.4% | 20.0% | 10.5% | 7.3% | 15.3% | 8.0% |
| ROIC | 5.4% | 7.2% | 4.0% | 23.8% | 23.2% | -0.6% |
| ROE | 11.1% | 14.0% | 9.7% | 46.8% | 38.4% | -8.4% |
| Net Debt/EBITDA | 5.7x | 6.1x | 4.8x | 0.6x | 1.8x | 1.2x |
Revenue and profitability
The company's Revenue increased on 4.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.94 pp from 24.0% to 23.1% in 2015.
Gross Margin increased on 8.5 pp from 33.6% to 42.1% in 2015. SG&A as a % of Revenue increased on 6.3 pp from 5.7% to 12.0% in 2015.
Net Income marign increased on 3.4 pp from 28.1% to 31.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 15.3% in 2015. Ros Agro showed decline in CAPEX/Revenue of 4.7 pp from 20.0% in 2012 to 15.3% in 2015. It's average level of CAPEX/Revenue for the last three years was 11.0%.
Return on investment
The company operates at high and attractive ROIC (23.20%) and ROE (38.43%). ROIC decreased slightly on 0.57 pp from 23.8% to 23.2% in 2015. ROE decreased on 8.4 pp from 46.8% to 38.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.8x and Debt / EBITDA is 1.9x. Net Debt / EBITDA surged on 1.2x from 0.6x to 1.8x in 2015. Debt surged on 123% in 2015 while cash dropped on 57.3% in 2015.
Appendix 1: Peers in Food Producers
Below you can find Ros Agro 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 |
|---|
| Kakuzi ($KAKU) | | 0.3% | -11.5% | 22.1% | 46.9% |
| Fyffes ($FFY) | | 18.9% | 6.6% | 2.0% | 15.6% |
| Cherkizovo Group OJSC ($CHE) | | 12.6% | 8.1% | 31.5% | 11.1% |
| Glanbia ($GLB) | | 14.4% | 7.7% | 6.6% | 9.3% |
| Kerry Group ($KYGA) | | 10.3% | -0.2% | -1.4% | 6.1% |
| |
|---|
| Median (15 companies) | 27.7% | 12.6% | 6.3% | -1.4% | 2.8% |
|---|
| Ros Agro ($AGRO) | | -13.2% | 8.2% | 78.6% | 4.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Narborough Plantations ($NBP) | | 64.9% | 55.5% | 59.7% | 54.6% |
| Kakuzi ($KAKU) | 46.1% | 42.8% | 29.8% | 33.0% | 49.2% |
| Zambeef Products ($ZAM) | 32.3% | 33.6% | 34.5% | 33.7% | 43.2% |
| Produce Investments ($PIL) | 24.1% | 27.9% | 25.0% | 33.5% | 36.4% |
| Mhp Sa ($MHPC) | 27.7% | 28.8% | 20.7% | 32.5% | 29.1% |
| |
|---|
| Median (13 companies) | 26.3% | 28.8% | 23.5% | 29.6% | 24.9% |
|---|
| Ros Agro ($AGRO) | 19.5% | 28.8% | 22.1% | 33.6% | 42.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mhp Sa ($MHPC) | 32.6% | 33.2% | 26.1% | 37.0% | 38.8% |
| Narborough Plantations ($NBP) | | 58.1% | 42.5% | 39.6% | 37.4% |
| Kakuzi ($KAKU) | 43.7% | 28.0% | 14.9% | 11.8% | 29.4% |
| Tongaat Hulett Ltd ($THL) | 20.1% | 18.7% | 18.2% | 19.0% | 16.5% |
| Cherkizovo Group OJSC ($CHE) | 16.0% | 19.9% | 10.9% | 24.4% | 14.7% |
| |
|---|
| Median (15 companies) | 10.8% | 9.9% | 9.3% | 8.9% | 13.8% |
|---|
| Ros Agro ($AGRO) | 10.9% | 20.6% | 15.5% | 28.1% | 34.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kakuzi ($KAKU) | 15.5% | 20.1% | 20.8% | 22.0% | 24.9% |
| Zambeef Products ($ZAM) | 31.6% | 9.2% | 4.6% | 4.8% | 15.9% |
| Asian Citrus Hldgs ($ACHL) | 14.9% | 19.3% | 28.6% | 17.7% | 14.3% |
| Mhp Sa ($MHPC) | 19.1% | 18.3% | 10.5% | 8.2% | 12.3% |
| Cherkizovo Group OJSC ($CHE) | 15.3% | 11.7% | 10.0% | 9.7% | 12.2% |
| |
|---|
| Median (15 companies) | 8.3% | 6.1% | 4.6% | 4.8% | 5.2% |
|---|
| Ros Agro ($AGRO) | 25.4% | 20.0% | 10.5% | 7.3% | 15.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Origin Enterprises ($OGN) | 15.4% | 13.2% | 15.3% | 16.9% | 20.1% |
| Mhp Sa ($MHPC) | 19.4% | 18.4% | 11.2% | 17.6% | 17.6% |
| Kakuzi ($KAKU) | 20.4% | 11.4% | 4.7% | 4.3% | 17.4% |
| Kerry Group ($KYGA) | 14.0% | 10.6% | 5.2% | 16.6% | 15.8% |
| Fyffes ($FFY) | 8.8% | 16.4% | 17.2% | 18.5% | 14.7% |
| |
|---|
| Median (15 companies) | 14.0% | 12.3% | 10.5% | 11.6% | 9.7% |
|---|
| Ros Agro ($AGRO) | 5.4% | 7.2% | 4.0% | 23.8% | 23.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tate & Lyle ($BD15) | | 1.0x | 1.2x | 1.2x | 4.0x |
| Cherkizovo Group OJSC ($CHE) | 3.3x | 2.7x | 4.4x | 1.6x | 3.1x |
| Zambeef Products ($ZAM) | 3.0x | 6.3x | 4.7x | 4.8x | 3.0x |
| Mhp Sa ($MHPC) | 2.0x | 2.2x | 2.9x | 2.2x | 2.7x |
| Kerry Group ($KYGA) | 2.4x | 2.6x | 3.7x | 1.8x | 2.2x |
| |
|---|
| Median (14 companies) | 1.3x | 1.0x | 1.3x | 1.6x | 1.7x |
|---|
| Ros Agro ($AGRO) | 5.7x | 6.1x | 4.8x | 0.6x | 1.8x |
