Avangardco Investments Public Ltd reports 131% EBITDA decline and 48.3 pp EBITDA Margin decline from 30.9% to -17.4%
30 Mar 2016 • About Avangardco Investments Public Ltd (
$AVGR) • By InTwits
Avangardco Investments Public Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Avangardco Investments Public Ltd is a company in decline: 2015 revenue growth was -44.9%, 5 years revenue CAGR was -12.1%
- EBITDA Margin is quite volatile: -17.4% in 2015, 30.9% in 2014, 45.6% in 2013, 44.5% in 2012, 44.4% in 2011
- Avangardco Investments Public Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 28.0%. At the same time it's a lot of higher than industry average of 8.3%.
- CAPEX is quite volatile: 37.4 in 2015, 77.0 in 2014, 185 in 2013, 322 in 2012, 146 in 2011
- The company has unprofitable business model: ROIC is at -7.3%
- It operates with high leverage: Net Debt/EBITDA is 1.0x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Avangardco Investments Public Ltd ($AVGR) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 553.3 | 629.3 | 661.2 | 419.6 | 231.3 | -44.9% |
| Gross Profit | 200.1 | 232.3 | 231.5 | 105.6 | 22.1 | -79.1% |
| SG&A | | | | | 18.0 | |
| EBITDA | 245.8 | 279.8 | 301.2 | 129.5 | -40.3 | -131.1% |
| Net Income | 191.9 | 225.4 | 236.0 | -26.1 | -154.6 | 492.4% |
Balance Sheet
|
|---|
| Cash | 237.8 | 204.3 | 156.8 | 117.9 | 31.3 | -73.4% |
| Short Term Debt | 104.6 | 151.5 | 64.5 | 264.0 | 69.0 | -73.9% |
| Long Term Debt | 213.8 | 201.0 | 258.6 | 79.9 | 267.3 | 234.5% |
Cash flow
|
|---|
| Capex | 145.6 | 321.6 | 184.8 | 77.0 | 37.4 | -51.4% |
Ratios
|
|---|
| Revenue growth | 25.8% | 13.7% | 5.1% | -36.5% | -44.9% | |
| EBITDA growth | 27.0% | 13.8% | 7.7% | -57.0% | -131.1% | |
| Gross Margin | 36.2% | 36.9% | 35.0% | 25.2% | 9.6% | -15.6% |
| EBITDA Margin | 44.4% | 44.5% | 45.6% | 30.9% | -17.4% | -48.3% |
| Net Income Margin | 34.7% | 35.8% | 35.7% | -6.2% | -66.9% | -60.6% |
| SG&A, % of revenue | | | | | 7.8% | 7.8% |
| CAPEX, % of revenue | 26.3% | 51.1% | 28.0% | 18.4% | 16.2% | -2.2% |
| ROIC | 20.4% | 19.1% | 16.8% | 7.8% | -7.3% | -15.1% |
| ROE | 23.1% | 21.7% | 18.6% | -2.6% | -36.8% | -34.2% |
| Net Debt/EBITDA | 0.3x | 0.5x | 0.6x | 1.7x | | -1.7x |
Revenue and profitability
Avangardco Investments Public Ltd's Revenue dropped on 44.9% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 48.3 pp from 30.9% to -17.4% in 2015.
Gross Margin dropped on 15.6 pp from 25.2% to 9.6% in 2015.
Net Income marign dropped on 60.6 pp from -6.2% to -66.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Avangardco Investments Public Ltd had CAPEX/Revenue of 16.2%. CAPEX/Revenue dropped on 34.9 pp from 51.1% in 2012 to 16.2% in 2015. For the last three years the average CAPEX/Revenue was 20.8%.
Return on investment
The company operates at negative ROIC (-7.27%) and ROE (-36.83%). ROIC dropped on 15.1 pp from 7.8% to -7.3% in 2015. ROE dropped on 34.2 pp from -2.6% to -36.8% in 2015.
Leverage (Debt)
Debt level is 1.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 1.7x from 1.7x to in 2015. Debt decreased on 2.2% in 2015 while cash dropped on 73.4% in 2015.
Appendix 1: Peers in Food Producers
Below you can find Avangardco Investments Public Ltd 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 ($KYGA) | | 10.3% | -0.2% | -1.4% | 6.1% |
| |
|---|
| Median (16 companies) | 29.6% | 10.3% | 6.6% | -0.2% | 2.9% |
|---|
| Avangardco Investments Public Ltd ($AVGR) | | 13.7% | 5.1% | -36.5% | -44.9% |
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 ($ZAM) | 32.3% | 33.6% | 34.5% | 33.7% | 43.2% |
| Ros Agro ($AGRO) | 19.5% | 28.8% | 22.1% | 33.6% | 42.1% |
| Produce Investments ($PIL) | 24.1% | 27.9% | 25.0% | 33.5% | 36.4% |
| |
|---|
| Median (14 companies) | 24.6% | 28.8% | 22.0% | 32.7% | 24.9% |
|---|
| Avangardco Investments Public Ltd ($AVGR) | 36.2% | 36.9% | 35.0% | 25.2% | 9.6% |
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% |
| Ros Agro ($AGRO) | 10.9% | 20.6% | 15.5% | 28.1% | 34.6% |
| Kakuzi ($KAKU) | 43.7% | 28.0% | 14.9% | 11.8% | 29.4% |
| Tongaat Hulett Ltd ($THL) | 20.1% | 18.7% | 18.2% | 19.0% | 16.5% |
| |
|---|
| Median (16 companies) | 10.8% | 9.9% | 9.3% | 8.9% | 14.0% |
|---|
| Avangardco Investments Public Ltd ($AVGR) | 44.4% | 44.5% | 45.6% | 30.9% | -17.4% |
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% |
| Ros Agro ($AGRO) | 25.4% | 20.0% | 10.5% | 7.3% | 15.3% |
| Asian Citrus Hldgs ($ACHL) | 14.9% | 19.3% | 28.6% | 17.7% | 14.3% |
| Mhp Sa ($MHPC) | 19.1% | 18.3% | 10.5% | 8.2% | 12.3% |
| |
|---|
| Median (16 companies) | 8.3% | 6.1% | 4.6% | 4.8% | 5.5% |
|---|
| Avangardco Investments Public Ltd ($AVGR) | 26.3% | 51.1% | 28.0% | 18.4% | 16.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ros Agro ($AGRO) | 5.4% | 7.2% | 4.0% | 23.8% | 23.2% |
| Origin Enterprises ($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 ($KYGA) | 14.0% | 10.6% | 5.2% | 16.6% | 15.8% |
| |
|---|
| Median (16 companies) | 11.7% | 12.2% | 5.2% | 12.4% | 9.9% |
|---|
| Avangardco Investments Public Ltd ($AVGR) | 20.4% | 19.1% | 16.8% | 7.8% | -7.3% |
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 (15 companies) | 1.7x | 1.4x | 1.6x | 1.5x | 1.8x |
|---|
