Crawshaw Group reports 65.5% EBITDA decline while 50.5% Revenue growth
27 Apr 2016 • About Crawshaw Group (
$CRAW) • By InTwits
Crawshaw Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Crawshaw Group doesn't have a profitable business model yet: FY2016 ROIC is -1.9%
- EBITDA Margin is quite volatile: 1.5% in FY2016, 6.4% in FY2015, 6.5% in FY2014, 3.4% in FY2013, 3.7% in FY2012
- Crawshaw Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's in pair with industry average of 2.3%.
- CAPEX is quite volatile: 2.3 in FY2016, 1.6 in FY2015, 0.25 in FY2014, 0.19 in FY2013, 0.20 in FY2012
- The company has unprofitable business model: ROIC is at -1.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Crawshaw Group ($CRAW) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 18.889 | 18.778 | 21.020 | 24.620 | 37.060 | 50.5% |
| Gross Profit | 8.174 | 8.202 | 9.202 | 10.921 | 16.704 | 53.0% |
| SG&A | | | 8.232 | 9.803 | 17.115 | 74.6% |
| EBITDA | 0.695 | 0.633 | 1.368 | 1.573 | 0.543 | -65.5% |
| Net Income | 0.015 | 0.178 | 0.821 | 0.895 | -0.269 | -130.1% |
Balance Sheet
|
|---|
| Cash | 0.603 | 0.851 | 1.428 | 9.090 | 4.880 | -46.3% |
| Short Term Debt | 0.000 | 0.840 | 0.180 | 0.000 | 0.038 | |
| Long Term Debt | 0.840 | 0.000 | 0.270 | 0.000 | 0.035 | |
Cash flow
|
|---|
| Capex | 0.201 | 0.187 | 0.247 | 1.559 | 2.265 | 45.3% |
Ratios
|
|---|
| Revenue growth | -0.9% | -0.6% | 11.9% | 17.1% | 50.5% | |
| EBITDA growth | -32.0% | -8.9% | 116.2% | 15.0% | -65.5% | |
| Gross Margin | 43.3% | 43.7% | 43.8% | 44.4% | 45.1% | 0.7% |
| EBITDA Margin | 3.7% | 3.4% | 6.5% | 6.4% | 1.5% | -4.9% |
| Net Income Margin | 0.1% | 1.0% | 3.9% | 3.6% | -0.7% | -4.4% |
| SG&A, % of revenue | | | 39.2% | 39.8% | 46.2% | 6.4% |
| CAPEX, % of revenue | 1.1% | 1.0% | 1.2% | 6.3% | 6.1% | -0.2% |
| ROIC | 1.2% | 2.1% | 8.6% | 7.1% | -1.9% | -9.0% |
| ROE | 0.1% | 1.8% | 7.9% | 5.8% | -1.4% | -7.2% |
| Net Debt/EBITDA | 0.3x | -0.0x | -0.7x | -5.8x | -8.8x | -3.1x |
Revenue and profitability
The company's Revenue surged on 50.5% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.7 pp from 8.0% to 11.7% in FY2016.
Gross Margin increased slightly on 0.71 pp from 44.4% to 45.1% in FY2016. SG&A as a % of Revenue increased on 6.4 pp from 39.8% to 46.2% in FY2016.
Net Income marign decreased on 4.4 pp from 3.6% to -0.73% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Crawshaw Group's CAPEX/Revenue was 6.1% in FY2016. Crawshaw Group's CAPEX/Revenue increased on 5.1 pp from 0.99% in FY2013 to 6.1% in FY2016. It's average CAPEX/Revenue for the last three years was 4.5%.To secure this fast growth Crawshaw Group made large investments to CAPEX (417% of EBITDA).
Return on investment
The company operates at negative ROIC (-1.87%) and ROE (-1.36%). ROIC decreased on 9.0 pp from 7.1% to -1.9% in FY2016. ROE decreased on 7.2 pp from 5.8% to -1.4% in FY2016.
Leverage (Debt)
Debt level is -8.8x Net Debt / EBITDA and 0.1x Debt / EBITDA. Net Debt / EBITDA dropped on 3.1x from -5.8x to -8.8x in FY2016. Debt jumped while cash dropped on 46.3% in FY2016.
Appendix 1: Peers in Food & Drug Retailers
Below you can find Crawshaw Group benchmarking vs. other companies in Food & Drug Retailers 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lenta Ltd ($LNTA) | 22.4% | 31.3% | 34.5% | 30.3% | |
| X5 Retail Group N.V ($89VS) | 8.0% | 9.0% | 18.5% | 27.6% | |
| Magnit PJSC ($MGNT) | 33.5% | 29.4% | 32.3% | 24.4% | |
| Total Produce ($TOT) | 6.4% | 8.5% | 1.1% | 7.8% | |
| O'Key Group Sa ($OKEY) | 26.0% | 18.9% | 9.0% | 6.9% | |
| |
|---|
| Median (8 companies) | 15.2% | 8.7% | 7.6% | 7.4% | |
|---|
| Crawshaw Group ($CRAW) | | -0.6% | 11.9% | 17.1% | 50.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Snacktime ($SNAK) | 56.6% | 51.8% | 55.1% | 53.9% | |
| Dairy Farm International Hldgs ($DFIB) | 28.9% | 29.8% | 29.9% | 29.5% | |
| Magnit PJSC ($MGNT) | 26.5% | 28.5% | 28.9% | 28.5% | |
| X5 Retail Group N.V ($89VS) | 23.6% | 24.4% | 24.5% | 24.5% | |
| O'Key Group Sa ($OKEY) | 23.5% | 23.9% | 24.5% | 23.6% | |
| |
|---|
| Median (8 companies) | 23.6% | 24.1% | 24.5% | 24.1% | |
|---|
| Crawshaw Group ($CRAW) | 43.3% | 43.7% | 43.8% | 44.4% | 45.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jardine Matheson Hldgs ($J36) | 13.1% | 11.6% | 11.8% | 12.8% | |
| Lenta Ltd ($LNTA) | 10.7% | 11.2% | 11.0% | 11.1% | |
| Magnit PJSC ($MGNT) | 10.3% | 11.0% | 11.3% | 10.9% | |
| X5 Retail Group N.V ($89VS) | 6.9% | 7.1% | 7.7% | 7.2% | |
| O'Key Group Sa ($OKEY) | 8.1% | 7.3% | 7.3% | 6.1% | |
| |
|---|
| Median (8 companies) | 7.5% | 7.2% | 7.5% | 6.6% | |
|---|
| Crawshaw Group ($CRAW) | 3.7% | 3.4% | 6.5% | 6.4% | 1.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lenta Ltd ($LNTA) | 13.4% | 16.2% | 17.9% | 12.3% | |
| X5 Retail Group N.V ($89VS) | 4.6% | 3.8% | 4.5% | 6.4% | |
| Magnit PJSC ($MGNT) | 10.5% | 8.6% | 7.3% | 5.7% | |
| O'Key Group Sa ($OKEY) | 7.1% | 8.7% | 10.6% | 5.1% | |
| Jardine Matheson Hldgs ($J36) | 4.9% | 4.4% | 3.5% | 3.6% | |
| |
|---|
| Median (8 companies) | 5.1% | 4.3% | 4.0% | 4.4% | |
|---|
| Crawshaw Group ($CRAW) | 1.1% | 1.0% | 1.2% | 6.3% | 6.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Magnit PJSC ($MGNT) | 23.1% | 26.0% | 33.2% | 32.6% | |
| Dairy Farm International Hldgs ($DFIB) | 32.8% | 34.6% | 31.1% | 21.6% | |
| Lenta Ltd ($LNTA) | 42.9% | 34.0% | 24.5% | 20.3% | |
| X5 Retail Group N.V ($89VS) | 3.1% | 13.0% | 14.9% | 15.7% | |
| O'Key Group Sa ($OKEY) | 25.0% | 21.8% | 17.1% | 10.4% | |
| |
|---|
| Median (8 companies) | 16.1% | 17.4% | 16.0% | 13.1% | |
|---|
| Crawshaw Group ($CRAW) | 1.2% | 2.1% | 8.6% | 7.1% | -1.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| O'Key Group Sa ($OKEY) | 1.0x | 1.3x | 2.4x | 2.6x | |
| X5 Retail Group N.V ($89VS) | 3.3x | 2.7x | 2.2x | 2.3x | |
| Lenta Ltd ($LNTA) | 2.2x | 2.5x | 2.8x | 1.9x | |
| Jardine Matheson Hldgs ($J36) | 1.4x | 1.3x | 1.3x | 1.3x | |
| Magnit PJSC ($MGNT) | 1.1x | 1.1x | 0.9x | 0.9x | |
| |
|---|
| Median (7 companies) | 1.3x | 1.3x | 1.7x | 1.3x | |
|---|
| Crawshaw Group ($CRAW) | 0.3x | -0.0x | -0.7x | -5.8x | -8.8x |
