C&C Group reports 159% Net Income growth and 17.6 pp EBITDA Margin growth from -4.9% to 12.7%
11 May 2016 • About C&C Group (
$CCR) • By InTwits
C&C Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 12.7% in FY2016, -4.9% in FY2015, 21.0% in FY2014, 27.6% in FY2013, 28.3% in FY2012
- C&C Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 1.5%.
- CAPEX is quite volatile: 9.7 in FY2016, 21.9 in FY2015, 38.5 in FY2014, 24.1 in FY2013, 18.9 in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.0%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.9x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
C&C Group ($CCR) key annual financial indicators
| mln. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 480.8 | 476.9 | 620.2 | 683.9 | 662.6 | -3.1% |
| SG&A | 101.4 | 93.7 | 100.9 | 104.9 | 108.3 | 3.2% |
| EBITDA | 136.3 | 131.7 | 130.0 | -33.5 | 84.2 | -351.3% |
| Net Income | 95.7 | 89.4 | 83.3 | -81.0 | 47.4 | -158.5% |
Balance Sheet
|
|---|
| Cash | 128.3 | 121.0 | 162.8 | 181.9 | 197.3 | 8.5% |
| Short Term Debt | 60.0 | 0.0 | 0.1 | 0.0 | 0.2 | |
| Long Term Debt | 0.0 | 244.4 | 307.9 | 339.7 | 361.1 | 6.3% |
Cash flow
|
|---|
| Capex | 18.9 | 24.1 | 38.5 | 21.9 | 9.7 | -55.7% |
Ratios
|
|---|
| Revenue growth | -5.7% | -0.8% | 30.0% | 10.3% | -3.1% | |
| EBITDA growth | 23.7% | -3.4% | -1.3% | -125.8% | -351.3% | |
| EBITDA Margin | 28.3% | 27.6% | 21.0% | -4.9% | 12.7% | 17.6% |
| Net Income Margin | 19.9% | 18.7% | 13.4% | -11.8% | 7.2% | 19.0% |
| SG&A, % of revenue | 21.1% | 19.6% | 16.3% | 15.3% | 16.3% | 1.0% |
| CAPEX, % of revenue | 3.9% | 5.1% | 6.2% | 3.2% | 1.5% | -1.7% |
| ROIC | 15.0% | 12.2% | 9.7% | -5.1% | 6.0% | 11.1% |
| ROE | 14.1% | 12.0% | 10.2% | -10.0% | 6.5% | 16.5% |
| Net Debt/EBITDA | -0.5x | 0.9x | 1.1x | | 1.9x | 1.9x |
Revenue and profitability
C&C Group's Revenue decreased on 3.1% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 17.6 pp from -4.9% to 12.7% in FY2016.
SG&A as a % of Revenue increased slightly on 1.0 pp from 15.3% to 16.3% in FY2016.
Net Income marign surged on 19.0 pp from -11.8% to 7.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.5% in FY2016. CAPEX/Revenue decreased on 3.6 pp from 5.1% in FY2013 to 1.5% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.6%.
Return on investment
The company operates at low ROIC (6.00%) and ROE (6.50%). ROIC surged on 11.1 pp from -5.1% to 6.0% in FY2016. ROE surged on 16.5 pp from -10.0% to 6.5% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is 4.3x. Net Debt / EBITDA surged1.9x from to 1.9x in FY2016. Debt increased on 6.4% in FY2016 while cash increased on 8.5% in FY2016.
Valuation
C&C Group's trades at EV/EBITDA 2.1x and P/E 0.3x while industy averages are 15.6x and 19.1x. The company's EV/(EBITDA-CAPEX) is 2.4x with the industry average at 19.0x.
Appendix 1: Peers in Beverages
Below we provide C&C Group benchmarking against other companies in Beverages 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.
