Origin Enterprises Net Income dropped on 25.2% in 2016 and EBITDA Margin decreased slightly on 1.4 pp from 6.8% to 5.4%
28 Sep 2016 • About Origin Enterprises (
$OGN) • By InTwits
Origin Enterprises reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 5.4% in FY2016 vs. 6.8% in FY2015 vs. 4.9% in FY2012
- Origin Enterprises has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has highly profitable business model: ROIC is at 15.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Origin Enterprises ($OGN) key annual financial indicators
| mln. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,340 | 1,418 | 1,415 | 1,458 | 1,521 | 4.3% |
| Gross Profit | 191 | 193 | 219 | 226 | 221 | -2.5% |
| SG&A | 122 | 124 | 139 | 147 | 153 | 4.0% |
| EBITDA | 65 | 79 | 84 | 99 | 82 | -17.3% |
| Net Income | 43 | 73 | 63 | 77 | 58 | -25.2% |
Balance Sheet
|
|---|
| Cash | 95 | 125 | 140 | 199 | 168 | -15.6% |
| Short Term Debt | 7 | 5 | 35 | 40 | 9 | -77.6% |
| Long Term Debt | 156 | 151 | 116 | 100 | 159 | 59.0% |
Cash flow
|
|---|
| Capex | 6 | 8 | 12 | 9 | 7 | -22.1% |
Ratios
|
|---|
| Revenue growth | 6.6% | 5.8% | -0.2% | 3.0% | 4.3% | |
| EBITDA growth | -5.0% | 20.9% | 6.6% | 18.4% | -17.3% | |
| Gross Margin | 14.3% | 13.6% | 15.5% | 15.5% | 14.5% | -1.0% |
| EBITDA Margin | 4.9% | 5.5% | 5.9% | 6.8% | 5.4% | -1.4% |
| Net Income Margin | 3.2% | 5.1% | 4.5% | 5.3% | 3.8% | -1.5% |
| SG&A, % of revenue | 9.1% | 8.7% | 9.9% | 10.1% | 10.1% | -0.0% |
| CAPEX, % of revenue | 0.4% | 0.6% | 0.9% | 0.6% | 0.4% | -0.2% |
| ROIC | 13.2% | 15.3% | 16.9% | 20.1% | 15.3% | -4.9% |
| ROE | 18.6% | 28.2% | 25.5% | 30.5% | 20.6% | -9.9% |
| Net Debt/EBITDA | 1.0x | 0.4x | 0.1x | -0.6x | -0.0x | 0.6x |
Revenue and profitability
Origin Enterprises's Revenue increased on 4.3% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.8 pp from 10.5% to 13.3% in 2016.
Gross Margin decreased slightly on 1.0 pp from 15.5% to 14.5% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased slightly on 1.5 pp from 5.3% to 3.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Origin Enterprises had CAPEX/Revenue of 0.45%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 0.63%.
Return on investment
The company operates at high and attractive ROE (20.58%) while ROIC is a bit lower (15.26%). ROIC decreased on 4.9 pp from 20.1% to 15.3% in FY2016. ROE decreased on 9.9 pp from 30.5% to 20.6% in FY2016.
Leverage (Debt)
Debt level is -0.0x Net Debt / EBITDA and 2.0x Debt / EBITDA. Net Debt / EBITDA surged on 0.6x from -0.6x to -0.0021x in FY2016. Debt jumped on 20.1% in FY2016 while cash dropped on 15.6% in FY2016.
Appendix 1: Peers in Food Producers
Below we provide Origin Enterprises 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 ($KYGA) | 10.3% | -0.2% | -1.4% | 6.1% | |
| |
|---|
| Median (20 companies) | 11.5% | 6.6% | -4.1% | -5.3% | 0.6% |
|---|
| Origin Enterprises ($OGN) | | 5.8% | -0.2% | 3.0% | 4.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Walcom Group Ltd ($WALG) | 62.6% | 63.2% | 62.2% | 60.5% | |
| Narborough Plantations ($NBP) | 64.9% | 55.5% | 59.7% | 54.6% | 56.2% |
| Kakuzi ($KAKU) | 42.8% | 29.8% | 33.0% | 49.2% | |
| Zambeef Products ($ZAM) | 33.6% | 34.5% | 33.7% | 43.2% | |
| Ros Agro ($AGRO) | 28.8% | 22.1% | 33.6% | 42.1% | |
| |
|---|
| Median (18 companies) | 28.8% | 22.1% | 32.5% | 24.6% | 26.6% |
|---|
| Origin Enterprises ($OGN) | 14.3% | 13.6% | 15.5% | 15.5% | 14.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mhp Sa ($MHPC) | 33.2% | 26.1% | 37.0% | 38.8% | |
| Narborough Plantations ($NBP) | 58.1% | 42.5% | 39.6% | 37.4% | 40.8% |
| Ros Agro ($AGRO) | 20.6% | 15.5% | 28.1% | 34.6% | |
| R.E.A.Hldgs ($RE.B) | 35.3% | 34.0% | 33.2% | 31.1% | |
| Kakuzi ($KAKU) | 28.0% | 14.9% | 11.8% | 29.4% | |
| |
|---|
| Median (20 companies) | 16.4% | 10.1% | 10.3% | 12.1% | 12.4% |
|---|
| Origin Enterprises ($OGN) | 4.9% | 5.5% | 5.9% | 6.8% | 5.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kakuzi ($KAKU) | 20.1% | 20.8% | 22.0% | 24.9% | |
| R.E.A.Hldgs ($RE.B) | 40.3% | 10.9% | 11.8% | 17.4% | |
| Avangardco Investments Public Ltd ($AVGR) | 51.1% | 28.0% | 18.4% | 16.2% | |
| Zambeef Products ($ZAM) | 9.2% | 4.6% | 4.8% | 15.9% | |
| Ros Agro ($AGRO) | 20.0% | 10.5% | 7.3% | 15.3% | |
| |
|---|
| Median (20 companies) | 7.4% | 6.4% | 5.5% | 5.5% | 6.9% |
|---|
| Origin Enterprises ($OGN) | 0.4% | 0.6% | 0.9% | 0.6% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ros Agro ($AGRO) | 7.2% | 4.0% | 23.8% | 23.2% | |
| Mhp Sa ($MHPC) | 18.4% | 11.2% | 17.6% | 17.6% | |
| Kakuzi ($KAKU) | 11.4% | 4.7% | 4.3% | 17.4% | |
| Kerry Group ($KYGA) | 10.6% | 5.2% | 16.6% | 15.8% | |
| Fyffes ($FFY) | 16.4% | 17.2% | 18.5% | 14.7% | |
| |
|---|
| Median (20 companies) | 12.2% | 5.9% | 9.7% | 8.2% | 5.2% |
|---|
| Origin Enterprises ($OGN) | 13.2% | 15.3% | 16.9% | 20.1% | 15.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| R.E.A.Hldgs ($RE.B) | 3.1x | 4.4x | 3.9x | 7.2x | |
| Tate & Lyle ($BD15) | 1.0x | 1.2x | 1.2x | 4.0x | 1.8x |
| Real Good Food ($RGD) | | 2.5x | 5.7x | 3.2x | 1.3x |
| Cherkizovo Group OJSC ($CHE) | 2.7x | 4.4x | 1.6x | 3.1x | |
| Zambeef Products ($ZAM) | 6.3x | 4.7x | 4.8x | 3.0x | |
| |
|---|
| Median (17 companies) | 1.4x | 1.7x | 1.7x | 1.8x | 1.6x |
|---|
| Origin Enterprises ($OGN) | 1.0x | 0.4x | 0.1x | -0.6x | -0.0x |
