Snacktime revenue decreased on 5.3% in 2016 and EBITDA Margin decreased on 7.9 pp from -7.0% to -14.9%
30 Sep 2016 • About Snacktime (
$SNAK) • By InTwits
Snacktime reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Snacktime is a company in decline: FY2016 revenue growth was -5.3%, 5 years revenue CAGR was -2.8%
- The company operates at negative EBITDA Margin: -14.9%
- Snacktime spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -0.4%0
- Snacktime has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's in pair with industry average of 5.1%.
- CAPEX is quite volatile: 0.60 in FY2016, 0.41 in FY2015, 0.63 in FY2014, 0.88 in FY2013, 1.2 in FY2012
- The company has unprofitable business model: ROIC is at -71.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Snacktime ($SNAK) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 22.191 | 20.506 | 18.811 | 16.167 | 15.317 | -5.3% |
| Gross Profit | 12.565 | 10.629 | 10.357 | 8.709 | 8.271 | -5.0% |
| SG&A | | | | 12.756 | 11.630 | -8.8% |
| EBITDA | 1.359 | 0.644 | 1.088 | -1.133 | -2.286 | 101.8% |
| Net Income | -0.051 | -8.312 | -7.742 | -4.068 | -3.523 | -13.4% |
Balance Sheet
|
|---|
| Cash | 2.066 | 1.784 | 1.613 | 0.701 | 0.292 | -58.4% |
| Short Term Debt | 1.544 | 3.778 | 4.616 | 3.298 | 1.422 | -56.9% |
| Long Term Debt | 3.240 | 1.851 | 1.803 | 1.127 | 1.376 | 22.1% |
Cash flow
|
|---|
| Capex | 1.177 | 0.882 | 0.631 | 0.409 | 0.596 | 45.6% |
Ratios
|
|---|
| Revenue growth | 25.9% | -7.6% | -8.3% | -14.1% | -5.3% | |
| EBITDA growth | -35.1% | -52.6% | 68.9% | -204.1% | 101.8% | |
| Gross Margin | 56.6% | 51.8% | 55.1% | 53.9% | 54.0% | 0.1% |
| EBITDA Margin | 6.1% | 3.1% | 5.8% | -7.0% | -14.9% | -7.9% |
| Net Income Margin | -0.2% | -40.5% | -41.2% | -25.2% | -23.0% | 2.2% |
| SG&A, % of revenue | | | | 78.9% | 75.9% | -3.0% |
| CAPEX, % of revenue | 5.3% | 4.3% | 3.4% | 2.5% | 3.9% | 1.4% |
| ROIC | -2.5% | -7.2% | -6.4% | -33.4% | -71.7% | -38.2% |
| ROE | -0.3% | -57.8% | -119.6% | -219.1% | -459.3% | -240.2% |
| Net Debt/EBITDA | 2.0x | 6.0x | 4.4x | | | 0.0x |
Revenue and profitability
The company's Revenue decreased on 5.3% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 7.9 pp from -7.0% to -14.9% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue decreased on 3.0 pp from 78.9% to 75.9% in FY2016.
Net Income marign increased on 2.2 pp from -25.2% to -23.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 3.9%. Snacktime's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 3.3%.
Return on investment
The company operates at negative ROIC (-71.67%) and ROE (-459.26%). ROIC dropped on 38.2 pp from -33.4% to -71.7% in FY2016. ROE dropped on 240 pp from -219% to -459% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 36.8% in FY2016 while cash dropped on 58.4% in FY2016.
Appendix 1: Peers in Food & Drug Retailers
Below you can find Snacktime 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% | |
| Crawshaw Group ($CRAW) | | -0.6% | 11.9% | 17.1% | 50.5% |
| Total Produce ($TOT) | 6.4% | 8.5% | 1.1% | 7.8% | |
| |
|---|
| Median (8 companies) | 8.0% | 8.7% | 10.5% | 12.5% | 50.5% |
|---|
| Snacktime ($SNAK) | | -7.6% | -8.3% | -14.1% | -5.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Crawshaw Group ($CRAW) | 43.3% | 43.7% | 43.8% | 44.4% | 45.1% |
| 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% | 45.1% |
|---|
| Snacktime ($SNAK) | 56.6% | 51.8% | 55.1% | 53.9% | 54.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jardine Matheson Hldgs ($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 ($89VS) | 6.9% | 7.1% | 7.7% | 7.2% | |
| Crawshaw Group ($CRAW) | 3.7% | 3.4% | 6.5% | 6.4% | 1.5% |
| |
|---|
| Median (8 companies) | 7.5% | 7.2% | 7.5% | 6.8% | 1.5% |
|---|
| Snacktime ($SNAK) | 6.1% | 3.1% | 5.8% | -7.0% | -14.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lenta Ltd ($LNTA) | 13.4% | 16.2% | 17.9% | 12.3% | |
| X5 Retail Group N.V ($89VS) | 4.6% | 3.8% | 4.5% | 6.4% | |
| Crawshaw Group ($CRAW) | 1.1% | 1.0% | 1.2% | 6.3% | 6.1% |
| Magnit PJSC ($MGNT) | 10.5% | 8.6% | 7.3% | 5.7% | |
| O'Key Group Sa ($OKEY) | 7.1% | 8.7% | 10.6% | 5.1% | |
| |
|---|
| Median (8 companies) | 4.7% | 4.1% | 4.0% | 5.4% | 6.1% |
|---|
| Snacktime ($SNAK) | 5.3% | 4.3% | 3.4% | 2.5% | 3.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Magnit PJSC ($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% | -1.9% |
|---|
| Snacktime ($SNAK) | -2.5% | -7.2% | -6.4% | -33.4% | -71.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| O'Key Group Sa ($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 (8 companies) | 1.0x | 1.2x | 1.1x | 1.1x | -8.8x |
|---|
