Aer Lingus Group reports 224% Net Income growth and 10.5% Revenue growth
10 Nov 2016 • About Aer Lingus Group (
$AERL) • By InTwits
Aer Lingus Group reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 11.8% in 2015, -1.1% in 2014, 8.9% in 2013, 8.7% in 2012, 13.4% in 2011
- Aer Lingus Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's a lot of higher than industry average of 23.0%.
- CAPEX is quite volatile: 79.9 in 2015, 51.3 in 2014, 33.9 in 2013, 41.1 in 2012, 31.5 in 2011
- The company has highly profitable business model: ROIC is at 31.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Aer Lingus Group ($AERL) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,288 | 1,393 | 1,425 | 1,555 | 1,719 | 10.5% |
| SG&A | 47 | 47 | 47 | 59 | 72 | 21.4% |
| EBITDA | 173 | 121 | 127 | -18 | 202 | -1,241.3% |
| Net Income | 71 | 34 | 34 | -95 | 118 | -224.1% |
Balance Sheet
|
|---|
| Cash | 264 | 313 | 189 | 178 | 183 | 2.9% |
| Short Term Debt | 40 | 42 | 114 | 93 | 30 | -67.9% |
| Long Term Debt | 537 | 490 | 363 | 298 | 288 | -3.1% |
Cash flow
|
|---|
| Capex | 32 | 41 | 34 | 51 | 80 | 55.8% |
Ratios
|
|---|
| Revenue growth | 6.0% | 8.1% | 2.3% | 9.1% | 10.5% | |
| EBITDA growth | 52.5% | -30.1% | 5.7% | -113.9% | -1,241.3% | |
| EBITDA Margin | 13.4% | 8.7% | 8.9% | -1.1% | 11.8% | 12.9% |
| Net Income Margin | 5.5% | 2.4% | 2.4% | -6.1% | 6.9% | 13.0% |
| SG&A, % of revenue | 3.6% | 3.4% | 3.3% | 3.8% | 4.2% | 0.4% |
| CAPEX, % of revenue | 2.4% | 3.0% | 2.4% | 3.3% | 4.6% | 1.4% |
| ROIC | 6.4% | 3.0% | 3.3% | -11.9% | 31.7% | 43.6% |
| ROE | 8.7% | 4.1% | 4.0% | | | 0.0% |
| Net Debt/EBITDA | 1.8x | 1.8x | 2.3x | | 0.7x | 0.7x |
Revenue and profitability
The company's Revenue jumped on 10.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 12.1 pp from 45.9% to 58.0% in 2015.
SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign surged on 13.0 pp from -6.1% to 6.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 4.6%. The company showed small growth in CAPEX/Revenue of 1.7 pp from 3.0% in 2012 to 4.6% in 2015. Average CAPEX/Revenue for the last three years was 3.4%.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.7x and Debt / EBITDA is 1.6x. Net Debt / EBITDA surged0.7x from to 0.7x in 2015. Debt dropped on 18.5% in 2015 while cash increased on 2.9% in 2015.
Appendix 1: Peers in Travel & Leisure
Below you can find Aer Lingus Group benchmarking vs. other companies in Travel & Leisure 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 |
|---|
| Dalata Hotel Group ($DAL) | | 55.4% | 12.0% | 30.4% | 185.4% |
| Everyman Media Group ($EMAN) | | 23.4% | 26.5% | 22.4% | 44.1% |
| Webis Holdings ($WEB) | | 8.7% | 46.3% | -55.0% | 29.7% |
| Paddy Power ($PAP) | | 30.9% | 14.0% | 18.3% | 24.1% |
| Hanatour Service Inc ($TOUR) | | 15.0% | 14.6% | 9.3% | 19.2% |
| |
|---|
| Median (23 companies) | | 13.6% | 8.8% | 6.1% | 7.6% |
|---|
| Aer Lingus Group ($AERL) | | 8.1% | 2.3% | 9.1% | 10.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eclectic Bar Grp ($BAR) | | 79.1% | 78.9% | 79.0% | 79.4% |
| Paddy Power ($PAP) | 91.2% | 84.7% | 82.8% | 81.0% | 74.7% |
| Action Hotels ($AHCG) | 73.2% | 75.1% | 75.0% | 73.3% | 74.0% |
| Dalata Hotel Group ($DAL) | 61.8% | 61.2% | 62.0% | 62.8% | 61.5% |
| Everyman Media Group ($EMAN) | 59.9% | 57.6% | 59.2% | 58.9% | 58.0% |
| |
|---|
| Median (12 companies) | 49.2% | 29.5% | 30.8% | 30.2% | 31.2% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Action Hotels ($AHCG) | 24.0% | 31.0% | 27.9% | 28.6% | 34.3% |
| Air China ($AIRC) | 17.0% | 19.7% | 16.0% | 18.4% | 27.3% |
| Mandarin Oriental International ($MDOB) | 20.9% | 19.5% | 22.4% | 24.0% | 26.2% |
| Ryanair Hldgs ($RYA) | | 22.6% | 21.5% | 20.1% | 25.1% |
| Irish Continental Group ($ICGC) | 18.9% | 17.1% | 18.6% | 27.3% | 23.6% |
| |
|---|
| Median (24 companies) | 12.0% | 13.8% | 15.4% | 12.7% | 12.9% |
|---|
| Aer Lingus Group ($AERL) | 13.4% | 8.7% | 8.9% | -1.1% | 11.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Action Hotels ($AHCG) | 47.8% | 21.0% | 25.6% | 90.0% | 172.4% |
| Everyman Media Group ($EMAN) | 0.0% | 0.0% | 36.4% | 25.9% | 56.4% |
| Marston'S ($MARS) | | 18.0% | 19.3% | 17.5% | 16.2% |
| Young & Co'S Brewery ($YNGN) | | 14.3% | 8.7% | 10.8% | 14.3% |
| Ana Hldgs Inc ($ANA) | | 12.8% | 10.1% | 10.5% | 14.1% |
| |
|---|
| Median (24 companies) | 4.5% | 4.4% | 5.4% | 4.6% | 8.5% |
|---|
| Aer Lingus Group ($AERL) | 2.4% | 3.0% | 2.4% | 3.3% | 4.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Paddy Power ($PAP) | 58.5% | 53.4% | 47.2% | 47.6% | 53.2% |
| Irish Continental Group ($ICGC) | 14.3% | 14.6% | 18.9% | 40.0% | 33.9% |
| Air Partner ($AIP) | | 34.8% | 27.5% | 21.2% | 20.0% |
| Hanatour Service Inc ($TOUR) | 17.4% | 22.5% | 19.9% | 19.6% | 19.4% |
| Ryanair Hldgs ($RYA) | | 9.7% | 10.0% | 9.5% | 13.3% |
| |
|---|
| Median (24 companies) | 8.6% | 6.8% | 7.8% | 4.3% | 5.9% |
|---|
| Aer Lingus Group ($AERL) | 6.4% | 3.0% | 3.3% | -11.9% | 31.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Meikles Ltd ($MIK) | | | 5.1x | 10.7x | 73.1x |
| Action Hotels ($AHCG) | 14.1x | 11.2x | 7.8x | 9.6x | 12.3x |
| Marston'S ($MARS) | | | 6.5x | 14.0x | 8.2x |
| Peel Hotels ($PHO) | | 8.2x | 7.3x | 5.9x | 4.4x |
| Rotala ($ROL) | 1.9x | 2.6x | 3.1x | 2.8x | 3.6x |
| |
|---|
| Median (21 companies) | -0.7x | 1.0x | 2.2x | 1.2x | 2.3x |
|---|
| Aer Lingus Group ($AERL) | 1.8x | 1.8x | 2.3x | | 0.7x |
