Carr'S Milling Industries revenue decreased on 4.9% in 2016 and EBITDA Margin showed almost no change
14 Nov 2016 • About Carr'S Milling Industries (
$CRM) • By InTwits
Carr'S Milling Industries reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Carr'S Milling Industries is a company in decline: FY2016 revenue growth was -4.9%, 5 years revenue CAGR was -3.3%
- EBITDA Margin is relatively stable: 5.1% in FY2016 vs. 4.7% in FY2015 vs. 4.1% in FY2012
- Carr'S Milling Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 2.7%.
- CAPEX is quite volatile: 18.9 in FY2016, 33 in FY2015, 19 in FY2014, 11.3 in FY2013, 13.2 in FY2012
- The company has business model with low profitability: ROIC is at 8.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Carr'S Milling Industries ($CRM) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 404.1 | 468.1 | 429.0 | 331.3 | 314.9 | -4.9% |
| Gross Profit | 43.9 | 48.6 | 50.3 | 42.7 | 41.2 | -3.6% |
| SG&A | 31.9 | 29.8 | 29.8 | 30.6 | 28.4 | -7.2% |
| EBITDA | 16.7 | 18.8 | 20.5 | 15.5 | 16.2 | 4.3% |
| Net Income | 8.5 | 11.0 | 11.4 | 12.0 | 12.5 | 3.9% |
Balance Sheet
|
|---|
| Cash | 23.3 | 22.9 | 17.3 | 20.1 | 48.4 | 141.4% |
| Short Term Debt | 14.2 | 15.5 | 19.7 | 18.7 | 21.6 | 15.6% |
| Long Term Debt | 11.6 | 29.4 | 22.2 | 25.7 | 18.6 | -27.7% |
Cash flow
|
|---|
| Capex | 8.9 | 9.9 | 7.2 | 4.6 | 5.8 | 25.3% |
Ratios
|
|---|
| Revenue growth | 8.2% | 15.8% | -8.4% | -22.8% | -4.9% | |
| EBITDA growth | 23.3% | 12.3% | 9.1% | -24.4% | 4.3% | |
| Gross Margin | 10.9% | 10.4% | 11.7% | 12.9% | 13.1% | 0.2% |
| EBITDA Margin | 4.1% | 4.0% | 4.8% | 4.7% | 5.1% | 0.5% |
| Net Income Margin | 2.1% | 2.4% | 2.7% | 3.6% | 4.0% | 0.3% |
| SG&A, % of revenue | 7.9% | 6.4% | 6.9% | 9.2% | 9.0% | -0.2% |
| CAPEX, % of revenue | 2.2% | 2.1% | 1.7% | 1.4% | 1.8% | 0.4% |
| ROIC | 12.3% | 11.7% | 11.6% | 8.5% | 8.2% | -0.3% |
| ROE | 14.5% | 16.9% | 15.3% | 14.4% | 13.6% | -0.8% |
| Net Debt/EBITDA | 0.1x | 1.2x | 1.2x | 1.6x | -0.5x | -2.1x |
Revenue and profitability
Carr'S Milling Industries's Revenue decreased on 4.9% in FY2016. EBITDA Margin showed almost no change in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.8% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at good ROE (13.55%) while ROIC is low (8.17%). ROIC showed almost no change in FY2016. ROE decreased slightly on 0.83 pp from 14.4% to 13.6% in FY2016.
Leverage (Debt)
Debt level is -0.5x Net Debt / EBITDA and 2.5x Debt / EBITDA. Net Debt / EBITDA dropped on 2.1x from 1.6x to -0.5x in FY2016. Debt decreased on 9.4% in FY2016 while cash jumped on 141% in FY2016.
Appendix 1: Peers in Food Producers
Below you can find Carr'S Milling Industries benchmarking vs. other companies in Food Producers 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 |
|---|
| 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 ($KYGA) | 10.3% | -0.2% | -1.4% | 6.1% | |
| |
|---|
| Median (20 companies) | 13.2% | 6.3% | -0.8% | -1.9% | 1.9% |
|---|
| Carr'S Milling Industries ($CRM) | | 15.8% | -8.4% | -22.8% | -4.9% |
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 ($AGRO) | 28.8% | 22.1% | 33.6% | 42.1% | |
| |
|---|
| Median (18 companies) | 28.8% | 22.1% | 32.5% | 24.6% | 26.6% |
|---|
| Carr'S Milling Industries ($CRM) | 10.9% | 10.4% | 11.7% | 12.9% | 13.1% |
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 ($KAKU) | 28.0% | 14.9% | 11.8% | 29.4% | |
| |
|---|
| Median (20 companies) | 16.4% | 10.1% | 10.3% | 12.1% | 9.7% |
|---|
| Carr'S Milling Industries ($CRM) | 4.1% | 4.0% | 4.8% | 4.7% | 5.1% |
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 ($AGRO) | 20.0% | 10.5% | 7.3% | 15.3% | |
| |
|---|
| Median (20 companies) | 7.4% | 6.4% | 5.5% | 5.5% | 4.4% |
|---|
| Carr'S Milling Industries ($CRM) | 2.2% | 2.1% | 1.7% | 1.4% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ros Agro ($AGRO) | 7.2% | 4.0% | 23.8% | 23.2% | |
| Origin Enterprises ($OGN) | 13.2% | 15.3% | 16.9% | 20.1% | 15.3% |
| Mhp Sa ($MHPC) | 18.4% | 11.2% | 17.6% | 17.6% | |
| Kakuzi ($KAKU) | 11.4% | 4.7% | 4.3% | 17.4% | |
| Kerry Group ($KYGA) | 10.6% | 5.2% | 16.6% | 15.8% | |
| |
|---|
| Median (20 companies) | 12.2% | 5.9% | 10.1% | 8.5% | 7.3% |
|---|
| Carr'S Milling Industries ($CRM) | 12.3% | 11.7% | 11.6% | 8.5% | 8.2% |
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 ($ZAM) | 6.3x | 4.7x | 4.8x | 3.0x | |
| |
|---|
| Median (17 companies) | 1.4x | 1.7x | 1.7x | 1.8x | 1.2x |
|---|
| Carr'S Milling Industries ($CRM) | 0.1x | 1.2x | 1.2x | 1.6x | -0.5x |
