Agriterra Ltd reports 453% EBITDA decline while 70.1% Revenue growth
18 Nov 2016 • About Agriterra Ltd (
$AGTA) • By InTwits
Agriterra Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Agriterra Ltd doesn't have a profitable business model yet: FY2016 ROIC is -26.9%
- The company operates at negative EBITDA Margin: -29.5%
- Agriterra Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -23.3%0
- Agriterra Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 32.2%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 0.47 in FY2016, 1.2 in FY2015, 5.9 in FY2014, 10.5 in FY2013, 7.6 in FY2012
- The company has unprofitable business model: ROIC is at -26.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Agriterra Ltd ($AGTA) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 13.826 | 21.213 | 13.797 | 10.883 | 18.511 | 70.1% |
| Gross Profit | 1.913 | 2.588 | 1.322 | 0.481 | 1.732 | 260.1% |
| EBITDA | -4.335 | -5.058 | -4.935 | 1.545 | -5.456 | -453.1% |
| Net Income | -6.221 | 20.939 | -8.016 | -13.387 | -8.455 | -36.8% |
Balance Sheet
|
|---|
| Cash | 3.553 | 18.748 | 6.994 | 6.421 | 4.055 | -36.8% |
| Short Term Debt | 0.000 | 3.091 | 2.668 | 3.079 | 1.812 | -41.1% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 1.105 | |
Cash flow
|
|---|
| Capex | 7.575 | 10.505 | 5.935 | 1.217 | 0.465 | -61.8% |
Ratios
|
|---|
| Revenue growth | 1.8% | 53.4% | -35.0% | -21.1% | 70.1% | |
| EBITDA growth | 221.6% | 16.7% | -2.4% | -131.3% | -453.1% | |
| Gross Margin | 13.8% | 12.2% | 9.6% | 4.4% | 9.4% | 4.9% |
| EBITDA Margin | -31.4% | -23.8% | -35.8% | 14.2% | -29.5% | -43.7% |
| Net Income Margin | -45.0% | 98.7% | -58.1% | -123.0% | -45.7% | 77.3% |
| CAPEX, % of revenue | 54.8% | 49.5% | 43.0% | 11.2% | 2.5% | -8.7% |
| ROIC | -18.8% | -13.9% | -11.5% | -0.2% | -26.9% | -26.7% |
| ROE | -18.8% | 41.3% | -14.5% | -33.3% | -39.2% | -5.9% |
| Net Debt/EBITDA | | | | -2.2x | | 2.2x |
Revenue and profitability
The company's Revenue jumped on 70.1% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 8.5 pp from 19.8% to 11.3% in FY2016.
Gross Margin increased on 4.9 pp from 4.4% to 9.4% in FY2016.
Net Income marign surged on 77.3 pp from -123% to -45.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 2.5%. Agriterra Ltd showed big decline in CAPEX/Revenue of 47.0 pp from 49.5% in FY2013 to 2.5% in FY2016. For the last three years the average CAPEX/Revenue was 18.9%.
Return on investment
The company operates at negative ROIC (-26.92%) and ROE (-39.18%). ROIC dropped on 26.7 pp from -0.23% to -26.9% in FY2016. ROE decreased on 5.9 pp from -33.3% to -39.2% in FY2016.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA surged on 2.2x from -2.2x to in FY2016. Debt decreased on 5.3% in FY2016 while cash dropped on 36.8% in FY2016.
Appendix 1: Peers in Food Producers
Below you can find Agriterra Ltd 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 ($KYGA) | 10.3% | -0.2% | -1.4% | 6.1% | |
| |
|---|
| Median (20 companies) | 13.7% | 6.3% | -0.8% | -1.9% | 0.6% |
|---|
| Agriterra Ltd ($AGTA) | | 53.4% | -35.0% | -21.1% | 70.1% |
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 ($AGRO) | 28.8% | 22.1% | 33.6% | 42.1% | |
| |
|---|
| Median (18 companies) | 28.8% | 22.1% | 32.5% | 24.6% | 23.4% |
|---|
| Agriterra Ltd ($AGTA) | 13.8% | 12.2% | 9.6% | 4.4% | 9.4% |
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 ($KAKU) | 28.0% | 14.9% | 11.8% | 29.4% | |
| |
|---|
| Median (20 companies) | 16.4% | 10.1% | 10.3% | 8.8% | 9.2% |
|---|
| Agriterra Ltd ($AGTA) | -31.4% | -23.8% | -35.8% | 14.2% | -29.5% |
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 ($AGRO) | 20.0% | 10.5% | 7.3% | 15.3% | |
| |
|---|
| Median (20 companies) | 6.1% | 4.3% | 4.8% | 5.1% | 2.5% |
|---|
| Agriterra Ltd ($AGTA) | 54.8% | 49.5% | 43.0% | 11.2% | 2.5% |
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 ($KYGA) | 10.6% | 5.2% | 16.6% | 15.8% | |
| |
|---|
| Median (20 companies) | 12.3% | 8.6% | 12.0% | 8.7% | 7.4% |
|---|
| Agriterra Ltd ($AGTA) | -18.8% | -13.9% | -11.5% | -0.2% | -26.9% |
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 ($ZAM) | 6.3x | 4.7x | 4.8x | 3.0x | |
| |
|---|
| Median (17 companies) | 1.0x | 1.6x | 1.6x | 1.8x | 1.1x |
|---|
| Agriterra Ltd ($AGTA) | | | | -2.2x | |
