Glanbia EBITDA jumped on 17.4% in 2016 and EBITDA Margin increased slightly on 1.5 pp from 10.4% to 11.9%
22 Feb 2017 • About Glanbia (
$GLB) • By InTwits
Glanbia reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Glanbia has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's a lot of higher than industry average of 12.4%.
- CAPEX is quite volatile: 540 in FY2016, 758 in FY2015, 1,218 in FY2014, 545 in FY2013, 312 in FY2012
- The company has highly profitable business model: ROIC is at 12.2%
- It operates with high leverage: Net Debt/EBITDA is 1.3x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Glanbia ($GLB) key annual financial indicators
| mln. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,212 | 2,382 | 2,538 | 2,774 | 2,848 | 2.7% |
| Gross Profit | | | | 694 | 781 | 12.5% |
| SG&A | | | | 450 | 494 | 9.8% |
| EBITDA | 203 | 221 | 225 | 288 | 338 | 17.4% |
| Net Income | 145 | 150 | 146 | 183 | 212 | 15.6% |
Balance Sheet
|
|---|
| Cash | 276 | 106 | 110 | 211 | 219 | 3.8% |
| Short Term Debt | 125 | 39 | 0 | 42 | 32 | -23.5% |
| Long Term Debt | 527 | 442 | 620 | 753 | 624 | -17.1% |
Cash flow
|
|---|
| Capex | 66 | 95 | 102 | 104 | 65 | -37.0% |
Ratios
|
|---|
| Revenue growth | 14.4% | 7.7% | 6.6% | 9.3% | 2.7% | |
| EBITDA growth | 31.0% | 8.5% | 1.9% | 28.0% | 17.4% | |
| Gross Margin | | | | 25.0% | 27.4% | 2.4% |
| EBITDA Margin | 9.2% | 9.3% | 8.9% | 10.4% | 11.9% | 1.5% |
| Net Income Margin | 6.6% | 6.3% | 5.8% | 6.6% | 7.4% | 0.8% |
| SG&A, % of revenue | | | | 16.2% | 17.3% | 1.1% |
| CAPEX, % of revenue | 3.0% | 4.0% | 4.0% | 3.7% | 2.3% | -1.4% |
| ROIC | 12.2% | 13.9% | 12.4% | 12.0% | 12.2% | 0.2% |
| ROE | 27.5% | 25.6% | 20.4% | 19.8% | 18.7% | -1.1% |
| Net Debt/EBITDA | 1.9x | 1.7x | 2.3x | 2.0x | 1.3x | -0.7x |
Revenue and profitability
Glanbia's Revenue increased on 2.7% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.1 pp from 4.1% to 7.2% in 2016.
Gross Margin increased on 2.4 pp from 25.0% to 27.4% in 2016. SG&A as a % of Revenue increased slightly on 1.1 pp from 16.2% to 17.3% in 2016.
Net Income marign increased slightly on 0.83 pp from 6.6% to 7.4% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 2.3%. Glanbia's CAPEX/Revenue decreased slightly on 1.7 pp from 4.0% in 2013 to 2.3% in 2016. It's average CAPEX/Revenue for the last three years was 3.4%.
Return on investment
The company operates at good ROIC (12.15%) and ROE (18.66%). ROIC showed almost no change in 2016. ROE decreased slightly on 1.1 pp from 19.8% to 18.7% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 1.9x. Net Debt / EBITDA dropped on 0.7x from 2.0x to 1.3x in 2016. Debt dropped on 17.4% in 2016 while cash increased on 3.8% in 2016.
Appendix 1: Peers in Food Producers
Below you can find Glanbia 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 ($CHE) | 12.6% | 8.1% | 31.5% | 11.1% | |
| Kerry Group ($KYGA) | | -0.2% | -1.4% | 6.1% | 0.4% |
| Ros Agro ($AGRO) | -13.2% | 8.2% | 78.6% | 4.1% | |
| |
|---|
| Median (20 companies) | 13.2% | 6.3% | -4.1% | -5.3% | 1.9% |
|---|
| Glanbia ($GLB) | | 7.7% | 6.6% | 9.3% | 2.7% |
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% | 36.3% |
| Ros Agro ($AGRO) | 28.8% | 22.1% | 33.6% | 42.1% | |
| |
|---|
| Median (18 companies) | 28.8% | 22.0% | 29.6% | 23.4% | 23.4% |
|---|
| Glanbia ($GLB) | | | | 25.0% | 27.4% |
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 ($KAKU) | 28.0% | 14.9% | 11.8% | 29.4% | |
| |
|---|
| Median (20 companies) | 16.4% | 9.5% | 10.1% | 10.5% | 9.7% |
|---|
| Glanbia ($GLB) | 9.2% | 9.3% | 8.9% | 10.4% | 11.9% |
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% | 7.5% |
| Ros Agro ($AGRO) | 20.0% | 10.5% | 7.3% | 15.3% | |
| |
|---|
| Median (20 companies) | 7.4% | 6.4% | 5.5% | 5.5% | 3.1% |
|---|
| Glanbia ($GLB) | 3.0% | 4.0% | 4.0% | 3.7% | 2.3% |
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 ($KYGA) | 10.6% | 5.2% | 16.6% | 15.8% | 13.1% |
| |
|---|
| Median (20 companies) | 12.3% | 5.9% | 9.7% | 8.2% | 7.6% |
|---|
| Glanbia ($GLB) | 12.2% | 13.9% | 12.4% | 12.0% | 12.2% |
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 ($ZAM) | 6.3x | 4.7x | 4.8x | 3.0x | 1.8x |
| |
|---|
| Median (17 companies) | 1.0x | 1.5x | 1.6x | 1.8x | 1.3x |
|---|
| Glanbia ($GLB) | 1.9x | 1.7x | 2.3x | 2.0x | 1.3x |
