Total Produce EBITDA increased on 9.8% in 2016 and EBITDA Margin showed almost no change
02 Mar 2017 • About Total Produce (
$TOT) • By InTwits
Total Produce reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 2.3% in FY2016 vs. 2.2% in FY2015 vs. 2.4% in FY2012
- Total Produce has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has business model with low profitability: ROIC is at 9.2%
- It operates with high leverage: Net Debt/EBITDA is 0.7x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Total Produce ($TOT) key annual financial indicators
| mln. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,432 | 2,638 | 2,667 | 2,875 | 3,105 | 8.0% |
| Gross Profit | 339 | 363 | 365 | 396 | 433 | 9.2% |
| SG&A | 304 | 322 | 328 | 357 | | -100.0% |
| EBITDA | 58 | 70 | 63 | 64 | 71 | 9.8% |
| Net Income | 21 | 31 | 29 | 30 | 29 | -5.0% |
Balance Sheet
|
|---|
| Cash | 106 | 103 | 114 | 132 | 130 | -1.9% |
| Short Term Debt | 8 | 5 | 18 | 18 | 48 | 160.7% |
| Long Term Debt | 155 | 114 | 115 | 132 | 130 | -1.3% |
Cash flow
|
|---|
| Capex | 12 | 13 | 11 | 17 | 24 | 47.7% |
Ratios
|
|---|
| Revenue growth | 6.4% | 8.5% | 1.1% | 7.8% | 8.0% | |
| EBITDA growth | 7.6% | 19.9% | -8.9% | 1.6% | 9.8% | |
| Gross Margin | 13.9% | 13.8% | 13.7% | 13.8% | 13.9% | 0.2% |
| EBITDA Margin | 2.4% | 2.6% | 2.4% | 2.2% | 2.3% | 0.0% |
| Net Income Margin | 0.9% | 1.2% | 1.1% | 1.0% | 0.9% | -0.1% |
| SG&A, % of revenue | 12.5% | 12.2% | 12.3% | 12.4% | | -12.4% |
| CAPEX, % of revenue | 0.5% | 0.5% | 0.4% | 0.6% | 0.8% | 0.2% |
| ROIC | 9.0% | 11.9% | 10.3% | 9.5% | 9.2% | -0.3% |
| ROE | 11.6% | 15.3% | 13.5% | 13.2% | 12.3% | -0.9% |
| Net Debt/EBITDA | 1.0x | 0.2x | 0.3x | 0.3x | 0.7x | 0.4x |
Revenue and profitability
The company's Revenue increased on 8.0% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.1 pp from 4.1% to 7.2% in 2016.
Gross Margin showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
Total Produce's CAPEX/Revenue was 0.79% in FY2016. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 0.60%.
Return on investment
The company operates at good ROE (12.27%) while ROIC is low (9.22%). ROIC showed almost no change in FY2016. ROE decreased slightly on 0.90 pp from 13.2% to 12.3% in FY2016.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 2.5x Debt / EBITDA. Net Debt / EBITDA jumped on 0.4x from 0.3x to 0.7x in FY2016. Debt jumped on 18.5% in FY2016 while cash decreased slightly on 1.9% in FY2016.
Appendix 1: Peers in Food & Drug Retailers
Below we provide Total Produce benchmarking against other companies in Food & Drug Retailers industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lenta Ltd ($LNTA) | | 31.3% | 34.5% | 30.3% | 21.2% |
| 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 ($CRAW) | | -0.6% | 11.9% | 17.1% | 50.5% |
| O'Key Group Sa ($OKEY) | 26.0% | 18.9% | 9.0% | 6.9% | |
| |
|---|
| Median (8 companies) | 26.0% | 7.3% | 10.5% | 12.0% | 0.6% |
|---|
| Total Produce ($TOT) | | 8.5% | 1.1% | 7.8% | 8.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Snacktime ($SNAK) | 56.6% | 51.8% | 55.1% | 53.9% | 54.0% |
| 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% | 30.2% |
| Magnit PJSC ($MGNT) | 26.5% | 28.5% | 28.9% | 28.5% | |
| X5 Retail Group N.V ($89VS) | 23.6% | 24.4% | 24.5% | 24.5% | |
| |
|---|
| Median (8 companies) | 25.1% | 26.4% | 26.7% | 26.5% | 30.2% |
|---|
| Total Produce ($TOT) | 13.9% | 13.8% | 13.7% | 13.8% | 13.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jardine Matheson Hldgs ($J36) | 13.1% | 11.6% | 11.8% | 12.8% | 18.2% |
| Lenta Ltd ($LNTA) | 10.7% | 11.2% | 11.0% | 11.1% | 10.2% |
| 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% | 6.0% |
|---|
| Total Produce ($TOT) | 2.4% | 2.6% | 2.4% | 2.2% | 2.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lenta Ltd ($LNTA) | 13.4% | 16.2% | 17.9% | 12.3% | 13.8% |
| 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) | 5.1% | 4.3% | 4.0% | 5.4% | 3.9% |
|---|
| Total Produce ($TOT) | 0.5% | 0.5% | 0.4% | 0.6% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Magnit PJSC ($MGNT) | 23.1% | 26.0% | 33.2% | 32.6% | |
| Dairy Farm International Hldgs ($DFIB) | 32.8% | 34.6% | 31.1% | 21.6% | 18.5% |
| Lenta Ltd ($LNTA) | 42.9% | 34.0% | 24.5% | 20.3% | 16.0% |
| 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) | 15.5% | 17.4% | 16.0% | 13.1% | 9.8% |
|---|
| Total Produce ($TOT) | 9.0% | 11.9% | 10.3% | 9.5% | 9.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| O'Key Group Sa ($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 | 2.8x |
| Jardine Matheson Hldgs ($J36) | 1.4x | 1.3x | 1.3x | 1.3x | 0.8x |
| Magnit PJSC ($MGNT) | 1.1x | 1.1x | 0.9x | 0.9x | |
| |
|---|
| Median (7 companies) | 1.3x | 1.3x | 1.7x | 1.3x | 0.9x |
|---|
| Total Produce ($TOT) | 1.0x | 0.2x | 0.3x | 0.3x | 0.7x |
