Mhp Sa CAPEX dropped on 36.9% in 2016 and Revenue decreased on 4.0%
15 Mar 2017 • About Mhp Sa (
$MHPC) • By InTwits
Mhp Sa reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mhp Sa has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.5%. At the same time it's a lot of higher than industry average of 7.5%.
- CAPEX is quite volatile: 91.7 in FY2016, 145 in FY2015, 113 in FY2014, 157 in FY2013, 258 in FY2012
- The company has highly profitable business model: ROIC is at 16.1%
- It operates with high leverage: Net Debt/EBITDA is 2.6x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mhp Sa ($MHPC) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,408 | 1,496 | 1,379 | 1,183 | 1,135 | -4.0% |
| Gross Profit | 406 | 310 | 448 | 345 | 323 | -6.2% |
| SG&A | 120 | 131 | 111 | 79 | 79 | -0.3% |
| EBITDA | 468 | 391 | 510 | 459 | 421 | -8.3% |
| Net Income | 297 | 156 | -420 | -133 | 53 | -140.1% |
Balance Sheet
|
|---|
| Cash | 95 | 172 | 100 | 59 | 155 | 160.5% |
| Short Term Debt | 323 | 119 | 316 | 263 | 245 | -6.9% |
| Long Term Debt | 817 | 1,183 | 899 | 1,016 | 991 | -2.5% |
Cash flow
|
|---|
| Capex | 258 | 157 | 113 | 145 | 92 | -36.9% |
Ratios
|
|---|
| Revenue growth | 14.5% | 6.3% | -7.8% | -14.2% | -4.0% | |
| EBITDA growth | 16.6% | -16.4% | 30.4% | -10.0% | -8.3% | |
| Gross Margin | 28.8% | 20.7% | 32.5% | 29.1% | 28.5% | -0.7% |
| EBITDA Margin | 33.2% | 26.1% | 37.0% | 38.8% | 37.0% | -1.7% |
| Net Income Margin | 21.1% | 10.4% | -30.5% | -11.3% | 4.7% | 16.0% |
| SG&A, % of revenue | 8.6% | 8.7% | 8.0% | 6.7% | 6.9% | 0.3% |
| CAPEX, % of revenue | 18.3% | 10.5% | 8.2% | 12.3% | 8.1% | -4.2% |
| ROIC | 18.4% | 11.2% | 17.6% | 17.6% | 16.1% | -1.4% |
| ROE | 29.1% | 13.2% | -40.4% | -17.5% | 8.1% | 25.6% |
| Net Debt/EBITDA | 2.2x | 2.9x | 2.2x | 2.7x | 2.6x | -0.1x |
Revenue and profitability
Mhp Sa's Revenue decreased on 4.0% in FY2016. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from 38.8% to 37.0% in FY2016.
Gross Margin decreased slightly on 0.66 pp from 29.1% to 28.5% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign surged on 16.0 pp from -11.3% to 4.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Mhp Sa's CAPEX/Revenue was 8.1% in FY2016. CAPEX/Revenue decreased on 2.4 pp from 10.5% in FY2013 to 8.1% in FY2016. It's average CAPEX/Revenue for the last three years was 9.5%.
Return on investment
The company operates at good ROIC (16.15%) while ROE is low (8.09%). ROIC decreased slightly on 1.4 pp from 17.6% to 16.1% in FY2016. ROE surged on 25.6 pp from -17.5% to 8.1% in FY2016.
Leverage (Debt)
Debt level is 2.6x Net Debt / EBITDA and 2.9x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from 2.7x to 2.6x in FY2016. Debt decreased on 3.4% in FY2016 while cash surged on 160% in FY2016.
Appendix 1: Peers in Food Producers
Below we provide Mhp Sa benchmarking against other companies in Food Producers 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 |
|---|
| Kakuzi ($KAKU) | 0.3% | -11.5% | 22.1% | 46.9% | |
| Fyffes ($FFY) | 18.9% | 6.6% | 2.0% | 15.6% | |
| Cherkizovo Group OJSC ($CHE) | | 8.1% | 31.5% | 11.1% | 7.0% |
| Glanbia ($GLB) | | 7.7% | 6.6% | 9.3% | 2.7% |
| Kerry Group ($KYGA) | | -0.2% | -1.4% | 6.1% | 0.4% |
| |
|---|
| Median (20 companies) | 13.7% | 6.6% | -0.8% | -1.9% | 3.2% |
|---|
| Mhp Sa ($MHPC) | | 6.3% | -7.8% | -14.2% | -4.0% |
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 ($AGRO) | 28.8% | 22.1% | 33.6% | 42.1% | 30.4% |
| |
|---|
| Median (18 companies) | 28.8% | 22.1% | 26.8% | 23.4% | 26.6% |
|---|
| Mhp Sa ($MHPC) | 28.8% | 20.7% | 32.5% | 29.1% | 28.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Narborough Plantations ($NBP) | 58.1% | 42.5% | 39.6% | 37.4% | 40.8% |
| Ros Agro ($AGRO) | 20.6% | 15.5% | 28.1% | 34.6% | 23.7% |
| R.E.A.Hldgs ($RE.B) | 35.3% | 34.0% | 33.2% | 31.1% | |
| Kakuzi ($KAKU) | 28.0% | 14.9% | 11.8% | 29.4% | |
| Tongaat Hulett Ltd ($THL) | 18.7% | 18.2% | 19.0% | 16.5% | 14.5% |
| |
|---|
| Median (20 companies) | 9.9% | 8.7% | 8.7% | 8.8% | 11.2% |
|---|
| Mhp Sa ($MHPC) | 33.2% | 26.1% | 37.0% | 38.8% | 37.0% |
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 ($AGRO) | 20.0% | 10.5% | 7.3% | 15.3% | 19.7% |
| |
|---|
| Median (20 companies) | 6.1% | 4.3% | 4.8% | 5.1% | 3.7% |
|---|
| Mhp Sa ($MHPC) | 18.3% | 10.5% | 8.2% | 12.3% | 8.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ros Agro ($AGRO) | 7.2% | 4.0% | 23.8% | 23.2% | 11.1% |
| Origin Enterprises ($OGN) | 13.2% | 15.3% | 16.9% | 20.1% | 15.3% |
| Kakuzi ($KAKU) | 11.4% | 4.7% | 4.3% | 17.4% | |
| Kerry Group ($KYGA) | 10.6% | 5.2% | 16.6% | 15.8% | 13.1% |
| Fyffes ($FFY) | 16.4% | 17.2% | 18.5% | 14.7% | |
| |
|---|
| Median (20 companies) | 12.2% | 5.9% | 9.7% | 8.2% | 7.8% |
|---|
| Mhp Sa ($MHPC) | 18.4% | 11.2% | 17.6% | 17.6% | 16.1% |
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 | 3.8x |
| Zambeef Products ($ZAM) | 6.3x | 4.7x | 4.8x | 3.0x | 1.8x |
| |
|---|
| Median (17 companies) | 1.0x | 1.5x | 1.6x | 1.8x | 1.6x |
|---|
| Mhp Sa ($MHPC) | 2.2x | 2.9x | 2.2x | 2.7x | 2.6x |
