LSR Group OJSC EBITDA Margin dropped on 19.3 pp from 19.3% to in 2016

17 Mar 2017 • About LSR Group OJSC ($LSRG) • By InTwits

LSR Group OJSC reported FY2016 financial results today. Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

LSR Group OJSC ($LSRG) key annual financial indicators

mln. RUB	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	61,064	60,232	92,834	87,240	98,072	12.4%
Gross Profit	18,878	18,843	26,187	26,220		-100.0%
SG&A	9,133	9,913	11,346	12,039		-100.0%
EBITDA	12,338	11,735	21,282	16,840		-100.0%
Net Income	4,947	3,272	9,251	10,699	9,163	-14.4%
Balance Sheet
Cash	3,991	5,929	26,173	20,446		-100.0%
Short Term Debt	5,629	8,074	8,997	11,121		-100.0%
Long Term Debt	34,156	26,244	19,376	21,917		-100.0%
Cash flow
Capex	6,643	3,561	1,358	3,254		-100.0%
Ratios
Revenue growth	17.6%	-1.4%	54.1%	-6.0%	12.4%
EBITDA growth	19.9%	-4.9%	81.4%	-20.9%
Gross Margin	30.9%	31.3%	28.2%	30.1%		-30.1%
EBITDA Margin	20.2%	19.5%	22.9%	19.3%	0.0%	-19.3%
Net Income Margin	8.1%	5.4%	10.0%	12.3%	9.3%	-2.9%
SG&A, % of revenue	15.0%	16.5%	12.2%	13.8%		-13.8%
CAPEX, % of revenue	10.9%	5.9%	1.5%	3.7%		-3.7%
ROIC	10.2%	8.8%	20.1%	14.7%		-14.7%
ROE	9.0%	5.6%	15.9%	16.7%		-16.7%
Net Debt/EBITDA	2.9x	2.4x	0.1x	0.7x		-0.7x

Revenue and profitability

The company's Revenue jumped on 12.4% in FY2016.

Net Income marign decreased on 2.9 pp from 12.3% to 9.3% in FY2016.

Appendix 1: Peers in Construction & Materials

Below we provide LSR Group OJSC benchmarking against other companies in Construction & Materials 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
Kingspan Group ($KGP)		9.1%	6.4%	46.7%	12.0%
Accsys Technologies ($AXS)		25.5%	78.0%	37.5%	14.5%
Billington Hldgs ($BILN)	-34.0%	8.4%	14.5%	25.8%
Crh ($CRH)		-0.3%	4.9%	25.0%	14.7%
Clarke(T.) ($CTO)	5.5%	12.0%	-4.2%	16.6%
Median (25 companies)	0.0%	5.6%	8.8%	1.7%	7.7%
LSR Group OJSC ($LSRG)		-1.4%	54.1%	-6.0%	12.4%

Top companies by Gross margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Inch Kenneth Kajang Rubber ($IKK)	46.5%	24.5%	21.7%	51.7%
Swp Group ($SWP)	43.0%	48.1%	39.2%	49.7%
Heath(Samuel)& Sons ($HSM)	49.5%	47.3%	48.6%	47.6%	48.1%
James Halstead ($JHD)	41.2%	41.6%	41.0%	41.7%	42.4%
Michelmersh Brick Hldgs ($MBH)	35.3%	28.4%	31.1%	38.2%
Median (23 companies)	23.6%	24.2%	26.3%	29.1%	31.4%
LSR Group OJSC ($LSRG)	30.9%	31.3%	28.2%	30.1%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Lucky Cement Ltd ($LKCS)	31.5%	26.8%	24.4%	26.5%	30.4%
Steppe Cement ($STCM)	20.8%	23.2%	14.3%	24.7%
James Halstead ($JHD)	20.2%	19.8%	20.1%	20.9%	21.6%
Michelmersh Brick Hldgs ($MBH)	10.6%	7.9%	14.1%	20.3%
Asia Cement Corp ($ASCD)	13.5%	16.3%	18.3%	14.8%
Median (25 companies)	8.5%	7.3%	9.5%	9.5%	10.6%
LSR Group OJSC ($LSRG)	20.2%	19.5%	22.9%	19.3%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Inch Kenneth Kajang Rubber ($IKK)	74.2%	5.4%	12.8%	54.9%	754.9%
Lucky Cement Ltd ($LKCS)	3.2%	5.2%	6.9%	12.0%	8.9%
Billington Hldgs ($BILN)	1.0%	1.1%	2.9%	10.8%
Low & Bonar ($BD46)	3.5%	2.8%	4.6%	9.1%	4.7%
Superglass Hldgs ($SPGH)	12.9%	14.2%	3.4%	7.9%
Median (25 companies)	2.1%	2.4%	2.6%	2.2%	3.1%
LSR Group OJSC ($LSRG)	10.9%	5.9%	1.5%	3.7%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
James Halstead ($JHD)	49.3%	46.2%	46.7%	45.3%	47.1%
Alumasc Group ($ALU)	6.5%	17.5%	22.6%	36.0%	47.8%
Heath(Samuel)& Sons ($HSM)	9.7%	8.7%	19.7%	32.0%	89.2%
Aukett Swanke Group ($AUK)	2.7%	11.4%	27.3%	31.6%	9.6%
Lucky Cement Ltd ($LKCS)	23.8%	22.9%	20.3%	20.0%	20.8%
Median (25 companies)	4.0%	7.2%	5.4%	7.8%	9.4%
LSR Group OJSC ($LSRG)	10.2%	8.8%	20.1%	14.7%

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Mountfield Group ($MOGP)	26.3x	4.8x	52.0x	18.8x
Asia Cement Corp ($ASCD)	7.8x	6.9x	6.8x	8.6x
Crh ($CRH)	2.0x	3.6x	1.6x	3.1x	1.7x
Low & Bonar ($BD46)	2.7x	2.1x	2.1x	2.4x	2.1x
Saint-Gobain(Compagnie De) ($COD)	2.1x	2.0x	2.1x	1.4x	1.5x
Median (21 companies)	1.4x	0.6x	0.5x	-0.1x	-0.9x
LSR Group OJSC ($LSRG)	2.9x	2.4x	0.1x	0.7x

LSR Group OJSC stock price chart

LSR Group OJSC financials

mln.	FY2010	FY2011	FY2012

Revenue	49,951	51,931	61,063
EBITDA	8,651	10,291	12,338
Net income	1,770	2,467	4,947
CAPEX	4,490	4,872	6,643
Debt	31,889	38,916	39,785
Cash	1,330	5,183	3,991

About LSR Group OJSC

OJSC LSR Group, together with its subsidiaries, engages in the real estate development, construction, and building materials business in Russia. The company is involved in the development of residential real estate, gated communities, and commercial real estate properties in Saint Petersburg, Leningrad region, Moscow, and Yekaterinburg. It also produces reinforced concrete items, including hollow slabs, beams, 3-layer insulated panels, piles, road labs, airfield slabs, non-pressure pipes, well rings, vent units, lift shafts, and other items for residential, industrial, commercial, and infrastructure construction; ready-mix concrete and mortars; ceramic bricks, such as facing, fa?ade and paving clinker, regular, porous, and decorative bricks, as well as ceramic items; and aerated concrete items under the trade mark of AEROC. In addition, the company provides aggregates, including sand and crushed granites; and engages in the prefabricated construction activities. Further, it is involved in provision of lifting services through tower cranes and other hoisting equipment, including project management for crane rental projects; rental of cranes; transportation, installation, and commissioning of cranes and hoists to construction sites; and maintenance and repair services. The company was founded in 1993 and is headquartered in St. Petersburg, the Russian Federation. OJSC LSR Group operates as a subsidiary of Streetlink Ltd.

LSR Group OJSC EBITDA Margin dropped on 19.3 pp from 19.3% to in 2016

Revenue and profitability

Appendix 1: Peers in Construction & Materials

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