Magnit PJSC reports 12.5% revenue growth in 2016 and 1.3 pp EBITDA Margin decline from 10.9% to 9.6%
24 Mar 2017 • About Magnit PJSC (
$MGNT) • By InTwits
Magnit PJSC reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Magnit PJSC is a fast growth stock: 2016 revenue growth was 12.5%, 5 year revenue CAGR was 26.2% at 2016 ROIC 25.1%
- EBITDA Margin is relatively stable: 9.6% in 2016 vs. 10.9% in 2015 vs. 10.3% in 2012
- Magnit PJSC has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.4%. At the same time it's a lot of higher than industry average of 5.1%.
- CAPEX is quite volatile: 81,700 in 2016, 51,100 in 2015, 53,600 in 2014, 34,500 in 2013, 26,300 in 2012
- The company has highly profitable business model: ROIC is at 25.1%
- It operates with high leverage: Net Debt/EBITDA is 1.1x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Magnit PJSC ($MGNT) key annual financial indicators
| mln. RUB | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 448,234 | 579,994 | 767,556 | 955,100 | 1,074,812 | 12.5% |
| Gross Profit | 118,939 | 165,348 | 221,684 | 272,099 | 295,759 | 8.7% |
| SG&A | 72,829 | 102,005 | 135,111 | 168,616 | 192,996 | 14.5% |
| EBITDA | 46,231 | 63,575 | 86,867 | 103,978 | 103,507 | -0.5% |
| Net Income | 25,093 | 35,639 | 47,937 | 59,340 | 54,409 | -8.3% |
Balance Sheet
|
|---|
| Cash | 12,528 | 5,961 | 18,318 | 8,396 | 16,559 | 97.2% |
| Short Term Debt | 25,275 | 36,503 | 53,072 | 43,108 | 50,106 | 16.2% |
| Long Term Debt | 38,479 | 37,631 | 45,983 | 59,446 | 77,500 | 30.4% |
Cash flow
|
|---|
| Capex | 47,265 | 50,077 | 56,006 | 54,255 | 49,808 | -8.2% |
Ratios
|
|---|
| Revenue growth | 33.5% | 29.4% | 32.3% | 24.4% | 12.5% | |
| EBITDA growth | 75.5% | 37.5% | 36.6% | 19.7% | -0.5% | |
| Gross Margin | 26.5% | 28.5% | 28.9% | 28.5% | 27.5% | -1.0% |
| EBITDA Margin | 10.3% | 11.0% | 11.3% | 10.9% | 9.6% | -1.3% |
| Net Income Margin | 5.6% | 6.1% | 6.2% | 6.2% | 5.1% | -1.2% |
| SG&A, % of revenue | 16.2% | 17.6% | 17.6% | 17.7% | 18.0% | 0.3% |
| CAPEX, % of revenue | 10.5% | 8.6% | 7.3% | 5.7% | 4.6% | -1.0% |
| ROIC | 23.1% | 26.0% | 33.2% | 32.6% | 25.1% | -7.5% |
| ROE | 28.3% | 31.4% | 38.7% | 40.2% | 30.1% | -10.1% |
| Net Debt/EBITDA | 1.1x | 1.1x | 0.9x | 0.9x | 1.1x | 0.2x |
Revenue and profitability
Magnit PJSC's Revenue surged on 12.5% in 2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.0 pp from 8.6% to 9.6% in 2016.
Gross Margin decreased slightly on 0.97 pp from 28.5% to 27.5% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign decreased slightly on 1.2 pp from 6.2% to 5.1% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.6% in 2016. Magnit PJSC's CAPEX/Revenue decreased on 4.0 pp from 8.6% in 2013 to 4.6% in 2016. It's average CAPEX/Revenue for the last three years was 5.9%.
Return on investment
The company operates at high and attractive ROIC (25.06%) and ROE (30.12%). ROIC decreased on 7.5 pp from 32.6% to 25.1% in 2016. ROE dropped on 10.1 pp from 40.2% to 30.1% in 2016.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA surged on 0.2x from 0.9x to 1.1x in 2016. Debt surged on 24.4% in 2016 while cash jumped on 97.2% in 2016.
Appendix 1: Peers in Food & Drug Retailers
Below you can find Magnit PJSC benchmarking vs. other companies in Food & Drug Retailers 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 |
|---|
| Lenta Ltd ($LNTA) | | 31.3% | 34.5% | 30.3% | 21.2% |
| X5 Retail Group N.V ($89VS) | 8.0% | 9.0% | 18.5% | 27.6% | |
| Crawshaw Group ($CRAW) | | -0.6% | 11.9% | 17.1% | 50.5% |
| Total Produce ($TOT) | | 8.5% | 1.1% | 7.8% | 8.0% |
| O'Key Group Sa ($OKEY) | 26.0% | 18.9% | 9.0% | 6.9% | |
| |
|---|
| Median (8 companies) | 17.0% | 7.1% | 7.6% | 7.4% | 4.3% |
|---|
| Magnit PJSC ($MGNT) | | 29.4% | 32.3% | 24.4% | 12.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Snacktime ($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% |
| X5 Retail Group N.V ($89VS) | 23.6% | 24.4% | 24.5% | 24.5% | |
| O'Key Group Sa ($OKEY) | 23.5% | 23.9% | 24.5% | 23.6% | |
| |
|---|
| Median (8 companies) | 23.6% | 24.1% | 24.5% | 24.1% | 27.0% |
|---|
| Magnit PJSC ($MGNT) | 26.5% | 28.5% | 28.9% | 28.5% | 27.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jardine Matheson Hldgs ($J36) | 13.1% | 11.6% | 11.8% | 12.8% | 18.2% |
| Lenta Ltd ($LNTA) | 10.7% | 11.2% | 11.0% | 11.1% | 10.2% |
| 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% |
| O'Key Group Sa ($OKEY) | 8.1% | 7.3% | 7.3% | 6.1% | |
| |
|---|
| Median (8 companies) | 6.7% | 7.0% | 6.9% | 6.2% | 4.1% |
|---|
| Magnit PJSC ($MGNT) | 10.3% | 11.0% | 11.3% | 10.9% | 9.6% |
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% |
| O'Key Group Sa ($OKEY) | 7.1% | 8.7% | 10.6% | 5.1% | |
| Jardine Matheson Hldgs ($J36) | 4.9% | 4.4% | 3.5% | 3.6% | 3.5% |
| |
|---|
| Median (8 companies) | 4.7% | 4.1% | 3.4% | 4.4% | 3.7% |
|---|
| Magnit PJSC ($MGNT) | 10.5% | 8.6% | 7.3% | 5.7% | 4.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dairy Farm International Hldgs ($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% | |
| Total Produce ($TOT) | 9.0% | 11.9% | 10.3% | 9.5% | 9.2% |
| |
|---|
| Median (8 companies) | 8.5% | 12.4% | 12.6% | 10.0% | 9.5% |
|---|
| Magnit PJSC ($MGNT) | 23.1% | 26.0% | 33.2% | 32.6% | 25.1% |
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 ($J36) | 1.4x | 1.3x | 1.3x | 1.3x | 0.8x |
| Dairy Farm International Hldgs ($DFIB) | -0.8x | -0.9x | -0.7x | 0.7x | 1.0x |
| |
|---|
| Median (7 companies) | 1.2x | 1.3x | 1.7x | 1.3x | 0.8x |
|---|
| Magnit PJSC ($MGNT) | 1.1x | 1.1x | 0.9x | 0.9x | 1.1x |
