Ergomed Net Income dropped on 69.1% in 2016

28 Mar 2017 • About Ergomed ($ERGO) • By InTwits

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

Ergomed ($ERGO) key annual financial indicators

mln. £	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	14.611	15.147	21.155	30.178	39.233	30.0%
Gross Profit	3.926	5.001	5.770	8.370		-100.0%
SG&A	3.417	3.234	3.677	5.186		-100.0%
EBITDA	0.539	1.824	1.876	3.098		-100.0%
Net Income	0.391	1.546	0.578	1.552	0.479	-69.1%
Balance Sheet
Cash	0.445	1.950	4.576	3.974		-100.0%
Short Term Debt	0.072	0.029	0.007	0.005		-100.0%
Long Term Debt	0.031	0.008	0.006	0.007		-100.0%
Cash flow
Capex	0.096	0.070	0.062	0.270		-100.0%
Ratios
Revenue growth	21.1%	3.7%	39.7%	42.7%	30.0%
EBITDA growth	-18.9%	238.4%	2.9%	65.1%
Gross Margin	26.9%	33.0%	27.3%	27.7%		-27.7%
EBITDA Margin	3.7%	12.0%	8.9%	10.3%	0.0%	-10.3%
Net Income Margin	2.7%	10.2%	2.7%	5.1%	1.2%	-3.9%
SG&A, % of revenue	23.4%	21.4%	17.4%	17.2%		-17.2%
CAPEX, % of revenue	0.7%	0.5%	0.3%	0.9%		-0.9%
ROIC	82.0%	148.0%	15.5%	14.6%		-14.6%
ROE	71.1%	136.8%	6.7%	9.6%		-9.6%
Net Debt/EBITDA	-0.6x	-1.0x	-2.4x	-1.3x		1.3x

Revenue and profitability

The company's Revenue jumped on 30.0% in FY2016.

Net Income marign decreased on 3.9 pp from 5.1% to 1.2% in FY2016.

Appendix 1: Peers in Pharmaceuticals & Biotechnology

Below we provide Ergomed benchmarking against other companies in Pharmaceuticals & Biotechnology 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
Cyprotex ($CRX)	5.3%	17.3%	18.5%	34.9%
Beximco Pharmaceuticals ($BXP)		12.9%	6.8%	15.7%	6.3%
Quantum Pharma ($QP.)		26.0%	10.8%	15.4%	13.4%
Pharmstandard OJSC ($PHST)	19.1%	12.4%	-27.7%	14.5%
Animalcare Group ($ANCR)		11.6%	6.3%	5.1%	8.6%
Median (11 companies)	8.2%	12.4%	6.3%	4.5%	7.6%
Ergomed ($ERGO)		3.7%	39.7%	42.7%	30.0%

Top companies by Gross margin, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Pfizer Inc ($PFZ)	82.0%	81.4%	80.7%	80.3%	76.7%
Cyprotex ($CRX)	81.9%	80.0%	75.0%	77.3%
Animalcare Group ($ANCR)	54.0%	56.0%	55.4%	55.9%	54.4%
Source Bioscience ($SBS)	45.1%	46.0%	48.6%	50.5%
Beximco Pharmaceuticals ($BXP)	47.3%	46.1%	45.5%	46.3%	46.5%
Median (11 companies)	45.1%	46.0%	45.5%	44.9%	46.8%
Ergomed ($ERGO)	26.9%	33.0%	27.3%	27.7%

Top companies by EBITDA margin, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Pfizer Inc ($PFZ)	41.9%	41.9%	37.9%	34.8%	33.6%
Pharmstandard OJSC ($PHST)	26.1%	30.3%	30.9%	29.0%
Beximco Pharmaceuticals ($BXP)	29.1%	26.9%	27.2%	26.6%	28.9%
Animalcare Group ($ANCR)	24.2%	25.2%	24.5%	25.4%	23.5%
Eastpharma Ltd ($EAST)	21.1%	15.6%	16.1%	23.3%	23.9%
Median (11 companies)	16.3%	15.6%	18.5%	20.5%	23.7%
Ergomed ($ERGO)	3.7%	12.0%	8.9%	10.3%

Top companies by CAPEX/Revenue, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Taihua ($TAIH)	0.9%	0.1%	1.6%	62.2%
Beximco Pharmaceuticals ($BXP)	11.1%	26.1%	24.8%	19.4%	13.5%
Eastpharma Ltd ($EAST)	11.9%	12.3%	7.1%	6.2%	6.7%
Cathay International Hldgs Ltd ($CTI)	16.7%	12.1%	4.0%	5.5%
Cyprotex ($CRX)	3.5%	12.0%	12.9%	5.3%
Median (11 companies)	3.5%	4.7%	4.0%	5.3%	3.2%
Ergomed ($ERGO)	0.7%	0.5%	0.3%	0.9%

Top companies by ROIC, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Pharmstandard OJSC ($PHST)	34.0%	42.6%	28.8%	23.9%
Quantum Pharma ($QP.)		8.9%	4.6%	17.8%	9.1%
Cyprotex ($CRX)	4.3%	8.4%	-9.7%	15.0%
Animalcare Group ($ANCR)	14.0%	15.4%	14.2%	14.8%	13.8%
Anpario ($ANP)	15.9%	14.7%	13.6%	13.8%	8.9%
Median (11 companies)	8.4%	8.9%	8.4%	9.6%	9.7%
Ergomed ($ERGO)	82.0%	148.0%	15.5%	14.6%

Top companies by Net Debt / EBITDA

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Cathay International Hldgs Ltd ($CTI)	15.0x	12.2x	6.3x	12.7x
Cyprotex ($CRX)	0.6x	-4.3x	20.0x	3.9x
Eastpharma Ltd ($EAST)	2.7x	3.8x	4.3x	2.7x	1.8x
Pfizer Inc ($PFZ)	1.2x	1.6x	1.8x	2.1x	2.2x
Beximco Pharmaceuticals ($BXP)	1.1x	1.5x	1.5x	1.4x	1.0x
Median (10 companies)	0.6x	1.5x	1.5x	1.1x	1.4x
Ergomed ($ERGO)	-0.6x	-1.0x	-2.4x	-1.3x

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