Avangardco Investments Public Ltd CAPEX dropped on 65.3% in 2016 and Revenue dropped on 18.3%
29 Mar 2017 • About Avangardco Investments Public Ltd (
$AVGR) • By InTwits
Avangardco Investments Public Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Avangardco Investments Public Ltd is a company in decline: 2016 revenue growth was -18.3%, 5 years revenue CAGR was -19.3%
- EBITDA Margin is quite volatile: 0.7% in 2016, -17.4% in 2015, 30.9% in 2014, 45.6% in 2013, 44.5% in 2012
- Avangardco Investments Public Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 24.1%. At the same time it's a lot of higher than industry average of 6.2%.
- CAPEX is quite volatile: 13.0 in 2016, 37.4 in 2015, 77.0 in 2014, 185 in 2013, 322 in 2012
- The company has unprofitable business model: ROIC is at -2.5%
- It operates with high leverage: Net Debt/EBITDA is 241.4x while industry average is 15.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Avangardco Investments Public Ltd ($AVGR) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 629.3 | 661.2 | 419.6 | 231.3 | 189.1 | -18.3% |
| Gross Profit | 232.3 | 231.5 | 105.6 | 22.1 | 13.2 | -40.4% |
| SG&A | | | | 18.0 | 16.4 | -8.5% |
| EBITDA | 279.8 | 301.2 | 129.5 | -40.3 | 1.4 | -103.4% |
| Net Income | 225.4 | 236.0 | -26.1 | -154.6 | -57.0 | -63.2% |
Balance Sheet
|
|---|
| Cash | 204.3 | 156.8 | 117.9 | 31.3 | 12.6 | -59.8% |
| Short Term Debt | 151.5 | 64.5 | 264.0 | 69.0 | 31.1 | -54.9% |
| Long Term Debt | 201.0 | 258.6 | 79.9 | 267.3 | 312.9 | 17.1% |
Cash flow
|
|---|
| Capex | 321.6 | 184.8 | 77.0 | 37.4 | 13.0 | -65.3% |
Ratios
|
|---|
| Revenue growth | 13.7% | 5.1% | -36.5% | -44.9% | -18.3% | |
| EBITDA growth | 13.8% | 7.7% | -57.0% | -131.1% | -103.4% | |
| Gross Margin | 36.9% | 35.0% | 25.2% | 9.6% | 7.0% | -2.6% |
| EBITDA Margin | 44.5% | 45.6% | 30.9% | -17.4% | 0.7% | 18.2% |
| Net Income Margin | 35.8% | 35.7% | -6.2% | -66.9% | -30.1% | 36.7% |
| SG&A, % of revenue | | | | 7.8% | 8.7% | 0.9% |
| CAPEX, % of revenue | 51.1% | 28.0% | 18.4% | 16.2% | 6.9% | -9.3% |
| ROIC | 19.1% | 16.8% | 7.8% | -7.3% | -2.5% | 4.8% |
| ROE | 21.7% | 18.6% | -2.6% | -36.8% | -32.6% | 4.2% |
| Net Debt/EBITDA | 0.5x | 0.6x | 1.7x | | 241.4x | 241.4x |
Revenue and profitability
The company's Revenue dropped on 18.3% in 2016. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 18.2 pp from -17.4% to 0.73% in 2016.
Gross Margin decreased on 2.6 pp from 9.6% to 7.0% in 2016. SG&A as a % of Revenue increased slightly on 0.93 pp from 7.8% to 8.7% in 2016.
Net Income marign surged on 36.7 pp from -66.9% to -30.1% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.9% in 2016. CAPEX/Revenue dropped on 21.1 pp from 28.0% in 2013 to 6.9% in 2016. For the last three years the average CAPEX/Revenue was 13.8%.Battling declining revenue the company made large investments to CAPEX (945% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-2.52%) and ROE (-32.60%). ROIC increased on 4.8 pp from -7.3% to -2.5% in 2016. ROE increased on 4.2 pp from -36.8% to -32.6% in 2016.
Leverage (Debt)
Debt level is 241.4x Net Debt / EBITDA and 250.6x Debt / EBITDA. Net Debt / EBITDA surged241.4x from to 241.4x in 2016. Debt increased on 2.3% in 2016 while cash dropped on 59.8% in 2016.
Appendix 1: Peers in Food Producers
Below we provide Avangardco Investments Public Ltd 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 ($KAKU) | | -11.5% | 22.1% | 46.9% | 6.8% |
| Fyffes ($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 ($KYGA) | | -0.2% | -1.4% | 6.1% | 0.4% |
| |
|---|
| Median (20 companies) | 18.9% | 6.6% | -0.8% | -1.9% | 3.2% |
|---|
| Avangardco Investments Public Ltd ($AVGR) | | 5.1% | -36.5% | -44.9% | -18.3% |
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 ($AGRO) | 28.8% | 22.1% | 33.6% | 42.1% | 30.4% |
| |
|---|
| Median (18 companies) | 28.8% | 22.0% | 32.5% | 24.6% | 27.0% |
|---|
| Avangardco Investments Public Ltd ($AVGR) | 36.9% | 35.0% | 25.2% | 9.6% | 7.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mhp Sa ($MHPC) | 33.2% | 26.1% | 37.0% | 38.8% | 37.0% |
| Narborough Plantations ($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 ($KAKU) | 28.0% | 14.9% | 11.8% | 29.4% | |
| |
|---|
| Median (20 companies) | 9.9% | 8.7% | 8.7% | 12.1% | 11.5% |
|---|
| Avangardco Investments Public Ltd ($AVGR) | 44.5% | 45.6% | 30.9% | -17.4% | 0.7% |
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% | |
| 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% |
| Asian Citrus Hldgs ($ACHL) | 19.3% | 28.6% | 17.7% | 14.3% | |
| |
|---|
| Median (20 companies) | 6.1% | 4.3% | 4.8% | 5.1% | 5.0% |
|---|
| Avangardco Investments Public Ltd ($AVGR) | 51.1% | 28.0% | 18.4% | 16.2% | 6.9% |
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% |
| Mhp Sa ($MHPC) | 18.4% | 11.2% | 17.6% | 17.6% | 16.1% |
| Kakuzi ($KAKU) | 11.4% | 4.7% | 4.3% | 17.4% | |
| Kerry Group ($KYGA) | 10.6% | 5.2% | 16.6% | 15.8% | 13.1% |
| |
|---|
| Median (20 companies) | 12.2% | 5.9% | 12.0% | 8.7% | 8.0% |
|---|
| Avangardco Investments Public Ltd ($AVGR) | 19.1% | 16.8% | 7.8% | -7.3% | -2.5% |
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 (18 companies) | 1.4x | 1.7x | 1.6x | 1.8x | 1.8x |
|---|
