Crawshaw Group reports 0.75% revenue growth in FY2018 and 27.3 pp EBITDA Margin decline from -0.46% to -27.7%
25 Apr 2018 • About Crawshaw Group (
$CRAW) • By InTwits
Crawshaw Group reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -27.7%
- Crawshaw Group motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.0% while average EBITDA Margin was -5.3% for the sames years
- Crawshaw Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's in pair with industry average of 4.8%
- CAPEX is quite volatile: £1m in FY2018, £3m in FY2017, £2m in FY2016, £2m in FY2015, £0m in FY2014
- The company has unprofitable business model: ROIC is -91.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Crawshaw Group's Revenue increased slightly on 0.75%. During the last 5 years Revenue growth topped in FY2016 at 50.5% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 12.0 pp from 5.8% to 17.8% in FY2018. EBITDA Margin followed a declining trend in FY2014-FY2018.
Gross Margin decreased slightly on 1.5 pp from 43.5% to 42.0% in FY2018. During FY2014-FY2018 Gross Margin topped in FY2016 at 45.1% and was declining since that time. SG&A as a % of Revenue increased slightly on 1.9 pp from 46.8% to 48.7% in FY2018. SG&A as a % of Revenue followed a growing trend at 2.6 pp per annum in FY2014-FY2018.
Net Income margin dropped on 27.0 pp from -2.7% to -29.7% in FY2018. Net Income margin pursued a declining trend in FY2014-FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 the company had CAPEX/Revenue of 2.0%. The company showed decline in CAPEX/Revenue of 4.3 pp from 6.3% in FY2015 to 2.0% in FY2018. It's average level of CAPEX/Revenue for the last three years was 4.9%.
Return on investment
The company operates at negative ROIC (-91.6%) and ROE (-92.1%). ROIC dropped on 84.4 pp from -7.2% to -91.6% in FY2018. ROE dropped on 85.7 pp from -6.4% to -92.1% in FY2018. ROIC followed a declining trend in the last 5 years. ROE followed a declining trend in FY2014-FY2018.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and Debt / EBITDA. Debt dropped on 47.5% while cash surged on 118%.
Crawshaw Group has no short term refinancing risk: cash is higher than short term debt (20,326.1%).
Financial and operational results
FY ended 28 Jan 2018
Crawshaw Group ($CRAW) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 21.020 | 24.620 | 37.060 | 44.228 | 44.559 | 0.7% |
| Gross Profit | 9.202 | 10.921 | 16.704 | 19.245 | 18.734 | -2.7% |
| SG&A | 8.232 | 9.803 | 17.115 | 20.715 | 21.710 | 4.8% |
| EBITDA | 1.368 | 1.573 | 0.543 | -0.202 | -12.351 | |
| Net Income | 0.821 | 0.895 | -0.269 | -1.215 | -13.242 | |
Balance Sheet
|
|---|
| Cash | 1.428 | 9.090 | 4.880 | 2.147 | 4.675 | 117.7% |
| Short Term Debt | 0.180 | 0.000 | 0.038 | 0.064 | 0.023 | -64.1% |
| Long Term Debt | 0.270 | 0.000 | 0.035 | 0.058 | 0.041 | -29.3% |
Cash flow
|
|---|
| Capex | 0.247 | 1.559 | 2.265 | 2.947 | 0.905 | -69.3% |
Ratios
|
|---|
| Revenue growth | 11.9% | 17.1% | 50.5% | 19.3% | 0.7% | |
| EBITDA growth | 116.2% | 15.0% | -65.5% | -137.2% | 6,014.4% | |
|
|---|
| Gross Margin | 43.8% | 44.4% | 45.1% | 43.5% | 42.0% | -1.5% |
| EBITDA Margin | 6.5% | 6.4% | 1.5% | -0.5% | -27.7% | -27.3% |
| SG&A, % of revenue | 39.2% | 39.8% | 46.2% | 46.8% | 48.7% | 1.9% |
| Net Income Margin | 3.9% | 3.6% | -0.7% | -2.7% | -29.7% | -27.0% |
| CAPEX, % of revenue | 1.2% | 6.3% | 6.1% | 6.7% | 2.0% | -4.6% |
|
|---|
| ROIC | 8.6% | 7.1% | -1.9% | -7.2% | -91.6% | -84.4% |
| ROE | 7.9% | 5.8% | -1.4% | -6.4% | -92.1% | -85.7% |
| Net Debt/EBITDA | -0.7x | -5.8x | -8.8x | | |
Peers in Food & Drug Retailers
Below you can find Crawshaw Group 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| X5 Retail Group N.V ($89VS) | | 27.6% | 27.8% | 25.3% | |
| Lenta Ltd ($LNTA) | 34.5% | 30.3% | 21.2% | 19.2% | |
| Total Produce ($TOT) | 1.1% | 7.8% | 8.0% | 18.3% | |
| Ocado Group ($OCDO) | 19.8% | 16.7% | 14.8% | 14.4% | |
| Jardine Matheson Hldgs ($J36) | 1.2% | -7.3% | 0.1% | 6.5% | |
| |
|---|
| Median (8 companies) | 10.5% | 7.8% | 8.0% | 10.5% | |
|---|
| Crawshaw Group ($CRAW) | | 17.1% | 50.5% | 19.3% | 0.7% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ocado Group ($OCDO) | 33.0% | 33.9% | 34.2% | 34.0% | |
| Dairy Farm International Hldgs ($DFIB) | 29.9% | 29.5% | 30.2% | 30.4% | |
| Magnit PJSC ($MGNT) | 28.9% | 28.5% | 27.5% | 26.6% | |
| X5 Retail Group N.V ($89VS) | 24.5% | 24.5% | 24.2% | 23.9% | |
| Jardine Matheson Hldgs ($J36) | 23.4% | 23.3% | 23.8% | 23.8% | |
| |
|---|
| Median (8 companies) | 24.5% | 24.5% | 24.2% | 23.8% | |
|---|
| Crawshaw Group ($CRAW) | 43.8% | 44.4% | 45.1% | 43.5% | 42.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Jardine Matheson Hldgs ($J36) | 11.8% | 12.8% | 18.3% | 23.5% | |
| Lenta Ltd ($LNTA) | 11.0% | 11.1% | 10.2% | 9.7% | |
| X5 Retail Group N.V ($89VS) | 7.7% | 7.2% | 7.0% | 7.4% | |
| Magnit PJSC ($MGNT) | 11.3% | 10.9% | 9.6% | 7.4% | |
| Dairy Farm International Hldgs ($DFIB) | 6.6% | 5.8% | 6.0% | 5.2% | |
| |
|---|
| Median (8 companies) | 7.3% | 7.2% | 6.3% | 6.3% | |
|---|
| Crawshaw Group ($CRAW) | 6.5% | 6.4% | 1.5% | -0.5% | -27.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ocado Group ($OCDO) | 5.6% | 6.4% | 6.7% | 9.0% | |
| Lenta Ltd ($LNTA) | 17.9% | 12.3% | 13.8% | 7.5% | |
| Magnit PJSC ($MGNT) | 7.3% | 5.7% | 4.6% | 6.4% | |
| X5 Retail Group N.V ($89VS) | 4.5% | 6.4% | 6.6% | 6.1% | |
| Jardine Matheson Hldgs ($J36) | 3.5% | 3.6% | 3.5% | 3.9% | |
| |
|---|
| Median (8 companies) | 4.5% | 5.1% | 3.9% | 5.0% | |
|---|
| Crawshaw Group ($CRAW) | 1.2% | 6.3% | 6.1% | 6.7% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| X5 Retail Group N.V ($89VS) | 14.9% | 15.7% | 17.0% | 18.0% | |
| Lenta Ltd ($LNTA) | 24.5% | 20.3% | 16.0% | 14.4% | |
| Magnit PJSC ($MGNT) | 33.2% | 32.6% | 25.1% | 13.6% | |
| Dairy Farm International Hldgs ($DFIB) | 31.1% | 21.6% | 18.7% | 13.4% | |
| Total Produce ($TOT) | 10.3% | 9.5% | 9.2% | 12.6% | |
| |
|---|
| Median (8 companies) | 14.9% | 10.4% | 9.8% | 13.0% | |
|---|
| Crawshaw Group ($CRAW) | 8.6% | 7.1% | -1.9% | -7.2% | -91.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| O'Key Group Sa ($OKEY) | 2.4x | 2.6x | 3.1x | 3.2x | |
| Ocado Group ($OCDO) | 1.4x | 1.6x | 2.0x | 3.0x | |
| Lenta Ltd ($LNTA) | 2.8x | 1.9x | 2.8x | 2.6x | |
| X5 Retail Group N.V ($89VS) | 2.2x | 2.3x | 1.9x | 1.7x | |
| Magnit PJSC ($MGNT) | 0.9x | 0.9x | 1.1x | 1.3x | |
| |
|---|
| Median (8 companies) | 1.4x | 1.5x | 1.5x | 1.5x | |
|---|
