C&C Group reports 191% Net Income growth in 2018 while 8.1% Revenue decline
16 May 2018 • About C&C Group (
$CCR) • By InTwits
C&C Group reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 17.0% in FY2018, -6.7% in FY2017, 12.7% in FY2016, -4.9% in FY2015, 21.0% in FY2014
- C&C Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's in pair with industry average of 3.4%
- CAPEX is quite volatile: €14m in FY2018, €23m in FY2017, €10m in FY2016, €22m in FY2015, €39m in FY2014
- The company has business model with low profitability: ROIC is 8.7%
- It operates with high leverage: Net Debt/EBITDA is 2.5x while industry average is 1.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
C&C Group's Revenue decreased on 8.1%. Revenue decline was accelerating on average at -9.7 pp per annum in the last 5 years. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 23.8 pp from -6.7% to 17.0% in FY2018.
SG&A as a % of Revenue decreased slightly on 1.5 pp from 23.8% to 22.3% in FY2018.
Net Income margin jumped on 24.3 pp from -12.2% to 12.1% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 C&C Group had CAPEX/Revenue of 2.6%. CAPEX/Revenue decreased slightly on 0.65 pp from 3.2% in FY2015 to 2.6% in FY2018. Average CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at good ROE (12.4%) while ROIC is low (8.7%). ROIC jumped on 14.3 pp from -5.7% to 8.7% in FY2018. ROE surged on 24.3 pp from -11.9% to 12.4% in FY2018.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.5x and Debt / EBITDA is 4.1x. Net Debt / EBITDA surged2.5x from to 2.5x in FY2018. Debt increased on 6.9% while cash dropped on 22.4%.
The company has no short term refinancing risk: short term debt is zero.
Financial and operational results
FY ended 28 Feb 2018
C&C Group ($CCR) key annual financial indicators| mln. € | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 620.2 | 683.9 | 662.6 | 596.5 | 548.2 | -8.1% |
| SG&A | 100.9 | 104.9 | 108.3 | 142.1 | 122.2 | -14.0% |
| EBITDA | 130.0 | -33.5 | 84.2 | -40.1 | 93.4 | |
| Net Income | 83.3 | -81.0 | 47.4 | -72.9 | 66.3 | |
Balance Sheet
|
|---|
| Cash | 162.8 | 181.9 | 197.3 | 187.6 | 145.5 | -22.4% |
| Short Term Debt | 0.1 | 0.0 | 0.2 | 0.0 | 0.0 | |
| Long Term Debt | 307.9 | 339.7 | 361.1 | 358.6 | 383.5 | 6.9% |
Cash flow
|
|---|
| Capex | 38.5 | 21.9 | 9.7 | 22.7 | 14.0 | -38.3% |
Ratios
|
|---|
| Revenue growth | 30.0% | 10.3% | -3.1% | -10.0% | -8.1% | |
| EBITDA growth | -1.3% | -125.8% | -351.3% | -147.6% | -332.9% | |
|
|---|
| EBITDA Margin | 21.0% | -4.9% | 12.7% | -6.7% | 17.0% | 23.8% |
| SG&A, % of revenue | 16.3% | 15.3% | 16.3% | 23.8% | 22.3% | -1.5% |
| Net Income Margin | 13.4% | -11.8% | 7.2% | -12.2% | 12.1% | 24.3% |
| CAPEX, % of revenue | 6.2% | 3.2% | 1.5% | 3.8% | 2.6% | -1.3% |
|
|---|
| ROIC | 9.7% | -5.1% | 6.0% | -5.7% | 8.7% | 14.3% |
| ROE | 10.2% | -10.0% | 6.5% | -11.9% | 12.4% | 24.3% |
| Net Debt/EBITDA | 1.1x | | 1.9x | | 2.5x |
Peers in Beverages
Below we provide C&C Group benchmarking against other companies in Beverages 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Stock Spirits Group ($STCK) | -14.1% | -10.3% | -0.6% | 5.2% | |
| Coca-Cola Hbc Ag ($CCH) | -5.3% | -2.5% | -2.0% | 4.9% | |
| |
|---|
| Median (2 companies) | -9.7% | -6.4% | -1.3% | 5.0% | |
|---|
| C&C Group ($CCR) | | 10.3% | -3.1% | -10.0% | -8.1% |
Top companies by Gross margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Stock Spirits Group ($STCK) | 52.6% | 53.5% | 50.7% | 50.0% | |
| Coca-Cola Hbc Ag ($CCH) | 35.6% | 36.7% | 37.0% | 37.4% | |
| |
|---|
| Median (2 companies) | 44.1% | 45.1% | 43.8% | 43.7% | |
|---|
Top companies by EBITDA margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Stock Spirits Group ($STCK) | 22.1% | 20.1% | 19.7% | 20.5% | |
| Coca-Cola Hbc Ag ($CCH) | 10.7% | 11.5% | 13.1% | 13.7% | |
| |
|---|
| Median (2 companies) | 16.4% | 15.8% | 16.4% | 17.1% | |
|---|
| C&C Group ($CCR) | 21.0% | -4.9% | 12.7% | -6.7% | 17.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Coca-Cola Hbc Ag ($CCH) | 5.6% | 5.2% | 5.6% | 6.3% | |
| Stock Spirits Group ($STCK) | 2.4% | 2.8% | 2.6% | 1.4% | |
| |
|---|
| Median (2 companies) | 4.0% | 4.0% | 4.1% | 3.8% | |
|---|
| C&C Group ($CCR) | 6.2% | 3.2% | 1.5% | 3.8% | 2.6% |
Top companies by ROIC, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Coca-Cola Hbc Ag ($CCH) | 6.9% | 8.6% | 10.8% | 12.5% | |
| Stock Spirits Group ($STCK) | 10.3% | 7.9% | 7.6% | 8.7% | |
| |
|---|
| Median (2 companies) | 8.6% | 8.2% | 9.2% | 10.6% | |
|---|
| C&C Group ($CCR) | 9.7% | -5.1% | 6.0% | -5.7% | 8.7% |
Top companies by Net Debt / EBITDA
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Coca-Cola Hbc Ag ($CCH) | 2.1x | 1.7x | 1.3x | 1.0x | |
| Stock Spirits Group ($STCK) | 1.2x | 1.1x | 1.2x | 1.0x | |
| |
|---|
| Median (2 companies) | 1.6x | 1.4x | 1.2x | 1.0x | |
|---|
