Young & Co'S Brewery reports 11.9% CAPEX decline in 2018 while 3.9% Revenue growth
24 May 2018 • About Young & Co'S Brewery (
$YNGN) • By InTwits
Young & Co'S Brewery reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 23.4% in FY2018 vs. 23.5% in FY2017 vs. 21.7% in FY2014
- Young & Co'S Brewery has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.1%. At the same time it's in pair with industry average of 2.4%
- CAPEX is quite volatile: $5m in FY2018, $7m in FY2017, $10m in FY2016, $2m in FY2015, $3m in FY2014
- The company has potentially unprofitable business model: ROIC is 6.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.2x while industry average is -2.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 3.9%. EBITDA Margin showed almost no change in FY2018. EBITDA Margin followed a growing trend at 0.39 pp per annum in the last 5 years.
Net Income margin showed almost no change in FY2018.
Investments (CAPEX, working capital and M&A)
Young & Co'S Brewery's CAPEX/Revenue was 10.9% in FY2018. Young & Co'S Brewery showed decline in CAPEX/Revenue of 3.4 pp from 14.3% in FY2015 to 10.9% in FY2018. It's average level of CAPEX/Revenue for the last three years was 13.5%. During the last 5 years CAPEX as a % of Revenue topped in FY2016 at 16.9% and was declining since that time.
Return on investment
The company operates at low ROIC (6.1%) and ROE (5.8%). ROIC showed almost no change in FY2018. ROE decreased slightly on 0.57 pp from 6.3% to 5.8% in FY2018.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.2x and Debt / EBITDA is 2.3x. Net Debt / EBITDA jumped on 0.1x from 2.0x to 2.2x in FY2018. Debt surged on 10.9% while cash increased on 9.1%.
Young & Co'S Brewery has short term refinancing risk: cash is only 72.0% of short term debt.
Financial and operational results
FY ended 02 Apr 2018
Young & Co'S Brewery ($YNGN) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 210.8 | 227.0 | 245.9 | 268.9 | 279.3 | 3.9% |
| EBITDA | 45.8 | 52.0 | 55.6 | 63.1 | 65.3 | 3.5% |
| Net Income | 22.1 | 26.7 | 26.6 | 30.0 | 30.1 | 0.3% |
Balance Sheet
|
|---|
| Cash | 2.4 | 0.2 | 13.2 | 6.6 | 7.2 | 9.1% |
| Short Term Debt | 0.0 | 5.0 | 0.0 | 28.5 | 10.0 | -64.9% |
| Long Term Debt | 114.4 | 124.2 | 143.4 | 104.7 | 137.7 | 31.5% |
Cash flow
|
|---|
| Capex | 22.8 | 32.4 | 41.6 | 34.5 | 30.4 | -11.9% |
Ratios
|
|---|
| Revenue growth | 8.8% | 7.7% | 8.3% | 9.4% | 3.9% | |
| EBITDA growth | 8.6% | 13.6% | 6.9% | 13.5% | 3.5% | |
|
|---|
| EBITDA Margin | 21.7% | 22.9% | 22.6% | 23.5% | 23.4% | -0.1% |
| Net Income Margin | 10.5% | 11.8% | 10.8% | 11.2% | 10.8% | -0.4% |
| CAPEX, % of revenue | 10.8% | 14.3% | 16.9% | 12.8% | 10.9% | -1.9% |
|
|---|
| ROIC | 6.3% | 6.6% | 6.2% | 6.5% | 6.1% | -0.4% |
| ROE | 6.2% | 6.8% | 6.2% | 6.3% | 5.8% | -0.6% |
| Net Debt/EBITDA | 2.4x | 2.5x | 2.3x | 2.0x | 2.2x | 0.1x |
Peers in Travel & Leisure
Below we provide Young & Co'S Brewery benchmarking against other companies in Travel & Leisure 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Nektan ($NKTN) | 75.8% | -71.7% | 995.3% | 129.1% | |
| Celtic ($CCP) | -14.6% | -21.1% | 1.8% | 74.3% | |
| Webis Holdings ($WEB) | -55.0% | 29.7% | 45.3% | 65.8% | |
| Easyhotel ($EZH) | 34.1% | 56.4% | 8.7% | 39.7% | |
| Eclectic Bar Grp ($BAR) | 10.5% | -1.9% | 1.4% | 38.6% | |
| |
|---|
| Median (23 companies) | 2.3% | 7.0% | 8.7% | 7.9% | 9.6% |
|---|
| Young & Co'S Brewery ($YNGN) | | 7.7% | 8.3% | 9.4% | 3.9% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intercontinental Hotels Group ($IHG) | 60.1% | 64.5% | 86.0% | 86.0% | |
| Eclectic Bar Grp ($BAR) | 79.0% | 79.4% | 80.7% | 82.3% | |
| Paddy Power ($PAP) | 81.0% | 74.7% | 76.9% | 76.8% | |
| Nektan ($NKTN) | 57.6% | 42.6% | 67.9% | 64.1% | |
| Dalata Hotel Group ($DAL) | 62.8% | 61.5% | 62.2% | 63.2% | |
| |
|---|
| Median (16 companies) | 48.1% | 40.4% | 42.7% | 38.1% | 12.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Irish Continental Group ($ICGC) | 27.3% | 23.6% | 25.7% | 32.8% | |
| Ryanair Hldgs ($RYA) | 20.1% | 25.1% | 28.9% | 30.6% | 31.2% |
| Dalata Hotel Group ($DAL) | 7.7% | 20.8% | 24.5% | 29.5% | |
| Heavitree Brewery ($HVT) | 22.7% | 23.7% | 25.0% | 27.8% | |
| Paddy Power ($PAP) | 29.8% | 20.4% | 17.0% | 26.7% | |
| |
|---|
| Median (23 companies) | 12.3% | 12.5% | 15.9% | 17.2% | 16.3% |
|---|
| Young & Co'S Brewery ($YNGN) | 21.7% | 22.9% | 22.6% | 23.5% | 23.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Easyhotel ($EZH) | 209.8% | 46.8% | 153.2% | 269.8% | |
| Dalata Hotel Group ($DAL) | 26.7% | 12.7% | 37.4% | 39.0% | |
| Everyman Media Group ($EMAN) | 25.9% | 56.4% | 64.2% | 38.4% | |
| Ryanair Hldgs ($RYA) | 10.0% | 13.9% | 18.6% | 21.8% | 20.6% |
| Marston'S ($MARS) | 17.5% | 16.2% | 15.3% | 19.4% | 14.3% |
| |
|---|
| Median (23 companies) | 5.1% | 5.7% | 8.1% | 5.4% | 13.9% |
|---|
| Young & Co'S Brewery ($YNGN) | 10.8% | 14.3% | 16.9% | 12.8% | 10.9% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intercontinental Hotels Group ($IHG) | 56.3% | 96.6% | 51.2% | 92.2% | |
| Irish Continental Group ($ICGC) | 40.0% | 33.9% | 30.1% | 35.4% | |
| Air Partner ($AIP) | 21.2% | 20.0% | 20.4% | 24.6% | |
| Ryanair Hldgs ($RYA) | 9.5% | 13.3% | 17.2% | 17.7% | 18.4% |
| Hanatour Service Inc ($TOUR) | 19.6% | 19.4% | 8.6% | 15.7% | |
| |
|---|
| Median (24 companies) | 4.8% | 5.9% | 5.4% | 8.5% | 8.1% |
|---|
| Young & Co'S Brewery ($YNGN) | 6.3% | 6.6% | 6.2% | 6.5% | 6.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Marston'S ($MARS) | 14.0x | 8.2x | 6.2x | 6.9x | 8.7x |
| Rotala ($ROL) | 2.8x | 3.6x | 3.6x | 3.9x | |
| Heavitree Brewery ($HVT) | 2.9x | 4.6x | 4.1x | 3.7x | |
| Fuller Smith & Turner ($BA80) | 2.7x | 2.8x | 3.2x | 3.1x | 3.0x |
| Mandarin Oriental International ($MDOB) | 2.5x | 0.8x | 2.3x | 2.6x | |
| |
|---|
| Median (22 companies) | 1.1x | 0.8x | 1.9x | 1.7x | 2.7x |
|---|
| Young & Co'S Brewery ($YNGN) | 2.4x | 2.5x | 2.3x | 2.0x | 2.2x |
