Lotte Shopping Co Ltd EBITDA Margin decreased on 7.5 pp from 7.5% to in 2019
13 Feb 2020 • About Lotte Shopping Co Ltd (
$LOTS) • By InTwits
Lotte Shopping Co Ltd reported FY2019 financial results today. Here are the key drivers of the company's long term financial model: It operates with high leverage: Net Debt/EBITDA is 3.8x while industry average is 1.8x.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased slightly on 1.1%. During the last 5 years Revenue growth bottomed in FY2017 at -24.6% and was accelerating since that time.
Gross Margin showed almost no change in FY2019. Gross Margin grew at 3.3 pp per annum in FY2015-FY2019.
Net Income margin decreased on 2.2 pp from -3.1% to -5.2% in FY2019. During FY2015-FY2019 Net Income margin topped in FY2016 at 0.70% and was declining since that time.
Financial and operational results
FY ended 30 Nov -0001
Lotte Shopping Co Ltd ($LOTS) key annual financial indicators| mln. KRW | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 29,127,655 | 24,114,329 | 18,179,871 | 17,820,781 | 17,632,841 | -1.1% |
| Gross Profit | 8,910,511 | 7,871,620 | 7,636,213 | 7,507,670 | 7,447,841 | -0.8% |
| SG&A | 7,107,426 | 6,353,787 | 6,356,531 | 6,245,286 | | |
| EBITDA | 1,839,904 | 1,724,551 | 1,423,054 | 1,333,923 | | |
| Net Income | -383,067 | 168,195 | -136,395 | -544,874 | -924,463 | |
Balance Sheet
|
|---|
| Cash | 1,751,268 | 2,269,177 | 2,626,244 | 1,818,473 | | |
| Short Term Debt | 4,278,421 | 5,084,334 | 3,080,435 | 1,980,853 | | |
| Long Term Debt | 9,849,308 | 9,444,162 | 4,597,334 | 5,814,745 | | |
Cash flow
|
|---|
| Capex | 1,094,939 | 1,206,957 | 883,863 | 597,125 | | |
Ratios
|
|---|
| Revenue growth | 3.7% | -17.2% | -24.6% | -2.0% | -1.1% | |
| EBITDA growth | -11.9% | -6.3% | -17.5% | -6.3% | | |
|
|---|
| Gross Margin | 30.6% | 32.6% | 42.0% | 42.1% | 42.2% | 0.1% |
| EBITDA Margin | 6.3% | 7.2% | 7.8% | 7.5% | |
| SG&A, % of revenue | 24.4% | 26.3% | 35.0% | 35.0% | | |
| Net Income Margin | -1.3% | 0.7% | -0.8% | -3.1% | -5.2% | -2.2% |
| CAPEX, % of revenue | 3.8% | 5.0% | 4.9% | 3.4% | | |
|
|---|
| ROIC | 2.6% | 2.3% | 1.9% | 2.7% | | |
| ROE | -2.4% | 1.0% | -1.0% | -4.6% | | |
| Net Debt/EBITDA | 6.7x | 7.1x | 3.5x | 4.5x | |
Peers in General Retailers
Below we provide Lotte Shopping Co Ltd benchmarking against other companies in General Retailers 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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| AO World ($AO.) | 23.8% | 25.7% | 17.0% | 13.6% | |
| Mysale Group ($MYSL) | | 7.0% | 6.4% | 8.9% | -28.6% |
| Aa ($AA.) | 1.0% | -5.0% | -0.2% | 2.9% | |
| United Carpets Group ($UCG) | -4.4% | 6.1% | -0.8% | 2.5% | |
| Shoe Zone ($SHOE) | | -4.2% | -1.3% | 1.8% | 0.9% |
| |
|---|
| Median (9 companies) | 7.3% | 6.1% | -0.8% | 1.8% | -13.9% |
|---|
| Lotte Shopping Co Ltd ($LOTS) | | -17.2% | -24.6% | -2.0% | -1.1% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Aa ($AA.) | 64.8% | 64.0% | 63.5% | 62.5% | |
| United Carpets Group ($UCG) | 64.3% | 63.8% | 61.2% | 61.5% | |
| French Connection Group ($FCCN) | 46.7% | 46.3% | 45.8% | 45.2% | |
| Stanley Gibbons Group ($SGI) | 51.5% | 40.3% | 31.6% | 40.0% | |
| Signet Jewelers Ltd ($SIG) | 36.2% | 37.3% | 36.8% | 35.0% | |
| |
|---|
| Median (9 companies) | 36.2% | 37.3% | 36.8% | 35.0% | 12.2% |
|---|
| Lotte Shopping Co Ltd ($LOTS) | 30.6% | 32.6% | 42.0% | 42.1% | 42.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Aa ($AA.) | 37.9% | 37.4% | 37.6% | 39.4% | |
| Signet Jewelers Ltd ($SIG) | 12.7% | 13.4% | 14.9% | 12.5% | |
| Shoe Zone ($SHOE) | 8.4% | 8.5% | 8.1% | 9.0% | 6.2% |
| United Carpets Group ($UCG) | 6.6% | 7.9% | 8.2% | 8.1% | |
| Mysale Group ($MYSL) | -4.7% | 1.8% | 2.0% | 1.8% | -24.3% |
| |
|---|
| Median (9 companies) | 8.4% | 1.8% | 1.9% | 1.8% | -9.0% |
|---|
| Lotte Shopping Co Ltd ($LOTS) | 6.3% | 7.2% | 7.8% | 7.5% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Aa ($AA.) | 3.8% | 8.0% | 7.6% | 6.6% | |
| Signet Jewelers Ltd ($SIG) | 3.8% | 3.5% | 4.3% | 3.8% | |
| Shoe Zone ($SHOE) | 1.1% | 2.0% | 3.3% | 3.2% | 4.5% |
| United Carpets Group ($UCG) | 2.8% | 5.7% | 2.1% | 2.9% | |
| Caffyns ($78GL) | 1.4% | 1.6% | 2.2% | 2.6% | |
| |
|---|
| Median (9 companies) | 1.9% | 1.6% | 2.2% | 2.6% | 2.3% |
|---|
| Lotte Shopping Co Ltd ($LOTS) | 3.8% | 5.0% | 4.9% | 3.4% | |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Aa ($AA.) | 34.9% | 32.0% | 30.8% | 32.3% | |
| Shoe Zone ($SHOE) | 30.0% | 30.6% | 30.7% | 31.7% | 19.6% |
| United Carpets Group ($UCG) | 36.7% | 37.1% | 33.7% | 29.9% | |
| Signet Jewelers Ltd ($SIG) | 15.5% | 15.2% | 16.0% | 13.0% | |
| Caffyns ($78GL) | 37.3% | 10.4% | 7.1% | 5.5% | |
| |
|---|
| Median (11 companies) | 15.5% | 5.1% | -0.0% | 5.5% | -0.0% |
|---|
| Lotte Shopping Co Ltd ($LOTS) | 2.6% | 2.3% | 1.9% | 2.7% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Aa ($AA.) | 7.9x | 8.0x | 7.6x | 7.0x | |
| Caffyns ($78GL) | 0.7x | 2.2x | 2.2x | 4.0x | |
| Mysale Group ($MYSL) | | -6.0x | -1.7x | 1.2x | |
| Signet Jewelers Ltd ($SIG) | 1.7x | 1.4x | 1.4x | 0.6x | |
| Shoe Zone ($SHOE) | -1.0x | -1.1x | -0.9x | -1.1x | -1.1x |
| |
|---|
| Median (6 companies) | -0.8x | -0.9x | 0.2x | 0.9x | -1.1x |
|---|
| Lotte Shopping Co Ltd ($LOTS) | 6.7x | 7.1x | 3.5x | 4.5x | |
