Mcbride reports 6.6 pp EBITDA Margin decline from 6.6% to in 2020 in 2020

08 Sep 2020 • About Mcbride ($MCB) • By InTwits

Mcbride reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:

EBITDA Margin is declining: in FY2020 vs. 6.6% in FY2019 vs. 7.7% in FY2016
It operates with medium-size leverage: Net Debt/EBITDA is 1.4x while industry average is -0.6x

Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Mcbride's Revenue decreased on 2.1%.

Net Income margin showed almost no change in FY2020.

Management team

Chris Smith is a Mcbride's CEO. Chris Smith has spent 9 months with the company.

Financial and operational results

Mcbride ($MCB) key annual financial indicators

mln. £	2016	2017	2018	2019	2020	2020/2019
P&L
Revenue	680.9	632.9	689.8	721.3	706.2	-2.1%
Gross Profit	243.8	230.3	235.6	240.4
SG&A	210.9	190.0	203.8	213.8
EBITDA	52.4	60.9	52.5	47.8
Net Income	17.0	8.9	3.4	8.1	6.5	-19.8%
Balance Sheet
Cash	24.8	26.0	11.7	14.4
Short Term Debt	30.3	39.3	43.6	43.5
Long Term Debt	85.4	62.4	82.4	91.8
Cash flow
Capex	11.5	15.2	22.4	17.1
Ratios
Revenue growth	-3.3%	-7.0%	9.0%	4.6%	-2.1%
EBITDA growth	68.5%	16.2%	-13.8%	-9.0%

Gross Margin	35.8%	36.4%	34.2%	33.3%
EBITDA Margin	7.7%	9.6%	7.6%	6.6%
SG&A, % of revenue	31.0%	30.0%	29.5%	29.6%
Net Income Margin	2.5%	1.4%	0.5%	1.1%	0.9%	-0.2%
CAPEX, % of revenue	1.7%	2.4%	3.2%	2.4%

ROIC	19.1%	23.8%	18.4%	14.0%
ROE	27.1%	13.5%	5.2%	12.3%
Net Debt/EBITDA	1.7x	1.2x	2.2x	2.5x

Peers in Household Goods & Home Construction

Below we provide Mcbride benchmarking against other companies in Household Goods & Home Construction 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	FY2016	FY2017	FY2018	FY2019	FY2020
M J Gleeson ($GLE)	20.8%	12.9%	22.7%	27.0%	-
Redrow ($RDW)	20.2%	20.1%	15.7%	10.0%	-
Colefax Group ($CFX)	0.1%	4.7%	6.9%	0.4%	-
Barratt Developments ($BDEV)	-	9.8%	4.8%	-2.3%	-28.2%
Crest Nicholson Hldgs ($CRST)	23.9%	4.6%	7.5%	-3.1%	-
Median (5 companies)	6.8%	4.7%	7.2%	0.4%	-28.2%
Mcbride ($MCB)	-	-7.0%	9.0%	4.6%	-2.1%

Top companies by Gross margin, %


Top 5	FY2016	FY2017	FY2018	FY2019	FY2020
Colefax Group ($CFX)	56.3%	55.1%	53.7%	54.3%	-
M J Gleeson ($GLE)	33.5%	35.4%	33.2%	30.0%	-
Redrow ($RDW)	24.2%	24.4%	24.4%	23.9%	-
Barratt Developments ($BDEV)	18.9%	20.0%	20.7%	22.8%	18.0%
Crest Nicholson Hldgs ($CRST)	26.7%	26.4%	22.0%	16.9%	-
Median (5 companies)	26.3%	26.2%	27.7%	23.9%	18.0%
Mcbride ($MCB)	35.8%	36.4%	34.2%	33.3%	-

Top companies by EBITDA margin, %


Top 5	FY2016	FY2017	FY2018	FY2019	FY2020
Redrow ($RDW)	19.0%	19.5%	20.1%	19.6%	-
Barratt Developments ($BDEV)	15.9%	17.3%	17.8%	19.0%	15.0%
M J Gleeson ($GLE)	20.4%	21.1%	19.2%	16.8%	-
Crest Nicholson Hldgs ($CRST)	20.6%	20.4%	16.4%	10.8%	-
Colefax Group ($CFX)	9.4%	7.0%	8.7%	9.1%	-
Median (5 companies)	17.4%	17.6%	18.5%	16.8%	15.0%
Mcbride ($MCB)	7.7%	9.6%	7.6%	6.6%	-

Top companies by CAPEX/Revenue, %


Top 5	FY2016	FY2017	FY2018	FY2019	FY2020
Colefax Group ($CFX)	3.0%	5.1%	2.8%	2.4%	-
M J Gleeson ($GLE)	0.7%	0.7%	0.7%	0.7%	-
Crest Nicholson Hldgs ($CRST)	0.2%	0.2%	0.2%	0.3%	-
Redrow ($RDW)	0.4%	0.1%	0.1%	0.2%	-
Barratt Developments ($BDEV)	0.1%	0.1%	0.2%	0.2%	0.2%
Median (5 companies)	0.6%	0.7%	0.5%	0.3%	0.2%
Mcbride ($MCB)	1.7%	2.4%	3.2%	2.4%	-

Top companies by ROIC, %


Top 5	FY2016	FY2017	FY2018	FY2019	FY2020
Redrow ($RDW)	21.8%	23.4%	26.0%	25.4%	-
M J Gleeson ($GLE)	20.2%	20.9%	20.7%	20.7%	-
Colefax Group ($CFX)	20.2%	11.2%	17.6%	18.3%	-
Barratt Developments ($BDEV)	16.5%	18.4%	18.3%	17.3%	9.1%
Crest Nicholson Hldgs ($CRST)	23.5%	22.5%	18.0%	11.2%	-
Median (5 companies)	19.6%	15.6%	18.2%	18.3%	9.1%
Mcbride ($MCB)	19.1%	23.8%	18.4%	14.0%	-

Top companies by Net Debt / EBITDA


Top 5	FY2016	FY2017	FY2018	FY2019	FY2020
Redrow ($RDW)	0.5x	0.2x	-0.2x	-0.3x	-
Crest Nicholson Hldgs ($CRST)	-0.4x	-0.2x	-0.1x	-0.3x	-
M J Gleeson ($GLE)	-0.8x	-1.0x	-1.1x	-0.7x	-
Barratt Developments ($BDEV)	-0.9x	-0.9x	-0.9x	-0.8x	-0.5x
Colefax Group ($CFX)	-1.4x	-1.2x	-1.2x	-1.2x	-
Median (5 companies)	-0.6x	-0.8x	-1.0x	-0.7x	-0.5x
Mcbride ($MCB)	1.7x	1.2x	2.2x	2.5x	-

Mcbride stock price chart

Mcbride financials

mln.	FY2015	FY2016	FY2017

Revenue	704.2	680.9	632.9
EBITDA	31.100	52.400	60.900
Net income	-0.700	17.000	8.900
CAPEX	21.200	11.500	15.200
Debt	115.7	115.7	101.7
Cash	23.300	24.800	26.000

About Mcbride

McBride plc manufactures, distributes, and sells private label household and personal care products to retailers in Europe and internationally. The company offers various household products, such as laundry products, including laundry powders tablets, liquid gels, and laundry liquid sachets; dishwashing products comprising washing up liquids and machine dishwashing powders, tablets, and gels; household cleaners consisting of bathroom, kitchen, glass, ceramic hobs, antibacterial, and surface cleaners; toilet cleaners and descaling products; and air freshener products, such as time release sprays, gel air fresheners, plug-in fresheners, sprays, diffusers, and candles. It also provides personal care products, which include bath and shower products comprising bath foams, shower gels, mousses, and liquid soaps; skin care products, such as day and night creams, serums, lotions, and cleansers, as well as general body, hand and foot care, and self-tanning creams; and hair care products, including shampoos, conditioners, styling and styling waxes, styling and hair sprays, hair mousses, and oils. In addition, the company offers body care products, including roll-on deodorants, aerosol based anti-perspirant deodorants, and fragranced body sprays for men, women, and teens; men's grooming products, such as shaving gels and foams, skincare, body freshness, deodorants, and shower products; oral care products, such as toothpastes and mouthwash formulations; and baby care products. Further, it provides contract manufacturing services of household and personal care products to brand owners and contract customers. McBride plc was founded in 1860 and is headquartered in Manchester, the United Kingdom.