Barry Callebaut Group - Half-Year Results Fiscal Year 2017/18 - Media/Analyst...Barry Callebaut
Antoine de Saint-Affrique, CEO of the Barry Callebaut Group, said: “We had a very strong performance in the first six months of the current fiscal year, which was supported by all product groups and regions, as well as our key growth drivers. This resulted in the continued improvement of our profitability, driven by a favorable mix, operational leverage and a more supportive market.”
On November 8, 2017, the Barry Callebaut Group published its full-year result for the fiscal year 2016/17.
Antoine de Saint-Affrique, CEO of the Barry Callebaut Group, said: “I am delighted to announce a strong set of results. We saw a good performance across all our Regions and Product Groups at the top and bottom-line level. We keep delivering on our ‘smart growth’ agenda, which is reflected in the improvement of all our Group key financial metrics.”
Looking ahead, he added: “We will continue to deliver on our ‘smart growth’ strategy. A more supportive cocoa products market and slightly improving global demand for chocolate, together with the consistent execution of our strategy, give us the confidence to extend our mid-term guidance to fiscal year 2018/19: We are expecting 4-6% volume growth and EBIT above volume growth in local currencies on average for the 4-year period 2015/16 to 2018/19, barring any major unforeseen events.”
Read the full details on our Annual Report microsite: www.annual-report.barry-callebaut.com.
Disclaimer
This report is prepared as a requirement for final test of Certified Securities Analyst (CSA) Batch X. Although the contents of this document may represent personal opinion, deriving its judgement from materials and sources believed to be reliable, I cannot guarantee its accuracy and completeness.
Barry Callebaut Group - Half-Year Results Fiscal Year 2017/18 - Media/Analyst...Barry Callebaut
Antoine de Saint-Affrique, CEO of the Barry Callebaut Group, said: “We had a very strong performance in the first six months of the current fiscal year, which was supported by all product groups and regions, as well as our key growth drivers. This resulted in the continued improvement of our profitability, driven by a favorable mix, operational leverage and a more supportive market.”
On November 8, 2017, the Barry Callebaut Group published its full-year result for the fiscal year 2016/17.
Antoine de Saint-Affrique, CEO of the Barry Callebaut Group, said: “I am delighted to announce a strong set of results. We saw a good performance across all our Regions and Product Groups at the top and bottom-line level. We keep delivering on our ‘smart growth’ agenda, which is reflected in the improvement of all our Group key financial metrics.”
Looking ahead, he added: “We will continue to deliver on our ‘smart growth’ strategy. A more supportive cocoa products market and slightly improving global demand for chocolate, together with the consistent execution of our strategy, give us the confidence to extend our mid-term guidance to fiscal year 2018/19: We are expecting 4-6% volume growth and EBIT above volume growth in local currencies on average for the 4-year period 2015/16 to 2018/19, barring any major unforeseen events.”
Read the full details on our Annual Report microsite: www.annual-report.barry-callebaut.com.
Disclaimer
This report is prepared as a requirement for final test of Certified Securities Analyst (CSA) Batch X. Although the contents of this document may represent personal opinion, deriving its judgement from materials and sources believed to be reliable, I cannot guarantee its accuracy and completeness.
EY Analyst themes of quarterly oil & gas earnings: 3Q18EY
Oil & gas companies are reporting stronger cash flows and improved bottom lines. Analysts are focused on how that cash will be put to work. Do they return cash to shareholders or do they expand portfolios, possibly taking advantage of stronger market indicators? Macro factors and timing are likely to play a greater role as markets reset.
Since the start of 2008 Leading Edge has been running our 'State of the Industry Barometer' on a quarterly basis to find out how construction businesses are dealing with the market conditions. The survey is run in association with the Chartered Institute of Marketing's Construction Industry Group and Construction News.
ITC Limited, a multi-business conglomerate, has diversified presence in FMCG, Hotels, Paperboards and Packaging, Agri Business and Information Technology.ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal. Its diversified business includes five segments: Fast Moving Consumer Goods (FMCG), Hotels, Paperboards, Paper & Packaging and Agri Business. In 2012-13, ITC's annual turnover was over US$ 7 billion and at the end of the same year, its market capitalisation was US$ 45 billion. It employs over 25,000 people at more than 60 locations across India and is part of Forbes 2000 list.
EY Analyst themes of quarterly oil & gas earnings: 3Q18EY
Oil & gas companies are reporting stronger cash flows and improved bottom lines. Analysts are focused on how that cash will be put to work. Do they return cash to shareholders or do they expand portfolios, possibly taking advantage of stronger market indicators? Macro factors and timing are likely to play a greater role as markets reset.
Since the start of 2008 Leading Edge has been running our 'State of the Industry Barometer' on a quarterly basis to find out how construction businesses are dealing with the market conditions. The survey is run in association with the Chartered Institute of Marketing's Construction Industry Group and Construction News.
ITC Limited, a multi-business conglomerate, has diversified presence in FMCG, Hotels, Paperboards and Packaging, Agri Business and Information Technology.ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal. Its diversified business includes five segments: Fast Moving Consumer Goods (FMCG), Hotels, Paperboards, Paper & Packaging and Agri Business. In 2012-13, ITC's annual turnover was over US$ 7 billion and at the end of the same year, its market capitalisation was US$ 45 billion. It employs over 25,000 people at more than 60 locations across India and is part of Forbes 2000 list.
DB Corp’s 1QFY15 proforma PAT grew 4% YoY to INR791m vs our estimate of INR771m. While print ad revenue was 4% below estimate, EBITDA/PAT were 3-4% above estimate led by lower RM cost and other expenses.; buy.
Dabur’s (DABUR) 3QFY15 results were mixed, with consolidated sales growth of 9.2% YoY to INR20.7b (est. INR21.7b) and underlying domestic volume growth of 7.4% (est. 9%). EBITDA posted healthy 18.4% growth YoY to INR3.5b (INR3.5b), while recurring PAT grew 16.2% YoY to INR2.8b (est. INR2.8b).
JAGP’s 1QFY15 EBITDA grew 5% YoY and 36% QoQ to INR1.07b (v/s est of INR1.05b), supported by opex control even as revenue growth was muted. PAT (adjusted for exceptional items) declined 5% YoY but grew 81% QoQ to INR551m.
ttk prestige
Market Share: Prestige is India’s brand leader in the kitchenware and appliances categories and commands a ~37% market share in pressure cooker category, 31% market share in the cookware category and ~10% market share in the appliances category.
Hindustan Media Q1FY15: Strong advertising as well as circulation growth, BuyIndiaNotes.com
During the quarter, the company's revenue grew 16.5% YoY to INR2.1b (est INR2.02b). Advertising revenue grew 17% YoY to INR1.56b (est INR1.5b) largely led by yield improvement. Circulation revenue grew 17% YoY to INR493m (est INR458m). Buy
Dabur Q4FY14 results in line with expectations by Motilal OswalIndiaNotes.com
Dabur’s 4QFY14 results were in-line with expectation on the back of continued robust volume growth of 9.2% in domestic FMCG business and 9.4% in the consolidated entity (est. 10%). Consolidated net sales grew 15.5% to Rs17.7b (est. Rs17.9b).
Jagran Prakashan Q2FY15: Buy for a target of Rs165IndiaNotes.com
JAGP’s 2QFY15 EBITDA grew 16% YoY to INR1.06b (vs est of INR1.04b), supported by high single-digit growth in print advertising/circulation revenue and lower ‘other expenses’.
MindTree: Rupee appreciation drags revenue growth during Q1FY15IndiaNotes.com
Onsite pricing was up 2.7%, while offshore pricing declined by 0.5%. In INR terms revenues grew at a slower rate by 2.4% QoQ impacted by rupee appreciation during the quarter. EBITDA grew by 41.5% YoY, but fell by 4.9%.
Right Horizons market outlook for 2016 - stay invested
Navneet Valuation Report_updated
1. Navneet Education Ltd
Even if the world is shifting to the web-world but still paper industry has its own significance. Thus the
outlook is quite strong for market leader companies like Navneet Education Ltd. We had conducted EIC
Analysis to figure out whether Navneet Education Ltd is a best buy or not at current market price.
ECONOMY Analysis
With revival in economy at large the paper consumption is expected to increase as the GDP
increases.
Domestic demand for paper will increase to 10 million tonnes by 2015 and 30 million tonnes by
2016.
The growth in paper industry has mirrored the growth in GDP and has grown on an average 6-7%
over last few years.
Import rose from 2 thousand to 10 thousand tones
Paper industry is at 35 in the high priority list
INDUSTRY Analysis
Presently per capita consumption of paper in India is lowest in the world at 5kg, whereas it’s as high
as 337 in North America 110 in Europe 30 in china.
Indian paper industry accounts for about 1.6% of the world production of paper and paper board
according to IPM (Indian Paper Manufactures Associations)
The CAGR of the paper production is 8.4% and CAGR consumption is 9%
Indian handmade paper industry is vast industry comprising more than 157 handmade paper
producing division all over India, these 157 paper functional together manufactures worth 22 Cr
and provides employment to ten thousand people.
COMPANY Analysis
11-09-2012 11-03-2013 11-09-2013 11-03-2014 11-09-2014
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Prices
Date
Navneet
CNX Midcap
Nifty
Financials FY 13 FY 14 FY 15E FY 16E
Sales (in
lacs)
82207 90019 99646 110463
EBITDA 19221 20800 19304 24409
EBIT 16876 18220 16473 21270
Net profit 10860 11524 10321 13350
EPS 4.48 4.83 4.33 5.60
DPS 1.80 2.00 1.79 2.32
2. The share prices of Navneet mirrors the benchmark CNX Nifty and CNX midcap. With the present
conducive changes in government policies, the economy is poised to move northwards, so is
Navneet.
During FY10-14, the revenues have grown at a CAGR of 13.50% to 882.1crore
The publication segment has grown on the back of syllabus changes while the stationery segment
continues to grow on the back of healthy exports
The company is also exploring other avenues for growth. It has completed developing content for
Standards 1-7 for the CBSE Board and has also started marketing the same in its key states –
Maharashtra and Gujarat. Thereby, expect revenues to grow at a CAGR of 15.28% to touch 1,08,220
crore by FY16E.
The publication segment has grown at a CAGR of 19.33% during FY10-14.
A series of syllabus changes has aided this growth (Considering that there is visibility for syllabus
changes in both Maharashtra and Gujarat over the next two academic years and that the common
curriculum would aid in boosting revenues, )
Company is expecting the publication segment to grow at a CAGR of 19.33% to 48704 Cr by FY16E
The stationery segment has recorded revenue growth of 19.5%, albeit on a small base, during FY10-
14. The company supplies its stationery products to global retail giants like Walmart, Target, Tesco,
etc. We expect stationery segment revenues to grow at 8.6% (FY14-16E) to 494.7 Cr.
Valuation
In the publication and e-learning business, content is king. Navneet
has over five decades of experience in developing content. It has an
asset base of over 185 authors that create content and update the
same timely. Even as an established player in this business it takes
almost two years for Navneet to enter newer markets and even
longer for it to set up, create content and build distribution channels.
Navneet has a long standing relationship with state boards and also
schools. This is very important in this business as the state boards
recommend which workbooks, guides, etc. should be used. Navneet
also has a strong distribution channel, which enables easy distribution
and supply of its products.
We continue to believe in the company and like its strong
fundamentals. The company’s efforts to boost sales are bearing fruit and they shall also aid growth, going
forward. However, the growth potential of the company has been discounted in the price. We, therefore
maintain our target price of ₹119.
We maintain a BUY rating on the stock.
Key Data
CMP 100
Target price 119
(19% upside)
52 week
high/low 107.95/52.65
Market cap
229997
EV (in crore)
299042
Recommendation BUY
VALUATION
Summary
FY 13 FY 14 FY 15E FY 16E
P/E 13.65 19.97 22.28 17.23
EV/Share 67.8 106.0 104.3 107.6
EV to EBITDA 8.41 12.14 12.87 10.50
Price to book 3.47 4.81 4.27 3.72
ROCE 27.3% 25.7% 20.3% 23.1%
3. Peers comparison
Equity
value
Enterprise
value
5 yr
EPS
CAGR
EV/sales EV/EBITDA PE PEG
Company 2015 2016 2015 2016 2015 2016 2015
Navneet 377 405 13.6% 2.6 x 2.4 x 13.3x 10.5x 23.1 x 17.8 x 1.7 x
MPS 195 191 57.1% 5.1 x 4.2 x 16.6x 13.5x 26.2 x 25.1 x 0.5 x
Sandesh 58 36 8.7% 0.7 x 0.6 x 1.0 x 0.9 x 7.0 x 6.4 x 0.8 x
DIC_India 53 52 (13.4) 0.5 x 0.5 x 9.1 x 7.9 x 24.1 x 19.0 x N/A
Among peers, Navneet is the most mature company with $405 m as Enterprise value & with equity of
$377 m. Barring MPS, Navneet has shown the best EPS growth rate at 13.6% compounded annually.
The high EV/sales & EV/EBITDA shows the positive market perception of Navneet as a growth stock.
The estimated PE ratio also confirms our hypothesis. The combined effect of lower PEG ratio & high
EPS predicts that the company will give better results than its peers in near term horizon.