Food & Beverage and Hospitality Grew with Moderation in 2012
Final 2012 financial results highlight that high-end food&beverage and hospitality industries continued growing, even if at a slower rate, according to the Food&Beverage Luxury Insight, the second annual report by SDA Bocconi and Altagamma , which analizes the 2012 balance sheets of the international high-end food&beverage companies, presented this morning in Milan.
The report analyzed the performances of a selected sample of 39 internationally renowned listed companies with sales in excess of € 100 million as of 2012, operating in related industries: Food diversified, Alcoholic drinks and Hospitality.
Surveyed companies grew by 6.5% in 2012 (10.47% in 2011). This moderatly positive result translated into higher profitability, with return on investments growing by 5.47% from 5% in 2011 and return on equity hiking to 13.06% (vs. 11.35% in 2011). Sales growth was followed by a rise in operating efficiency, with the EBIT margin growing for the fourth year in a row to 18.57%. Net cash flow to sales decreased to 14.44% (16.19% in 2011), even if working capital to sales went on decreasing to 21.64%. The average trade debtor days were 47 (from 46 in 2011).
"Evidence of the consolidation", SDA Bocconi's Massimiliano Bruni, a co-author, said, "is not only the sales growth, but also the renewed attention to operating efficiency and costs control".
The Alcoholic drinks cluster was the most dynamic and the best performing in terms of returns, thanks to the prolonged streak of acquisitions of the last years, while Food diversified is the cluster with the best sales growth.
INDUSTRY FINANCIAL HIGHLIGHTS
| Parameter | Industry Average |
| Sales Growth | 6.5% |
| Return on Investments (Roi) | 5.4% |
| Return on Equity (Roe) | 13% |
| EBIT Margin | 18.5% |
| Asset Turnover | 0.46 |
| Net Cash Flow to Sales | 14.4% |
| Gearing | 0.67 |
| Current ratio | 1.58 |
| Intangible Assets Weight | 3.,6% |
| Fixed Assets Weight | 41.8% |
| Working Capital to Sales | 21.6% |
| Trade Debtor Days | 47 |
| Total Investments on Sales | 11.1% |
Source: Food&Beverage Luxury Insight, FY 2012
TOP TEN BY GROWTH SALES
| Company | Country | Cluster | Growth Sales |
|
Boston Beer |
Usa | Alcoholic Drinks | 39.7% |
|
Advini |
Fra | Alcoholic Drinks | 28.6% |
|
Chipotle Mexican Grill |
Usa | Food Diversified | 20.3% |
|
PPHE Hotel Group |
Ned | Hospitality | 19.6% |
|
Rémy Cointreau |
Fra | Alcoholic Drinks | 16.2% |
|
Del Frisco's Restaurant Group |
Usa | Hospitality | 15.2% |
|
Regal Hotels |
Berm | Hospitality | 14.4% |
|
Starwood Hotels |
Usa | Hospitality | 12.3% |
|
Bravo Brio Restaurant Group |
Usa | Food Diversified | 10.8% |
|
Hotel Properties Limited |
Sing | Hospitality |
9.9% |
Source: Food&Beverage Luxury Insight, FY 2012
TOP TEN BY ROI
| Company | Country | Cluster | ROI |
|
Chiplote Mexican Grill |
Usa | Food Diversified | 16.6% |
|
Boston Beer Co. |
Usa | Alcoholic Drinks | 16.3% |
|
Brown-Forman Corporation |
Usa | Alcoholic Drinks | 16.2% |
|
Chocoladefabriken Lindt |
Swi | Food Diversified | 10.3% |
| Diageo | Uk | Alcoholic Drinks | 9.3% |
| Marriott International | Usa | Hospitality | 9% |
| Kosmopolito Hotels | HK | Hospitality | 7.8% |
|
C&C Group |
Irl | Alcoholic Drinks | 7.3% |
|
Starwood Hotels |
Usa | Hospitality | 6.3% |
|
PPHE Hotel Group |
Ned | Hospitality | 6.1% |
Source: Food&Beverage Luxury Insight, FY 2012
TOP TEN BY EBIT
| Company | Country | Cluster | EBIT |
| Brown-Forman Corporation | Usa | Alcoholic Drinks | 31.5% |
| Diageo | Uk | Alcoholic Drinks | 29.9% |
| Kosmopolito Hotels | HK | Hospitality | 28.6% |
|
Regal Hotels |
Berm | Hospitality | 26.7% |
| PPHE Hotel Group | Ned | Hospitality | 26.1% |
| Pernod Ricard | Fra | Alcoholic Drinks | 25.7% |
| Beam | Usa | Alcoholic Drinks | 25.4% |
| C&C Group | Irl | Alcoholic Drinks | 23.8% |
| Davide Campari Milano | Ita | Alcoholic Drinks | 23% |
|
Rémy Cointreau |
Fra | Alcoholic Drinks | 20.5% |
Source: Food&Beverage Luxury Insight, FY 2012
TOP TEN BY CASH GENERATION
| Company | Country | Cluster | Cashflow to Sales |
|
Hotel Properties Limited |
Sing | Hospitality | 33.9% |
| Kosmopolito Hotels | HK | Hospitality | 33.7% |
| Stamford Land Corporation | Sing | Alcoholic Drinks | 24.4% |
|
Millennium & Copthorne |
Uk | Hospitality | 20.7% |
| Constellation Brands | Usa | Hospitality | 19.9% |
|
Diageo |
Uk | Alcoholic Drinks | 19.4% |
| Mandarin Oriental | Berm | Alcoholic Drinks | 19.4% |
| Brown-Forman Corporation | Usa | Hospitality | 18.8% |
| Starwood Hotels | Usa | Hospitality | 18.7% |
| HK and Shanghai Hotels | HK | Hospitality | 18.6% |
Source: Food&Beverage Luxury Insight, FY 2012
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