ALLIANCE DES VIANDES DE FRANCE : revenue, balance sheet and financial ratios

In 2018, ALLIANCE DES VIANDES DE FRANCE achieves revenue of 31.8 M€. Over the period 2016-2018, the company shows strong growth with a CAGR (compound annual growth rate) of +51.3%. Vs 2017, growth of +20% (26.5 M€ -> 31.8 M€). After deducting consumption (21.3 M€), gross margin stands at 10.5 M€, i.e. a rate of 33%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 3.3 M€, representing 10.3% of revenue. Positive scissor effect: EBITDA margin improves by +4.3 pts, sign of improved operational efficiency. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.6 M€, i.e. 5.0% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 28%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 58%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 8.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 184.71. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 0.7x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 16 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 20 days. Favorable situation: supplier credit is longer than customer credit by 4 days. Inventory turnover is 11 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 12 days of revenue, i.e. 1.0 M€ to permanently finance. Over 2016-2018, WCR increased by +176%, requiring additional financing.

Indicative estimate only : the number of comparable transactions in this sector is limited (45 transactions). This range of 1 914 749€ to 12 515 198€ is provided for information purposes only and requires in-depth analysis to be confirmed.