FROID CHAMPAGNE-ARDENNE : revenue, balance sheet and financial ratios

In 2024, FROID CHAMPAGNE-ARDENNE achieves revenue of 1.9 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +12.8%. Vs 2023, growth of +11% (1.7 M€ -> 1.9 M€). After deducting consumption (644 k€), gross margin stands at 1.2 M€, i.e. a rate of 66%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 239 k€, representing 12.7% of revenue. Positive scissor effect: EBITDA margin improves by +3.2 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 135 k€, i.e. 7.2% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 84%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 39%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 2.9 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 9.3% 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 161.91. 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 8.7x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 72 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 84 days. Favorable situation: supplier credit is longer than customer credit by 12 days. Inventory turnover is 72 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 141 days of revenue, i.e. 735 k€ to permanently finance. Over 2016-2024, WCR increased by +2558%, requiring additional financing.

Based on 104 transactions of similar company sales (all years), the value of FROID CHAMPAGNE-ARDENNE is estimated at 309 073 € (range 188 470€ - 911 056€). With an EBITDA of 238 828€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.27x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.