KAPPA FRANCE : revenue, balance sheet and financial ratios

In 2024, KAPPA FRANCE achieves revenue of 72.0 M€. Revenue is growing positively over 9 years (CAGR: +4.9%). Slight decline of -2% vs 2023. After deducting consumption (36.7 M€), gross margin stands at 35.3 M€, i.e. a rate of 49%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 7.2 M€, representing 10.0% of revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 2.5 M€, i.e. 3.4% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 184%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 13%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 6.6 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 2.4% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 141.73. 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 14.9x. 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: 64 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 115 days. Excellent situation: suppliers finance 51 days of the operating cycle (retail model). Inventory turnover is 68 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 142 days of revenue, i.e. 28.4 M€ to permanently finance. Over 2016-2024, WCR increased by +27%, requiring additional financing.

Based on 124 transactions of similar company sales (all years), the value of KAPPA FRANCE is estimated at 13 567 940 € (range 5 803 647€ - 30 786 321€). With an EBITDA of 7 171 799€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.17x (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.