PRIMEO RESEAU DE DISTRIBUTION : revenue, balance sheet and financial ratios

In 2023, PRIMEO RESEAU DE DISTRIBUTION achieves revenue of 10.2 M€. Revenue is growing positively over 8 years (CAGR: +3.6%). Vs 2022, growth of +18% (8.7 M€ -> 10.2 M€). After deducting consumption (6.0 M€), gross margin stands at 4.2 M€, i.e. a rate of 41%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 866 k€, representing 8.5% of revenue. Warning negative scissor effect: despite revenue change (+18%), EBITDA varies by -70%, reducing margin by 25.2 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Net income is negative at -1.2 M€ (-11.9% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 251%. 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 24%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 27.5 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 6.6% 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 265.66. 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 22.6x. 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: 131 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 47 days. The gap of 84 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 32 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 159 days of revenue, i.e. 4.5 M€ to permanently finance. Over 2016-2023, WCR increased by +96%, requiring additional financing.

Based on 93 transactions of similar company sales (all years), the value of PRIMEO RESEAU DE DISTRIBUTION is estimated at 3 476 059 € (range 495 868€ - 15 811 150€). With an EBITDA of 865 868€, the sector multiple of 2.3x is applied. The price/revenue ratio is 0.59x (in line with sector norms). 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.
Medium reliability: estimate to be confirmed with in-depth analysis.