PRODEVAR : revenue, balance sheet and financial ratios

In 2021, PRODEVAR achieves revenue of 479 k€. Revenue is declining over the period 2015-2021 (CAGR: -16.5%). Significant drop of -69% vs 2020. After deducting consumption (-247 €), gross margin stands at 479 k€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 78 k€, representing 16.4% of revenue. Warning negative scissor effect: despite revenue change (-69%), EBITDA varies by -80%, reducing margin by 8.9 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 534 k€, i.e. 111.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 42%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 53%. 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 0.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 209.0% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 208.06. 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 610.3x. 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: 0 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 178 days. Excellent situation: suppliers finance 178 days of the operating cycle (retail model). Inventory turnover is 244 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 271 days of revenue, i.e. 361 k€ to permanently finance. Notable WCR improvement over the period (-98%), freeing up cash.

Based on 131 transactions of similar company sales (all years), the value of PRODEVAR is estimated at 594 806 € (range 188 408€ - 1 464 966€). With an EBITDA of 78 279€, the sector multiple of 4.8x is applied. The price/revenue ratio is 0.36x (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.