SNC LNC KAPPA PROMOTION : revenue, balance sheet and financial ratios

In 2024, SNC LNC KAPPA PROMOTION achieves revenue of 20.8 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +23.9%. Significant drop of -14% vs 2023. After deducting consumption (20.3 M€), gross margin stands at 488 k€, i.e. a rate of 2%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 1.2 M€, representing 5.7% of revenue. Warning negative scissor effect: despite revenue change (-14%), EBITDA varies by -39%, reducing margin by 2.3 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 981 k€, i.e. 4.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 406%. 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 4%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 4.1 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 4.7% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 269.88. 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 17.7x. 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: 141 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 113 days. The company must finance 28 days of gap between collections and payments. Inventory turnover is 223 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 206 days of revenue, i.e. 11.9 M€ to permanently finance.

Based on 80 transactions of similar company sales (all years), the value of SNC LNC KAPPA PROMOTION is estimated at 2 807 065 € (range 1 018 746€ - 7 386 537€). With an EBITDA of 1 192 372€, the sector multiple of 1.0x is applied. The price/revenue ratio is 0.28x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.