VIOLAINE DISTRIBUTION INTERNATIONAL : revenue, balance sheet and financial ratios

In 2022, VIOLAINE DISTRIBUTION INTERNATIONAL achieves revenue of 2.0 M€. Over the period 2016-2022, the company shows strong growth with a CAGR (compound annual growth rate) of +6.5%. Vs 2021, growth of +19% (1.7 M€ -> 2.0 M€). After deducting consumption (835 k€), gross margin stands at 1.1 M€, i.e. a rate of 58%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 162 k€, representing 8.2% of revenue. Positive scissor effect: EBITDA margin improves by +5.7 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 167 k€, i.e. 8.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 78%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 32%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 7.9% 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 206.51. 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 1.2x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 85 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 43 days. The gap of 42 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 35 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 82 days of revenue, i.e. 449 k€ to permanently finance. Over 2016-2022, WCR increased by +36%, requiring additional financing.

Based on 124 transactions of similar company sales (all years), the value of VIOLAINE DISTRIBUTION INTERNATIONAL is estimated at 375 406 € (range 153 890€ - 837 736€). With an EBITDA of 161 687€, 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.