Interview from the management talking about sales being good and water break even in 2-3 years (although their previous predictions in water business were wrong)
Hey Olivier, it's hard for me to understand the french Financials but I want to provide you a few questions. do they include in depreciation and amortization their lease expenses?
Are those added back to the operating cash flow and then subtracted in the financing cash flow?
It seems that they own the properties, am I right? If that's the case, it would imply that their initial Capex for a new bakery are super high if they don't do a sale lease back with much lower Returns.
How many bakeries did they opened, so it would be possible to get to average Capex per new bakery and divide the existing bakeries to receive the maintenance Capex per bakery.
That should support your efforts to do some modeling.
Hi Paul. Sorry I missed your comment, somehow notifications are disabled, got to fix that.
Yes they do pay some rent and it is deducted in the cash flow from financial activities, and some readers educated me on that. This pushes the valuation a little bit higher, still extremely cheap. they do like 80 millions in sales, 8-9 millions ebitda on a market cap of 23 millions.
They own some spaces and rent some but it's not clear to me in their financials. They also have investments related to the bakery items sold to supermarkets and small stores, with production lines.
What we can do is take the whole cash flow from investments and calculate how much more ebitda it brings each year pre covid. As far as I remember it was decent, I always make sure that there is some growth in operating profits when there is capex.
Interview from the management talking about sales being good and water break even in 2-3 years (although their previous predictions in water business were wrong)
https://investir.lesechos.fr/actions/actualites/l-equilibre-d-ici-2-ou-3-ans-pour-le-pole-eau-minerale-de-poulaillon-2016410.php
Hey Olivier, it's hard for me to understand the french Financials but I want to provide you a few questions. do they include in depreciation and amortization their lease expenses?
Are those added back to the operating cash flow and then subtracted in the financing cash flow?
It seems that they own the properties, am I right? If that's the case, it would imply that their initial Capex for a new bakery are super high if they don't do a sale lease back with much lower Returns.
How many bakeries did they opened, so it would be possible to get to average Capex per new bakery and divide the existing bakeries to receive the maintenance Capex per bakery.
That should support your efforts to do some modeling.
Hi Paul. Sorry I missed your comment, somehow notifications are disabled, got to fix that.
Yes they do pay some rent and it is deducted in the cash flow from financial activities, and some readers educated me on that. This pushes the valuation a little bit higher, still extremely cheap. they do like 80 millions in sales, 8-9 millions ebitda on a market cap of 23 millions.
They own some spaces and rent some but it's not clear to me in their financials. They also have investments related to the bakery items sold to supermarkets and small stores, with production lines.
What we can do is take the whole cash flow from investments and calculate how much more ebitda it brings each year pre covid. As far as I remember it was decent, I always make sure that there is some growth in operating profits when there is capex.