Acomo, a trading house in spices based in the Netherlands, has been compared to the historic East India Company. Listed on Euronext Amsterdam since 1908, Acomo holds a dominant position in the European market. With an average daily trading volume of approximately 17,500 shares, the company’s market capitalization is around 525M EUR.
In 2023, Acomo experienced a slight decline in financial performance compared to the previous year. Despite a decrease in total revenue to just under 1.27B EUR, the company maintained a decent adjusted EBITDA of 92M EUR. However, various factors such as increased G&A expenses led to a decrease in operating income to 70.3M EUR.
Acomo generated about 137M EUR in operating cash flow, with an adjusted operating cash flow of 57M EUR after deducting certain expenses. The company’s net attributable free cash flow was approximately 51M EUR, representing 1.72 EUR per share.
Looking ahead to 2024, Acomo reported a marginal decrease in total revenue in the first quarter. The company recently announced an agreement to acquire a nuts and dried fruit business in Northern Europe, aiming to strengthen its spices and nuts segment. This strategic acquisition aligns with Acomo’s focus on expanding in profitable divisions.
Despite the challenges faced in 2023 and the uncertainties in 2024, Acomo remains positioned to perform well. With a reasonable net debt-to-EBITDA ratio and an EV/EBITDA valuation of around 8.2, the company’s reputation in the market is solid. Investors may consider monitoring Acomo’s performance for potential investment opportunities.