Approximately 7% of the 877 largest companies in the French wholesale grain and feed market are "in serious trouble," according to a new story released by French research firm Plimsoll.
"367 companies in the French market wholesale grain and fodder were rated as strong" in the unpublished study. In despite of poor national economic growth, it proved that success was possible, said Plimsoll.
On the other hand, it was reported 65 companies were in serious difficulties and were struggling to carry on in business.
Some key findings from the report were:
- 367 companies rated "strong", showed that the ability to prosper and succeed in the market was possible.
- They reach an average profit margin of 3.9% of turnover.
- 65 companies "endangered" - loosing money, sometimes even for the second consecutive year.
- The acquisition in 2013 of the 24 acquisition targets analyzed in the study could boost external growth of these 367 companies in a strong position.
- 433 companies generate well advised to 1,137,000 euros in sales per employee, a figure well above the industry average.