| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 57.05 | 55831 |
| Intrinsic value (DCF) | 19.05 | 18576 |
| Graham-Dodd Method | 0.11 | 7 |
| Graham Formula | 2.62 | 2466 |
KKO International SA (ALKKO.PA) is a France-based agricultural company specializing in cocoa plantation operations worldwide. Founded in 2010 and headquartered in Paris, the company cultivates various crops, including coffee, neem, teak, and moringa, but its primary focus is cocoa production. KKO International processes cocoa into refined and regular mass, dark and milk chocolate couverture, and chocolate spreads, producing approximately 3,000 tons annually. Operating in the Consumer Defensive sector under Agricultural Farm Products, the company serves global markets with its pure cocoa-based products. With a market capitalization of €23.5 million, KKO International plays a niche role in the cocoa supply chain, catering to chocolate manufacturers and food producers. The company's vertically integrated model—from plantation to finished cocoa products—positions it uniquely in the competitive agribusiness landscape.
KKO International SA presents a high-risk, niche investment opportunity in the cocoa and agricultural products sector. The company's small market cap (€23.5M) and negative beta (-0.313) suggest low correlation with broader markets but also limited liquidity. While revenue (€9.3M) and net income (€1.23M) indicate modest profitability, the high debt-to-equity ratio (€7.76M debt vs. €0.44M cash) raises solvency concerns. The lack of dividends and minimal EPS (€0.008 diluted) may deter income investors. However, direct exposure to cocoa—a commodity with growing global demand—could appeal to speculators. Operational cash flow (€0.54M) barely covers capital expenditures (-€0.33M), suggesting tight margins. Investors should weigh the company's specialized cocoa focus against its financial leverage and small-scale operations.
KKO International competes in the fragmented global cocoa production market, where scale typically determines competitiveness. The company's ~3,000-ton annual production is minuscule compared to multinational commodity traders, forcing it to compete on quality and niche product offerings (like single-origin couverture). Its vertically integrated model—controlling cultivation and initial processing—provides some cost control and quality assurance advantages over pure traders. However, lack of diversification beyond cocoa (despite other plantations) and minimal downstream chocolate manufacturing limit revenue streams. Geographic concentration risk exists as most plantations are likely in single regions (exact locations undisclosed). The company's small size prevents economies of scale enjoyed by giants like Barry Callebaut, leaving it vulnerable to cocoa price volatility. Its Paris listing and EU base provide regulatory stability but may limit access to major cocoa-growing regions in West Africa. Sustainability certifications (if obtained) could be a differentiator in premium markets.