Fragancias del Levante SL

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Fragancias del Levante, SL is a company with more than 30 years of experience in the production, transformation, and marketing of aromatic plants and essential oils. Based in Murcia, the company operates in the national and European markets, supplying high-quality raw materials to the fragrance, aroma, cosmetics, and aromatherapy sectors.

Specializing in the distillation and transformation of native aromatic and medicinal plants, the company combines tradition and innovation to recover and enhance an ancestral activity in the Murcia Region. Its production model is sustainable and environmentally friendly, collaborating with small local farmers who use non-intensive farming methods, without chemicals, and with plant-based fertilizers, promoting the circular economy in the rural areas where it operates.

Its product catalog includes essential oils, hydrosols, fresh stems, and dried leaves of plants such as lavender, rosemary, thyme, oregano, and sage, essential raw materials for the cosmetics, food, and aromatherapy industries.

The company has 339 hectares in operation, distributed in Lorca, Caravaca, Cartagena, Mazarrón, and Burgos, strategic locations that ensure the diversity and quality of its production. This geographical dispersion allows optimizing harvests and ensuring a stable supply of products throughout the year.

Aware of the importance of quality and traceability, Fragancias del Levante has obtained ISO 9001 certification, ensuring that all its processes meet the highest standards of management and quality control. Thanks to its certified production system, the company guarantees total traceability of its products, from cultivation to final delivery, responding to the demands of clients in highly specialized sectors.

In addition, Fragancias del Levante has established agreements with some of the leading distributors in the sector, strengthening the marketing of its production and providing a solid foundation for its growth.

Committed to sustainability and excellence, the company continues to innovate in its production processes to offer high-quality products, maintaining its commitment to the environment and local communities.

DUE DILIGENCE: THE EXPERT'S OPINION

The analysis of Fragancias del Levante SL, a company proposed for fundraising, is based on the report provided by Experian-Axesor and Informa D&B (Dun & Bradstreet), using available business databases, such as Experian Bureau Empresarial (EBE), Red Unpaid Credits Information (ICIRED), ASNEF Empresas, Judicial Unpaid Records (RIJ), and Axesor Monitoriza, as well as financial scoring tools, which combine traditional methodologies (economic-financial analysis, trend analysis, and reputation analysis) with advanced tools of Artificial Intelligence and Machine Learning.

Fragancias del Levante SL is a company based in Murcia, established in 2021, operating in the sector 2053 - Manufacturing of essential oils. Its main activity focuses on the agricultural exploitation, distillation, and transformation of native aromatic and medicinal plants, with a business model based on sustainability and circular economy.

The sole administrator is Leonardo Aznar Zamora, about whom no negative aspects have emerged.

 
Risk Analysis and Scoring Methodology

The company's financial analysis was carried out through the risk rating provided by Axesor, which places the company in a moderate risk category.

This scoring is obtained through a solvency evaluation algorithm, which integrates and weighs various key parameters, providing a structured evaluation based on three main indicators:

• Experian Bureau Empresarial (EBE) Rating: evaluates the company's payment behavior and commercial reliability.
• Axesor Scoring: analyzes the probability of default, which in the case of Fragancias del Levante SL is estimated at 1.25%, above the sector average of 1.05%, but within acceptable levels of moderate risk.
• Sectorial Comparative Analysis: compares the company's financial performance with others of similar size and activity.

 
Financial Situation Analysis

Key financial indicators for the years 2023 (filed balances) and 2024 (provisional):

• Turnover: 1,622,832 € in 2023 (+42.61% compared to 2022) and 1,139,862 € in 2024 (-29.76% compared to 2023), reflecting an adjustment in revenue due to market price fluctuations.
• EBITDA: 116,117 € in 2023 (+3.69% compared to 2022) and 118,098 € in 2024 (+1.71% compared to 2023), indicating that fluctuations in revenue did not negatively impact operating profitability.
• Net profit: 84,125 € in 2023 (+3.42% compared to 2022) and 82,160 € forecast for 2024 (-2.33% compared to 2023), showing a slight contraction in net profit, but without significant variations.
• Working capital: 249,151 € in 2023 (+50.69% compared to 2022) and 271,209 € in 2024 (+8.85% compared to 2023), increasing, reflecting an improvement in the company's ability to meet short-term obligations.
• Total debt: 390,340 € in 2023 (+58.36% compared to 2022) and 511,286 € in 2024 (+30.98% compared to 2023), indicating a progressive increase in debt, but in line with the company's growth.
• Financial autonomy: 43.15% in 2023 and 44.24% in 2024, maintaining a balance between equity and debt, although with a certain degree of indebtedness.

The company has experienced strong revenue growth in 2023 (+42.61%), followed by an adjustment in 2024 (-29.76%), due to market price fluctuations. However, the EBITDA has remained stable and growing (+1.71% in 2024), indicating that the reduction in revenue has not affected operating profitability.

On the other hand, total debt has continued to increase (+30.98% in 2024), but the financial autonomy ratio has also improved (44.24%), suggesting that the company maintains a balance between own resources and external financing. Additionally, the evolution of working capital in 2024 (+8.85%) reinforces the company's capacity to manage its short-term financial obligations.

In terms of financial management, the company has improved its average collection period, going from 88 days in 2022 to 70 days in 2023, although the average payment period to suppliers increased from 106 days to 112 days, suggesting a working capital optimization strategy.

Conclusions of the Analysis

• Fragancias del Levante SL is a young company, with four years of activity, but with solid growth and a stable financial structure within its sector.
• Its scoring places it in a moderate risk category, with a default probability of 1.25%, slightly higher than the sector average.
• Its business model, based on the sustainable production of essential oils and products derived from aromatic plants, allows it to operate in markets with growing demand, especially in the cosmetics, fragrances, and aromatherapy sectors.
• Despite the increase in its level of indebtedness, the company has improved its financial management, reducing its collection period and optimizing its working capital.
• No judicial incidents or negative information about the company have been detected..

It is reminded that the indications presented here are only a reference to autonomously make an informed decision according to one's own investment capacity, and it is always recommended to conduct an analytical evaluation of the available elements.

CONTRACTUAL STRUCTURE

The Financing Contract is a purpose-specific loan: The company commits to using the funds received from the Investors exactly as specified in the Project presented in the public offering and not to divert them for other purposes.

AMORTIZATION SCHEDULE OF THE LOAN

The financing contracts between the investors and Fragancias del Levante SL will have a duration of 36 months and will be repaid through quarterly installments. The amortization will follow the French system, with constant payments that include both interest and principal, maintaining a structure of fixed installments for the entire duration of the loan.

The amortization plan has been calculated with an interest rate of 8.75% on a total capital of 120,000 €. According to this simulation, each quarterly installment amounts to 11,478.22 €.

Note: The start of the amortization plan is set for the first available date following the release of the funds. The attached table is an estimated simulation based on the closing date of the campaign, scheduled for 30/04/2025.
 

*Gross of any withholding taxes.
**The interest rate may vary based on the applicable Bonuses, as described in detail in the KIIS.

CONFLICTS OF INTEREST

The Relevant Parties, except for the Conflict of Interest Policy Officer and the Crowdfunding Service Provider, who under no circumstances may participate in the Crowdfunding Offers published on the Platform, are authorized to invest in this Crowdfunding Offer, under the same conditions as all other Investors and without preferential treatment or privileged access to information.

For more information, please refer to the policy at the following link

SDGs ACTIVATED BY THE PROJECT

 
By financing this project, you can contribute to supporting and implementing the following SDGs - Sustainable Development Goals:
 

 
Why these SDGs?

• SDG 3: Ensure health and well-being for all at all ages;
• SDG 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all;
• SDG 12: Ensure sustainable consumption and production patterns;
• SDG 13: Take urgent action to combat climate change and its impacts;
• SDG 15: Protect, restore and promote sustainable use of terrestrial ecosystems.

Become a protagonist of the future and sustainable development by financing this initiative!

WHAT ARE THE ENVIRONMENTAL BENEFITS GENERATED BY THE PROJECT?

For the operation subject to financing, it has not been possible to calculate direct environmental benefits, as it is an operation aimed at liquidity and productive expansion. However, Fragancias del Levante SL is a company committed to sustainability and circular economy, integrating responsible practices throughout its production chain.

Its business model is based on the cultivation and transformation of native aromatic and medicinal plants, collaborating with small local farmers who employ non-intensive cultivation methods, without the use of chemical products and with plant-based fertilizers. This approach not only contributes to the preservation of biodiversity and local ecosystems, but also promotes responsible soil and water resource management.

Although this particular operation does not entail a direct reduction in CO₂ emissions, the growth of Fragancias del Levante SL strengthens a business model aligned with the ecological transition, promoting responsible agricultural practices and a positive impact on the rural environment.