BURGERMEISTER VIEUX-THANN : revenue, balance sheet and financial ratios

In 2023, BURGERMEISTER VIEUX-THANN achieves revenue of 4.2 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +8.4%. Vs 2021: +9%. After deducting consumption (2.1 M€), gross margin stands at 2.1 M€, i.e. a rate of 49%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 531 k€, representing 12.6% of revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 333 k€, i.e. 7.9% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 45%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 31%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.6 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 8.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 160.51. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 8.1x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 188 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 111 days. The gap of 77 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 104 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 209 days of revenue, i.e. 2.4 M€ to permanently finance. Over 2016-2023, WCR increased by +129%, requiring additional financing.

Based on 75 transactions of similar company sales (all years), the value of BURGERMEISTER VIEUX-THANN is estimated at 704 761 € (range 361 861€ - 1 394 670€). With an EBITDA of 530 629€, the sector multiple of 1.2x is applied. The price/revenue ratio is 0.16x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.
Medium reliability: estimate to be confirmed with in-depth analysis.