CENTRE EUROPEEN DE BIOTECHNOLOGIE : revenue, balance sheet and financial ratios

In 2024, CENTRE EUROPEEN DE BIOTECHNOLOGIE achieves revenue of 4.6 M€. Revenue is growing positively over 9 years (CAGR: +4.7%). Vs 2023, growth of +50% (3.1 M€ -> 4.6 M€). After deducting consumption (1.9 M€), gross margin stands at 2.7 M€, i.e. a rate of 60%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 319 k€, representing 7.0% of revenue. Positive scissor effect: EBITDA margin improves by +16.5 pts, sign of improved operational efficiency. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 33 k€, i.e. 0.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 97%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 45%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 6.9 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 5.3% 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 334.21. 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 20.6x. 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: 1 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 21 days. Favorable situation: supplier credit is longer than customer credit by 20 days. Inventory turnover is 122 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 94 days of revenue, i.e. 1.2 M€ to permanently finance.

Based on 76 transactions of similar company sales (all years), the value of CENTRE EUROPEEN DE BIOTECHNOLOGIE is estimated at 493 541 € (range 218 072€ - 869 694€). With an EBITDA of 319 499€, the sector multiple of 1.3x is applied. The price/revenue ratio is 0.20x (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.