CHAMPAGNE DE VENOGE : revenue, balance sheet and financial ratios

In 2024, CHAMPAGNE DE VENOGE achieves revenue of 7.4 M€. Revenue is growing positively over 8 years (CAGR: +2.5%). Significant drop of -28% vs 2023. After deducting consumption (4.6 M€), gross margin stands at 2.8 M€, i.e. a rate of 38%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 920 k€, representing 12.5% of revenue. Warning negative scissor effect: despite revenue change (-28%), EBITDA varies by -58%, reducing margin by 8.9 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 225 k€, i.e. 3.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 139%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 39%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 51.4 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 4.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 1417.83. 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 65.3x. 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: 80 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 75 days. The company must finance 5 days of gap between collections and payments. Inventory turnover is 1166 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 1272 days of revenue, i.e. 26.0 M€ to permanently finance. Over 2016-2024, WCR increased by +40%, requiring additional financing.

Based on 55 transactions of similar company sales (all years), the value of CHAMPAGNE DE VENOGE is estimated at 2 096 441 € (range 1 083 653€ - 5 199 695€). With an EBITDA of 919 938€, the sector multiple of 2.8x is applied. The price/revenue ratio is 0.34x (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.