EG LABO - LABORATOIRES EUROGENERIC : revenue, balance sheet and financial ratios

In 2024, EG LABO - LABORATOIRES EUROGENERIC achieves revenue of 209.9 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.7%. Vs 2023: +5%. After deducting consumption (93.8 M€), gross margin stands at 116.2 M€, i.e. a rate of 55%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 11.6 M€, representing 5.5% of revenue. Positive scissor effect: EBITDA margin improves by +4.3 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 654 k€, i.e. 0.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 126%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 19%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 26.5 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 179.95. 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 13.4x. 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: 62 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 82 days. Favorable situation: supplier credit is longer than customer credit by 20 days. Inventory turnover is 86 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 153 days of revenue, i.e. 89.3 M€ to permanently finance. Over 2016-2024, WCR increased by +65%, requiring additional financing.

Based on 124 transactions of similar company sales (all years), the value of EG LABO - LABORATOIRES EUROGENERIC is estimated at 17 606 069 € (range 9 245 929€ - 55 890 157€). With an EBITDA of 11 605 855€, the sector multiple of 0.7x is applied. The price/revenue ratio is 0.21x (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.