ESSENTIELS PHARMA : revenue, balance sheet and financial ratios

In 2024, ESSENTIELS PHARMA achieves revenue of 13.0 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +6.6%. Vs 2023: +1%. After deducting consumption (10.3 M€), gross margin stands at 2.7 M€, i.e. a rate of 21%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 236 k€, representing 1.8% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 16 k€, i.e. 0.1% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 372%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 8%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 14.8 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 139.62. 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 19.3x. 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: 55 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 97 days. Excellent situation: suppliers finance 42 days of the operating cycle (retail model). Inventory turnover is 55 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 124 days of revenue, i.e. 4.4 M€ to permanently finance.

Based on 225 transactions of similar company sales in 2024, the value of ESSENTIELS PHARMA is estimated at 3 621 607 € (range 2 829 574€ - 4 895 470€). With an EBITDA of 236 090€, the sector multiple of 9.2x is applied. The price/revenue ratio is 0.64x (in line with sector norms). 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.