EUROPEENNE DISTRIBUTION PARFUMERIE - EDIPAR : revenue, balance sheet and financial ratios

In 2024, EUROPEENNE DISTRIBUTION PARFUMERIE - EDIPAR achieves revenue of 7.7 M€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +5.1%. Significant drop of -20% vs 2023. After deducting consumption (652 k€), gross margin stands at 7.1 M€, i.e. a rate of 92%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 623 k€, representing 8.1% of revenue. Warning negative scissor effect: despite revenue change (-20%), EBITDA varies by -46%, reducing margin by 3.9 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 365 k€, i.e. 4.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 65%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 36%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 6.4% 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 203.13. 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 3.1x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 27 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 66 days. Excellent situation: suppliers finance 39 days of the operating cycle (retail model). Inventory turnover is 7 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 25 days of revenue, i.e. 528 k€ to permanently finance. Notable WCR improvement over the period (-64%), freeing up cash.

Based on 74 transactions of similar company sales (all years), the value of EUROPEENNE DISTRIBUTION PARFUMERIE - EDIPAR is estimated at 487 852 € (range 242 384€ - 1 336 042€). With an EBITDA of 622 546€, the sector multiple of 0.6x is applied. The price/revenue ratio is 0.11x (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.