HAPPY CURL : revenue, balance sheet and financial ratios

In 2023, HAPPY CURL achieves revenue of 113.6 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +16.6%. Vs 2022, growth of +30% (87.6 M€ -> 113.6 M€). After deducting consumption (49.1 M€), gross margin stands at 64.5 M€, i.e. a rate of 57%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 10.7 M€, representing 9.4% of revenue. Warning negative scissor effect: despite revenue change (+30%), EBITDA varies by +4%, reducing margin by 2.3 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 5.4 M€, i.e. 4.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 40%. Debt remains under control: the company retains capacity to raise new debt if needed. Financial autonomy (= Equity / Total assets x 100) reaches 47%. 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 1.7 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 6.5% 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 171.99. 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 1.0x. Coverage is limited: any activity downturn would jeopardize interest payments.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 10 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 63 days. Excellent situation: suppliers finance 53 days of the operating cycle (retail model). Inventory turnover is 71 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 74 days of revenue, i.e. 23.2 M€ to permanently finance. Over 2016-2023, WCR increased by +287%, requiring additional financing.

Based on 64 transactions of similar company sales (all years), the value of HAPPY CURL is estimated at 27 578 961 € (range 15 880 499€ - 93 037 532€). With an EBITDA of 10 685 325€, the sector multiple of 2.4x is applied. The price/revenue ratio is 0.38x (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.