HORTICULTURE & JARDINS : revenue, balance sheet and financial ratios

In 2024, HORTICULTURE & JARDINS achieves revenue of 4.6 M€. Over the period 2021-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +13.0%. Vs 2023, growth of +11% (4.1 M€ -> 4.6 M€). After deducting consumption (768 k€), gross margin stands at 3.8 M€, i.e. a rate of 83%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 627 k€, representing 13.7% of revenue. Warning negative scissor effect: despite revenue change (+11%), EBITDA varies by -22%, reducing margin by 5.7 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 395 k€, i.e. 8.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 12%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 54%. 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 0.5 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 11.0% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 226.18. 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 1.1x. 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: 147 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 67 days. The gap of 80 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 20 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 146 days of revenue, i.e. 1.9 M€ to permanently finance.

Based on 125 transactions of similar company sales (all years), the value of HORTICULTURE & JARDINS is estimated at 1 609 930 € (range 606 951€ - 2 849 815€). With an EBITDA of 627 383€, the sector multiple of 2.8x is applied. The price/revenue ratio is 0.35x (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.