LA MANUFACTURE DE PRODUITS COSMETIQUES : revenue, balance sheet and financial ratios

In 2023, LA MANUFACTURE DE PRODUITS COSMETIQUES achieves revenue of 63 k€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +9.7%. Vs 2019, growth of +59% (39 k€ -> 63 k€). After deducting consumption (19 k€), gross margin stands at 44 k€, i.e. a rate of 70%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 19 k€, representing 30.1% of revenue. Positive scissor effect: EBITDA margin improves by +10.5 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 13 k€, i.e. 21.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 5%. 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 4%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 28.4% 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 1465.07. 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 1.6x. 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: 87 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 26 days. The gap of 61 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 102 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 156 days of revenue, i.e. 27 k€ to permanently finance. Over 2016-2023, WCR increased by +408%, requiring additional financing.

Based on 74 transactions of similar company sales (all years), the value of LA MANUFACTURE DE PRODUITS COSMETIQUES is estimated at 9 397 € (range 3 779€ - 29 601€). With an EBITDA of 18 873€, 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.