LABORATOIRES PHARMY 2 : revenue, balance sheet and financial ratios

In 2018, LABORATOIRES PHARMY 2 achieves revenue of 1.9 M€. Revenue is growing positively over 3 years (CAGR: +1.8%). Slight decline of -1% vs 2017. After deducting consumption (254 k€), gross margin stands at 1.6 M€, i.e. a rate of 87%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 492 k€, representing 26.0% of revenue. Warning negative scissor effect: despite revenue change (-1%), EBITDA varies by -39%, reducing margin by 15.8 pts. This reflects costs rising faster than revenue. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 252 k€, i.e. 13.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 7%. 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 77%. 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 0.3 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 20.7% 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 384.57. 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 0.7x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 62 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 70 days. Favorable situation: supplier credit is longer than customer credit by 8 days. Inventory turnover is 66 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 165 days of revenue, i.e. 870 k€ to permanently finance. Over 2016-2018, WCR increased by +34%, requiring additional financing.

Based on 124 transactions of similar company sales (all years), the value of LABORATOIRES PHARMY 2 is estimated at 335 775 € (range 163 335€ - 1 148 680€). With an EBITDA of 492 353€, the sector multiple of 0.7x is applied. The price/revenue ratio is 0.21x (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.