PHARMACIE PASTEUR : revenue, balance sheet and financial ratios

In 2023, PHARMACIE PASTEUR achieves revenue of 1.1 M€. Activity remains stable over the period (CAGR: -0.8%). Significant drop of -52% vs 2022. After deducting consumption (798 k€), gross margin stands at 298 k€, i.e. a rate of 27%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 27 k€, representing 2.5% of revenue. Warning negative scissor effect: despite revenue change (-52%), EBITDA varies by -80%, reducing margin by 3.4 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 3 k€, i.e. 0.3% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 311%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 22%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 71.7 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 0.9% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 125.82. 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 58.4x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 5 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 33 days. Favorable situation: supplier credit is longer than customer credit by 28 days. Inventory turnover is 39 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 43 days of revenue, i.e. 131 k€ to permanently finance. Over 2016-2023, WCR increased by +83%, requiring additional financing.

Based on 220 transactions of similar company sales in 2023, the value of PHARMACIE PASTEUR is estimated at 370 756 € (range 249 537€ - 465 072€). With an EBITDA of 27 373€, the sector multiple of 10.0x is applied. The price/revenue ratio is 0.69x (in line with sector norms). 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.