PHARMACIE SAINT GEORGES : revenue, balance sheet and financial ratios

In 2023, PHARMACIE SAINT GEORGES achieves revenue of 4.1 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +7.5%. Vs 2022: +3%. After deducting consumption (3.1 M€), gross margin stands at 1.0 M€, i.e. a rate of 25%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 287 k€, representing 6.9% of revenue. Warning negative scissor effect: despite revenue change (+3%), EBITDA varies by -37%, reducing margin by 4.5 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 187 k€, i.e. 4.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 16%. 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 68%. 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 1.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 5.6% 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 157.43. 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 1.2x. 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: 7 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 40 days. Excellent situation: suppliers finance 33 days of the operating cycle (retail model). Inventory turnover is 25 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 25 days of revenue, i.e. 292 k€ to permanently finance. Over 2016-2023, WCR increased by +29%, requiring additional financing.

Based on 220 transactions of similar company sales in 2023, the value of PHARMACIE SAINT GEORGES is estimated at 2 721 313 € (range 1 738 183€ - 3 494 692€). With an EBITDA of 286 638€, 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.