SEPHORA : revenue, balance sheet and financial ratios

In 2024, SEPHORA achieves revenue of 2.5 Bn€. Over the period 2016-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +7.1%. Vs 2023, growth of +16% (2.2 Bn€ -> 2.5 Bn€). After deducting consumption (1.4 Bn€), gross margin stands at 1.1 Bn€, i.e. a rate of 42%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 14.3 M€, representing 0.6% of revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 341.5 M€, i.e. 13.6% 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 53%. 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 0.4 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 15.9% 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 115.45. 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 246.9x. 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: 29 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 67 days. Excellent situation: suppliers finance 38 days of the operating cycle (retail model). Inventory turnover is 47 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 60 days of revenue, i.e. 416.5 M€ to permanently finance. Over 2016-2024, WCR increased by +46%, requiring additional financing.

Based on 132 transactions of similar company sales (all years), the value of SEPHORA is estimated at 577 193 539 € (range 317 374 310€ - 1 098 018 051€). With an EBITDA of 14 343 930€, the sector multiple of 3.2x 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.