SUD OUEST FLACONNAGE : revenue, balance sheet and financial ratios

In 2024, SUD OUEST FLACONNAGE achieves revenue of 20.5 M€. Over the period 2017-2024, the company shows strong growth with a CAGR (compound annual growth rate) of +9.6%. Slight decline of -8% vs 2023. After deducting consumption (13.3 M€), gross margin stands at 7.2 M€, i.e. a rate of 35%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.0 M€, representing 9.7% of revenue. Warning negative scissor effect: despite revenue change (-8%), EBITDA varies by -26%, reducing margin by 2.3 pts. This reflects costs rising faster than revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 1.4 M€, i.e. 6.7% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 15%. 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 57%. 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 7.4% 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 223.88. 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 1.0x. 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: 34 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 44 days. Favorable situation: supplier credit is longer than customer credit by 10 days. Inventory turnover is 40 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 98 days of revenue, i.e. 5.6 M€ to permanently finance. Over 2017-2024, WCR increased by +156%, requiring additional financing.

Based on 228 transactions of similar company sales (all years), the value of SUD OUEST FLACONNAGE is estimated at 2 805 488 € (range 1 150 084€ - 7 459 578€). With an EBITDA of 1 978 438€, the sector multiple of 1.5x is applied. The price/revenue ratio is 0.13x (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.