TERROIRS ET VIGNERONS DE CHAMPAGNE : revenue, balance sheet and financial ratios

In 2024, TERROIRS ET VIGNERONS DE CHAMPAGNE achieves revenue of 282.3 M€. Revenue is growing positively over 9 years (CAGR: +4.3%). Vs 2023: +4%. After deducting consumption (177.5 M€), gross margin stands at 104.8 M€, i.e. a rate of 37%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 28.1 M€, representing 10.0% of revenue. This level of operating margin is satisfactory for the sector. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 7.8 M€, i.e. 2.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 110%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 38%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 25.4 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 4.5% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 495.78. 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 48.1x. 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: 98 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 18 days. The gap of 80 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 578 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 709 days of revenue, i.e. 555.8 M€ to permanently finance. Over 2016-2024, WCR increased by +195%, requiring additional financing.

Based on 55 transactions of similar company sales (all years), the value of TERROIRS ET VIGNERONS DE CHAMPAGNE is estimated at 70 280 673 € (range 36 516 997€ - 173 915 958€). With an EBITDA of 28 102 125€, the sector multiple of 2.8x is applied. The price/revenue ratio is 0.34x (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.
Medium reliability: estimate to be confirmed with in-depth analysis.