INCREASED SALES FOR RICHELIEU IN THE THIRD QUARTER
STRONG PERFORMANCE IN THE U.S. MANUFACTURERS MARKET
HIGHLIGHTS OF THE THIRD QUARTER ENDED AUGUST 31, 2024
Sales of $467.7 million, up 1.9%, including $264.6 million in Canada and US$148.4 million in the United States, up 4.8% ($US).
EBITDA of $53.0 million - EBITDA margin of 11.3%.
Net income attributable to shareholders of $22.7 million, or $0.41 per diluted share.
Adjusted cash flows from operating activities of $42.7 million.
Agreements in principle signed for four new acquisitions in Canada and the U.S.
NINE-MONTH PERIOD
Sales of $1.36 billion, up 1.6%, of which $773.0 million in Canada and US$428.8 million in the United States.
EBITDA of 147.2M$ - EBITDA margin of 10.9%.
Net income attributable to shareholders of $61.4 million, or $1.09 per diluted share.
Adjusted cash flows from operating activities of $122.7 million.
Healthy and solid financial situation as at August 31, 2024 with working capital of $632.0 million (ratio of 3.5:1).
Quarterly dividend of $0.15 per share payable on November 7, 2024, to shareholders registered as of October 24, 2024.
MONTREAL, Oct. 10, 2024 /CNW/ - (TSX:RCH) "Richelieu continued to increase its sales in the third quarter and maintained a strong financial position. The 1.9% rise in sales is all the more appreciable given the current market context and reflects the substantial increase of 7.5% ($US) to manufacturers in the United States and 0.5% in our market in Canada, while our sales to retailers and renovation superstores decreased by 16.8%," said Richard Lord, President and Chief Executive Officer.
PERSPECTIVES – " We believe that the housing shortage currently affecting North America will present promising opportunities for Richelieu. Furthermore, although the renovation market is currently slowing down, we expect it to regain momentum in the coming months, leading to increased demand for our products and services. Sectors such as kitchen cabinets, closets, space planning, and commercial renovations are particularly promising and will continue to be crucial for our future growth. We are well positioned with our North American network of 112 strategically located centres, a business model that is well adapted to the needs of our customers, our offer which is unique due to its great diversity and innovative aspect, and a distinctive value-added service that is effectively complemented by our trilingual website richelieu.com. Our expert team is mobilized to seize the opportunities," added Mr. Lord.
CONTINUATION OF THE ACQUISITION STRATEGY AND OPTIMIZATION OF THE NORTH AMERICAN DISTRIBUTION CENTRE NETWORK
Richelieu is continuing to integrate the three acquisitions made since the beginning of the financial year, namely Allegheny Plywood (Pennsylvania, Ohio) and Rapid Start (Ohio) as well as Olympic Forest Products (Ontario) and expects to close four new acquisitions in Canada and the United States for which the agreements in principle were signed in the third quarter. In addition, as part of its distribution network optimization, the Corporation consolidated two of its distribution centres in the New York City area and on the West Coast of Florida during the quarter.
OPERATING RESULTS FOR THE THIRD QUARTER AND FIRST NINE MONTHS ENDED AUGUST 31, 2024
The following table provides an overview of Richelieu's sales in its two main markets for the quarters ended August 31, 2024 and 2023 :
Quarters ended August 31
2024
2023
∆ %
(in millions of dollars, except exchange rates)
Total
Internal
Acquisitions
Consolidated
467.7
459.0
1.9
(1.3)
3.2
Manufacturers
415.3
396.0
4.9
1.2
3.7
Retailers
52.4
63.0
(16.8)
(16.8)
—
Canada
264.6
270.1
(2.0)
