8.6% SALES INCREASE IN THE FIRST QUARTER - FIVE ACQUISITIONS SINCE THE BEGINNING OF THE 2025 FISCAL YEAR
HIGHLIGHTS OF THE FIRST QUARTER ENDED FEBRUARY 28, 2025
Sales of $441.7 million, up by 8.6%, driven equally by internal growth and acquisitions.
In Canada, sales reached $241.6 million, up 4.1%.
In the United States, sales totalled US$139.8 million, up 7.6%, representing 45% of total sales.
EBITDA of $42.4 million, up 5.0% - EBITDA margin of 9.6%.
Net income attributable to shareholders of $13.9 million, or $0.25 per diluted share.
Solid financial position as of February 28, 2025 - working capital of $613.2 million - ratio of 2.9:1.
Expansion: five new acquisitions since the beginning of the fiscal year, including one after the end of the first quarter, representing approximately $50 million in annual sales.
Quarterly dividend of $0.1533 per share payable on May 8, 2025 to shareholders of record as at April 24, 2025.
MONTREAL, April 10, 2025 /CNW/ - (TSX: RCH) "Richelieu has strongly started the 2025 fiscal year with five new acquisitions and an 8.6% increase in sales. This result is all the more appreciable given that the first quarter is historically the weakest period of the year and the renovation market conditions remained relatively stagnant during the period. Our market development initiatives, combined with contributions from acquisitions, the diversification of our market segments, and our added value of our service offering, contributed to this performance. We made significant progress in the manufacturers' market, where sales grew by 9.9%, including 5.1% internal growth, reaching $385.1 million. In the hardware retailers and renovation superstores market, sales remained stable compared to Q1 2024, at $56.6 million. We are currently making significant investments to install new in-store displays and add new product lines in order to boost sales to retail customers. We see these initiatives are starting to bear fruit, with sales growth in this market in Canada."
"I am also pleased with of our recent acquisitions completed since the beginning of the year: The acquisition of Mill Supply, which operates two centres in the Maritime provinces—one in Dartmouth, Nova Scotia, and the other in Charlottetown, Prince Edward Island. This acquisition strengthens our presence in this market and complements our two existing centres in Dartmouth. In fact, it had long been one of our priorities. The acquisition of Darant Distributing allows us to enter the strategic Colorado market. Midwest Specialty Products reinforces our presence in the Minneapolis area, where we are already established, while also adding product lines such as quartz and other decorative surfaces. Modulex Partition, a distributor of Division 10 products, enables us to expand our presence in these product categories in the strategic markets of New Jersey and the Greater New York area. Finally, the acquisition of Rhoads & O'Hara Architectural, a specialist in exclusive architectural panels, working closely with architects, designers, and high-end commercial woodworking."
"Despite the headwinds expected from the tariffs imposed by the US government, Richelieu is well-positioned to navigate these changes, with less than 20% of its products imported from China to the U.S. where alternative products are already sourced from other countries," mentioned Mr. Richard Lord, President and Chief Executive Officer.
EXPANSION: ACQUISITIONS AND CONSOLIDATION OF CENTRES
During the first quarter, Richelieu completed the following acquisitions:
Mill Supply, on December 1, 2024, in Dartmouth, Nova Scotia and Charlottetown, Prince Edward Island;
Darant Distributing, on January 6, 2025, in Denver, Colorado;
Midwest Specialty Products, on January 13, 2025, in Minneapolis, Minnesota; and
Modulex Partition on February 4th, in Hillside, New Jersey.
Subsequent to the first quarter, on April 1st, 2025, Richelieu completed the acquisition of Rhoads & O'Hara Architectural Products, a distributor of architectural panels and related products, in Vineland, New Jersey.
These new acquisitions not only add approximately $50 million in annual sales, but also enhance the Corporation's presence in strategic markets, diversify its product offering, and create new synergies.
In addition, during the quarter, to meet the needs of future growth and continue to deliver top-tier customer service, the Corporation completed its project to consolidate two distribution centres in the Vancouver area into a single 140,000 sq. ft. facility serving the manufacturers' market.
RESULTS FOR THE FIRST QUARTER ENDED FEBRUARY 28, 2025
For the first quarter ended February 28, 2025, consolidated sales amounted to $441.7M, compared to $406.9M for the first quarter of 2024, an increase of $34.8M, or 8.6%, driven equally by internal growth and acquisitions. In currency comparable to that of the first quarter of 2024, the increase in consolidated sales would have been 5.6% for the quarter ended February 28, 2025.
The following table provides an overview of Richelieu's sales in its two main markets for the quarters ended February 28, 2025 and February 29 2024 :
https://www.benzinga.com/pressreleases/25/04/n44738753/8-6-sales-increase-in-the-first-quarter-five-acquisitions-since-the-beginning-of-the-2025-fiscal-y
