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BOUCHERVILLE, Quebec , October 19, 2023 (press release) –

Colabor Group Inc. (TSX: GCL) (“Colabor” or the “Company”) reports its results for the third quarter ended September 9, 2023.

Third Quarter 2023 Financial Highlights:

* Sales increased by 13.1% to $164.7 million, compared to $145.7 million for the corresponding period of 2022;

* Net earnings from continuing operations were $3.5 million compared to $2.8 million for the corresponding period of 2022; and

* Adjusted EBITDA(1) increased by 24.1% to $11.0 million from $8.9 million for the corresponding period of 2022 with an adjusted EBITDA(1) margin to 6.7% of sales compared to 6.1% of sales during the corresponding period of 2022.

Table of Third Quarter 2023 Financial Highlights:

Disclaimer: Table can be viewed at:

“I am very pleased with our third quarter results. After more than two years of dedicated efforts to improve our business and profitability, I can once again reaffirm that our strategic investments in organic and non-organic growth are paying off. Our third quarter results show revenue growth of 13.1%, while our adjusted EBITDA(1) increased by 24.1%. Sustained demand for our differentiated offerings combined with strategic management of our product mix, has allowed us to offset the increase inlabor costs, inputs and investments in our growth,” said Mr. Frenette, President and Chief Executive Officer of Colabor.

“During the quarter, we also invested $9.1 million in fixed assets, mainly for the preparation of our new site located in Saint- Bruno-de-Montarville, while maintaining our debt ratio,” added Pierre Blanchette, Senior Vice-President and Chief Financial Officer.

Results for the Third Quarter of 2023

Consolidated sales for the third quarter were $164.7 million, an increase of 13.1% compared to $145.7 million during the corresponding quarter of 2022. Sales for the Distribution segment increased by 20.4%, as a result of volume increase, part of which is related to the conclusion of two supply contracts with chains, and the impact of inflation. Wholesale segment sales decline of 8.6% is mainly explained by a supply optimization project between our warehouses reducing our internal sales to the Distribution segment, as well as an external volume decrease, mitigated by the impact of inflation.

Adjusted EBITDA[1] from continuing activities was $11.0 million or 6.7% of sales from continuing activities compared to $8.9 million or 6.1% during 2022. This change is mainly the result of increased sales and gross margin from a better mix of products and customers.

Net earnings from continuing operations and net earnings for the third quarter were $3.5 million, up from $2.8 million for the corresponding quarter of the previous year, resulting essentially from an increased adjusted EBITDA(1), mitigated by higher depreciation and amortization, financial and income taxes expenses.

Results for the 36-week period of 2023

Consolidated sales for the 36-week period were $462.8 million compared to $380.8 million in the corresponding period of 2022. The Distribution segment grew by 28.7% and the Wholesale segment grew by 3.4%. Adjusted EBITDA[1] from continuing operations was $25.9 million or 5.6% of sales from continuing operations compared to $19.2 million or 5.0% in 2022. Net earnings from continuing operations were $5.7 million, up from $2.9 million in the 36-week period of last year.

Cash Flow and Financial Position

Cash flows from operating activities were $8.0 million for the third quarter compared to $8.8 million for the corresponding period of 2022. This decrease is mainly due to higher utilization of working capital[4], mitigated by higher adjusted EBITDA[1]. The higher utilization of working capital[4] is explained by higher supplier payments in 2023 related to higher inventories. Cash flows from operating activities were $20.0 million for the 36-week period of 2023 and for the corresponding period of 2022. The higher adjusted EBITDA[1] is mitigated by a higher utilization of working capital[4]. The higher utilization of working capital[4] is explained by the receipt of the non-recurring gain in 2022 of $4.0 million, which was receivable as at December 25, 2021, and the increase in inventories related to sales growth.

As at September 9, 2023, the Company's working capital[4] was $52.2 million, up from $48.8 million at the end of the fiscal 2022. This increase is related to sales growth during 2023.

As at September 9, 2023, the Company's net debt[2] was up to $53.4 million, compared to $47.8 million at the end of the fiscal year 2022. This increase is a result of the additional use of the credit facility for $6.5 million in connection with the equipment purchases related to our new warehouse.


“We are now entering the second phase of our 5-year strategic plan in a very good position. The preparation of our new site located at Saint-Bruno-de-Montarville is progressing at high speed and we are committed to ensuring a smooth transition of our operations. As planned, the relocation will start in the fourth quarter of 2023. This highly strategic project will allow us to efficiently reach nearly 90% of the Quebec market and to begin our distribution activities in Western Quebec in the first half of 2024. I am very excited about the potential of this new facility, which will provide a stimulating and eco-responsible work environment for our employees and more effectively serve our growing clientele in the west of the province,” commented Louis Frenette.

Disclaimer: The full PDF release can be found at:

Disclaimer: Footnotes can be found at:

Source: Colabor Group Inc.

[Category: Beverage & Tobacco, Soft Drinks, Financial Results]

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