BOUCHERVILLE, Quebec
,
July 31, 2023
(press release)
–
Colabor Group Inc. (TSX: GCL) (“Colabor” or the “Company”) reports its results for the second quarter ended June 17, 2023. Second Quarter 2023 Financial Highlights: Sales increased by 19.0% to $164.2 million, compared to $138.0 million for the corresponding period of 2022; * Net earnings from continuing operations were $2.3 million compared to $1.7 million for the corresponding period of 2022; * Adjusted EBITDA(1) increased by 16.1% to $9.3 million from $8.0 million for the corresponding period of 2022 with an adjusted EBITDA(1) margin to 5.7% of sales compared to 5.8% of sales during the corresponding period of 2022; and * Cash flows from operating activities increased to $11.3 million compared to $(1.2) million during the corresponding period of 2022. Table of Second Quarter 2023 Financial Highlights: Financial highlights The Table can be viewed at: (https://colabor.com/en/2023/07/25/colabor-group-reports-results-for-the-second-quarter-2023/) “I am very pleased with our second quarter results. After more than two years of dedicated efforts to improve our business and profitability, I can once again reaffirm that we are on the right track. Our second quarter results show revenue growth of 19.0%, while our adjusted EBITDA(1) increased by 16.1%. Growing demand for our differentiated offerings combined with strategic management of our product mix, has allowed us to offset the increase in labor costs, inputs and investments in our growth,” said Mr. Frenette, President and Chief Executive Officer of Colabor. “These results show that our strategic investments in organic and non-organic growth are paying off,” added Louis Frenette. Results for the Second Quarter of 2023 Consolidated sales for the second quarter were $164.2 million, an increase of 19.0% compared to $138.0 million during the corresponding quarter of 2022. Sales for the Distribution segment increased by 25.6%, as a result of volume increase, part of which is related to the conclusion of two supply contracts with independent chains, the impact of inflation and the acquisition of assets in the Laurentians and Outaouais regions. Wholesale segment sales increased by 1.7%, mainly as a result of the impact of inflation Adjusted EBITDA(1) from continuing activities was $9.3 million or 5.7% of sales from continuing activities compared to $8.0 million or 5.8% during 2022. This change is mainly as a result of increase in sales. Net earnings from continuing operations were $2.3 million, up from $1.7 million for the corresponding quarter of the previous year, resulting essentially from an increase of the adjusted EBITDA(1), combined with a decrease in costs not related to current operations, mitigated by higher depreciation and amortization, financial and income taxes expenses. Net earnings for the second quarter were $2.3 million, compared to $1.7 million for the corresponding period of 2022 and are primarily explained by the facts described above. Results for the 24-week period of 2023 Consolidated sales for the 24-week period amounted to $298.1 million compared to $235.2 million in the corresponding period of 2022, an increase of 26.8%, of which 33.2% from the Distribution segment and 10.7% from the Wholesale segment. Adjusted EBITDA(1) from continuing operations reached $14.9 million or 5.0% of sales from continuing operations compared to $10.3 million or 4.4% in 2022. Net earnings from continuing operations were $2.2 million, up from $nil million in the 24- week period of last year. Cash Flow and Financial Position Cash flows from operating activities were $11.3 million for the second quarter compared to $(1.2) million for the corresponding period of 2022. This increase is mainly due to lower utilization of working capital(4) and higher adjusted EBITDA(1) . The lower utilization of working capital(4) is explained by a higher collection of receivables in 2023 related to the increase of sales and the timing of inventories purchases and supplier payments. Cash flows from operating activities amounted $12.1 million for the 24- week period of 2023 compared to $11.2 million for the corresponding period of 2022. This increase is mainly due to higher adjusted EBITDA(1) , 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 inventory purchases related to sales growth. As at June 17, 2023, the Company's working capital(4) was $49.5 million, up from $48.8 million at the end of the fiscal 2022. This increase is related to sales growth during 2023. As at June 17, 2023, the Company's net debt(2) was down to $47.3 million, compared to $47.8 million at the end of the fiscal year 2022. This decrease is explained by the increase of cash, mitigated by the additional use of the credit facility for $3.3 million. Outlook “We intend to continue this momentum by prioritizing the acceleration of growth and the continuous improvement of our activities and processes. We are also actively working on the preparation of our new site located at Saint-Bruno-de Montarville, to which the relocation is still scheduled for the end of 2023. This highly strategic project will allow us to efficiently reach nearly 90.0% of the Quebec market. It will also allow us to offer a stimulating work environment for our employees, ecoresponsible and to serve more effectively our growing clientele in the west of the province,” commented Louis Frenette. The full PDF release can be found at: (https://colabor.com/en/2023/07/25/colabor-group-reports-results-for-the-second-quarter-2023/) Source: Colabor Group [Category: Soft Drinks, Beverage & Tobacco, Financial Results] Copyright 2023 Contify.com
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