Solid growth in Q3 - Sales reached $1.042 billion 5 acquisitions closed since the beginning of fiscal 2021 for potential sales of $75 million annually
- For the third quarter ended August 31, 2021, sales totalled $373.3 million, up 20.0%, of which 14.1% was internal growth and 5.9% came from acquisitions. In Canada and the United States, the increases were 21.3% and 26.7% (US$), respectively. For the first nine months of the financial year, sales amounted to $1.042 billion, up 28.9%.
- Net earnings attributable to shareholders stood at $38.7 million, or $0.69 per diluted share, up 38.0%. For the first nine months, it reached $1.72 per diluted share, up 67.0%.
- Closing of five acquisitions, since the beginning of the financial year, including two in the third quarter and two subsequent to the end of the quarter. Opening of two distribution centers in the United States, including one in the third quarter.
- Sound and solid financial position with cash of $66.7 million, total debt of $8.8 million, working capital of $416.9 million for a ratio of 3.3:1 and return on average equity of 21.2%.
MONTREAL, Oct. 7, 2021 /CNW Telbec/ - "Richelieu (TSX: RCH) has delivered another strong quarterly performance. Growth in the third quarter contributed to increase sales for the first nine months to over $1 billion and further strengthen the financial position. We continued to focus on supporting our customers by providing value-added multi-channel service and an incomparable range of products through our network of "one-stop-shop" centers - as well as online at richelieu.com, and this despite the existing supply chain challenges. The manufacturers' market benefited from increased demand in the renovation market, achieving sales up 32.5% in Canada and 36.7% (US$) in the United States. The retail market declined by 14.8% in Canada and 21.6% (US$) in the United States - thus returning to a pre-pandemic business volume," commented Richard Lord, President and Chief Executive Officer of Richelieu.
"Since the beginning of the year, we have pursued an active expansion strategy with the closing of five acquisitions in North America, for potential sales of $75 million on an annual basis, and opened two additional distribution centers in the United States. Following the acquisitions completed in the third quarter - Uscan Industrial Fasteners Ltd. and 75% of Inter-Co Inc. - we closed two additional acquisitions after the end of the quarter: Cook Fasteners Inc. a distributor specializing in screws and fasteners for the manufacturers' market, with a distribution center in Mississauga, Ontario, and Industrial Plywood a distributor of panels and related products in Pennsylvania. In addition, after opening our fifth center in New York State in the first quarter, we opened a specialty hardware distribution center in Reading, Pennsylvania in the third quarter. Our network now includes 97 centers in North America. We are confident that we will end 2021 with good progress in our results, maintaining our short- and long-term value-creating strategies," added Mr. Richard Lord.