In This Article:
-
Sales Growth: Increased by 3.2% in Q4 2024.
-
Distribution Sales: Grew by 5.6% in Q4 2024.
-
Wholesale Revenue: Decreased by 3.8% in Q4 2024.
-
Adjusted EBITDA Margin: 5.6% of sales in Q4 2024, down from 5.9% in Q4 2023.
-
Cash Flows from Operations: Increased by 18.6% to $10.6 million in Q4 2024.
-
Leverage Ratio: Reduced to 2.4 times adjusted EBITDA from 2.7 times at the end of 2023.
-
Net Earnings from Continuing Operations: $0.5 million or $0.01 per share in Q4 2024.
-
Net Debt: Decreased to $47.8 million from $61.5 million at the end of 2023.
-
Adjusted EBITDA for Fiscal 2024: $35.4 million, down by $2.2 million from the previous year.
-
Annual CapEx for Fiscal 2024: Totaled $3.1 million.
-
Available Borrowing Capacity: $29.5 million before the Alimplus acquisition financing.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Colabor Group Inc (COLFF) achieved a 3.2% sales growth in the fourth quarter, driven by a 5.6% increase in distribution sales.
-
The company increased its cash flows from operations by 18.6% to $10.6 million, demonstrating efficient management of working capital.
-
Colabor Group Inc (COLFF) ended the year with a strong balance sheet, reducing its leverage ratio from 2.7 to 2.4 times adjusted EBITDA.
-
The acquisition of Alimplus is expected to consolidate Colabor's position as the largest food distributor in western Quebec, increasing market share from 11% to 16%.
-
The company successfully implemented a diversification strategy that allowed it to gain market share despite challenges in the restaurant industry.
Negative Points
-
Adjusted EBITDA margins decreased to 5.6% in the fourth quarter, down from 5.9% in the same quarter last year, due to weakness in the restaurant channel.
-
Fiscal 2024 saw a decline in adjusted EBITDA by $2.2 million, with margins dropping from 5.6% to 5.4% due to lower sales volume.
-
Wholesale revenues were down by 3.8%, reflecting ongoing challenges in the restaurant and retail channels.
-
The company faced pressure from a challenging macroeconomic environment, impacting its wholesale business.
-
Despite strategic acquisitions, the company still faces headwinds in the restaurant industry, affecting overall sales volume.
Q & A Highlights
Q: The distribution business seems to be benefiting from volume wins. Were these wins from prior periods or new wins during Q4? What kind of clients or channels are involved? A: The growth is a mix of factors, including new customers acquired in the last quarter, mainly in the independent restaurant business. Inflation was at 1.9%, and there was a contribution from a Q1 acquisition. However, retail was not as strong as before. - Louis Frenette, President, Chief Executive Officer