SUSTAINED GROWTH OF 5.0% FOR RICHELIEU IN THE FIRST QUARTER OF 2026
SUSTAINED GROWTH OF 5.0% FOR RICHELIEU IN THE FIRST QUARTER OF 2026 |
| [09-April-2026] |
HIGHLIGHTS OF THE FIRST QUARTER ENDED FEBRUARY 28, 2026
MONTREAL, April 9, 2026 /CNW/ - (TSX: RCH) "Our growth trajectory remained strong in the first quarter, with results trending upward, including a 5.0% increase in sales, reflecting growth of 3.4% in Canada and 11.3% (US) in the United States, including the contribution of acquisitions, which accounted for 3.0% of sales growth. Excluding the unfavourable impact of the appreciation of the Canadian dollar against the US dollar, sales growth would have been 7.0%. Our results are all the more noteworthy given that the first three months represent the weakest period of the financial year. Our strategies focused on innovation, acquisitions and diversification of market segments, combined with the distinctive quality of our service, have effectively offset certain sector slowdowns," said Richard Lord, President and Chief Executive Officer. CONTINUED EXPANSION: 1 ACQUISITION IN THE U.S. AND 2 LETTERS OF INTENT IN CANADA "At the beginning of the quarter, as previously announced, we completed the acquisition of three distribution centres from McKillican American, following a series of nine acquisitions in 2025. Located in Oregon and Washington State, this acquisition expands and diversifies our offering and customer base in regions where we were already present, while also allowing us to integrate new talent into the organization. It also represents the 100th acquisition in Richelieu's history. In addition, we have signed two agreements in principle for acquisitions in Canada. In 2026, we will continue to seize and create opportunities, as we are ideally positioned to meet demand in specialized markets, as well as the demand for new housing and renovation projects. The fragmented market in which we operate continues to present acquisition opportunities that we will pursue when they meet our criteria. I am also proud to highlight that Richelieu won the two most prestigious awards as part of the Best of KBIS 2026 – Kitchen & Bath Industry Show (KBIS) held recently in Orlando, Florida. These honours recognize Richelieu's leadership in product excellence, particularly in design, innovation and functionality " added Richard Lord. RESULTS FOR THE FIRST QUARTER ENDED FEBRUARY 28, 2026 The following table provides an overview of Richelieu's sales in its two main markets for the quarters ended February 28, 2026 and 2025 :
For the first quarter ended February 28, 2026, consolidated sales amounted to $463.6M, compared to $441.7M for the first quarter of 2025, an increase of $21.9M, or 5.0%, including 3.0% from the positive contribution of acquisitions and 2.0% from internal growth. In currency comparable to that of the first quarter of 2025, the increase in consolidated sales would have been 7.0% for the quarter ended February 28, 2026. Earnings before income taxes, interest, and amortization (EBITDA) EBITDA for 2026 first quarter was $43.2M, up $0.8M or 1.9% from the corresponding quarter of 2025, mainly as a result of higher sales. The EBITDA margin was 9.3%, compared with 9.6% for the corresponding quarter of 2025. This decline is mainly due to the unfavourable impact of a $1.6M foreign exchange effect. Amortization and net financial costs Amortization expense for the first quarter of 2026 amounted to $19.5M, up $0.8M over the corresponding period of 2025, mainly resulting from the growth of right-of-use assets, related to lease renewals and business acquisitions completed over the past 12 months. Net financial costs were $3.1M for the three months of 2026 compared to $3.7M last year, down $0.6M mainly due to a reduced use of credit lines. Net earnings Net earnings for the first quarter were $15.1M, an increase of 2.7% from the prior year. Including non-controlling interests, net earnings attributable to the Corporation's shareholders were $14.4M, an increase of 3.6% from the first quarter of 2025. Net earnings per share were $0.26 basic and diluted, compared to $0.25 basic and diluted for the first quarter of 2025, an increase of 4.0%. Operating activities First quarter cash flow from operating activities, before net change in non-cash working capital balances, was $37.9M or $0.69 per diluted share compared to $37.3M or $0.67 per diluted share for the first quarter of 2025. This 3.0% increase primarily reflects the increase in net earnings. The net change in non-cash working capital items used cash flows of $20.8M, mainly reflecting the increase in inventories while other items represented a cash inflow of $1.4M. As a result, operating activities provided a cash inflow of $17.1M, compared to a cash inflow of $3.7M in the first quarter of 2025. FINANCIAL POSITION As at February 28, 2026, the net cash was $1.6M, compared to net cash of $22.6M as at November 30, 2025. The Corporation had working capital of $625.7M with a ratio of 3.2:1, compared to $624.0M (ratio of 3.3:1) as at November 30, 2025. Total assets were $1.45B as at February 28, 2026, compared to $1.44B as at November 30, 2025, an increase of 0.5%. Current assets increased by 1.5% or $13.2M from November 30, 2025. Non-current assets were down by 1.0%. SHARE CAPITAL As at February 28, 2026, the Corporation's share capital consisted of 54,988,293 common shares [54,911,836 shares as at November 30, 2025]. For the three-month period ended February 28, 2026, the weighted average number of diluted shares outstanding was 55,177,600 [55,486,850 in 2025]. DIVIDENDS On April 9, 2026, the Board of Directors approved the payment of a quarterly dividend of $0.1566 per share to shareholders of record as at April 23, 2026, payable on May 7, 2026. The declared dividend is designated as an eligible dividend within the meaning of the Income Tax Act (Canada). MAIN TRADEMARKS
PROFILE AS AT FEBRUARY 28, 2026 Richelieu is a leading North American importer, manufacturer and distributor of specialty hardware and complementary products. Its products are targeted to an extensive customer base of kitchen and bathroom cabinet, storage and closet, home furnishing and office furniture manufacturers, residential and commercial woodworkers, door and window, and hardware retailers including renovation superstores. Richelieu offers customers a broad mix of high-end products sourced from manufacturers worldwide. Its product selection consists of over 145,000 different items targeted to a base of more than 120,000 customers who are served by 120 centres in North America – 51 distribution centres in Canada, 66 in the United States and three manufacturing plants in Canada, specifically, Les Industries Cedan Inc., Menuiserie des Pins Ltée and USIMM UNIGRAV Inc., which manufacture a variety of veneer sheets and edge banding products, a broad selection of decorative mouldings and components for the window and door industry as well as custom products, including a 3D scanning centre. Notes to readers — Richelieu uses earnings before interest, income taxes and amortization ("EBITDA") because this measure enables management to assess the Corporation's operational performance. This measure is a financial indicator of a corporation's ability to service its debt. However, EBITDA should not be considered by an investor as an alternative to operating income, net earnings, cash flows or as a measure of liquidity. Because EBITDA is not a standardized measurement as prescribed by IFRS, it may not be comparable to the EBITDA of other companies. Richelieu also uses adjusted cash flows from operating activities, which are based on net earnings plus the amortization of property, plant and equipment, intangible assets and right-of-use assets, deferred tax expense (or recovery), share-based compensation expense and financial costs. These additional measures do not account for net change in non-cash working capital items to exclude seasonality effects and are used by management in its assessments of cash flows from long-term operations. Therefore, adjusted cash flows from operating activities may not be comparable to those of other companies. Certain statements set forth in this report (generally identified by terms such as "may", "could", "might", "intend", "expect", "believe", "estimate" or comparable variants) constitute forward-looking statements which, by their very nature, remain subject to other risks and uncertainties as set forth in the Corporation's annual and quarterly reports. Although management considers these assumptions and expectations reasonable based on the information available at the time they are provided, such assumptions and expectations could prove inaccurate and actual results could differ materially. Richelieu is under no obligation to update or revise any forward-looking statements made herein to account for future events or circumstances, except as required by applicable legislation. The unaudited interim consolidated financial statements, accompanying notes and interim MD&A for the first quarter of 2026 will be available on SEDAR+ at www.sedarplus.com and on the Corporation's website at www.richelieu.com.
SOURCE Richelieu Hardware Ltd. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: Toronto:RCH |
