Q2 2024 Richelieu Hardware Ltd Earnings Call Transcript
Key Points
- Richelieu Hardware Ltd (RHUHF) achieved a 2% increase in second-quarter sales, driven by a 2.7% positive contribution from acquisitions.
- Sales in the U.S. grew by 6.1%, with a notable 8.7% increase in sales to manufacturers.
- The company is working on several projects with retail customers that are expected to generate additional sales in the future.
- Richelieu Hardware Ltd (RHUHF) continues to benefit from a healthy and solid financial position with a working capital of $660 million and almost no debt.
- The company is focusing on the development of expanded and modernized distribution centers in the U.S. and a new Calgary location to support growth.
- Sales to retailers and renovation superstores were down in both Canada and the U.S., with a 10.6% decrease in Canada.
- Second-quarter EBITDA decreased by 12.6%, and the EBITDA margin dropped to 11.2% from 13% last year.
- Net earnings attributable to shareholders fell by 23.7%, primarily due to amortization from new business acquisitions and expansion projects.
- The company experienced a 0.7% internal sales decrease in the second quarter, partially offsetting the positive impact of acquisitions.
- Gross and EBITDA margins were under pressure due to temporary factors, including higher inventory costs and lower selling prices for certain products from Asia.
(spoken in foreign language) Good afternoon, ladies and gentlemen, and welcome to Richelieu Hardware Second Quarter Results Conference Call. At this time, all lines are in a listen only. (Operator Instructions) This call is being recorded on July 11, 2024. (spoken in foreign language)
Merci. Thank you. Good afternoon, ladies and gentlemen, and welcome to this conference call for the second quarter and first half ended May 31st, 2024. With me is Antoine. Okay, our CFO as usual note that some of this issue include forward-looking information, which is which is provided with the usual disclaimer. As reported in our financial filings, we continued to make good advances in the second quarter, thanks, notably to evaluate the valuable contribution of our acquisitions, the strong support, our market development strategy and our value added service. As a result, we achieved an increase in sales over the comparative quarter of 2023, which is appreciable in the current market condition.
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