Richelieu Business Update
“Richelieu started 2020 on a strong note, as shown by the 10.2% increase in sales, 18.9% in EBITDA and 23.5% in diluted net earnings per share. Our innovation and acquisition strategies combined with our market development initiatives, our unique service concept and the depth of our product lines drove growth during the first quarter ended February 29. We are all the more satisfied given that the first three months are historically the weakest period of the fiscal year. In addition, we completed three new acquisitions in North America: two in Canada, Decotec and Mibro, acquired in December 2019, operating mostly in GTA and allowing us to strengthen our activities in markets where we already are and one in the United States, O’Harco, concluded on February 3, 2020, which operates three centres in Nebraska, Iowa and South Dakota, giving us access to these new geographic markets. The three acquisitions represent sales of approximately $60 million on an annual basis and should result in sales synergies across our network, which now totals 82 centres in North America.” commented Richard Lord, President and Chief Executive Officer of Richelieu.
“However, this good first quarter precedes the COVID-19 crisis which has been affecting us since the end of March. In light of these unprecedented events, we reacted swiftly, continuing to provide our customers with the distinctive services they have come to expect, to meet their needs for essential products and services, and to anticipate their expectations, particularly in these highly challenging market conditions. We intend to continue pursuing the proven business strategies that have enabled us to build a large and diversified client base and to effectively support our customers in their development and projects. In order to ensure that all essential activities are conducted safely and effectively in the context of this COVID-19 situation, we will continue to comply with all applicable health and safety guidelines issued by our governments. All appropriate measures will be maintained to ensure the safety of our employees, suppliers, customers, families and visitors. As of today, and although most of our distribution centers remain operational, Richelieu has nonetheless taken a series of flexible measures to protect its financial position in response to the COVID-19 crisis and mitigate its impacts on its employees, including temporary layoffs, teleworking and reductions in Board and management remuneration, salaries and/or hours, as applicable and as appropriate, region by region. We have entered this crisis from a position of strength, with a leading market position and a solid financial position. We believe taking decisive yet flexible actions will help to protect our employees, operations and cash flows over the short-term and gives us the necessary agility to resume our long-term growth as soon as current confinement measures will be lifted” added Richard Lord.
About Richelieu Hardware Ltd.
Richelieu is a leading North American distributor, importer and manufacturer 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, door and window, residential and commercial woodworkers, 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 130,000 different items targeted to a base of more than 90,000 customers who are served by 82 centers in North America – 40 distribution centers in Canada, 40 in the United States and two manufacturing plants in Canada, specifically Cedan Industries Inc. which specializes in the manufacturing of a wide variety of veneer sheets and edgebanding products and Menuiserie des Pins Ltée which manufactures components for the window and door industry and a broad selection of decorative mouldings.
Antoine Auclair – Vice President & CFO – (540) 336-4144
Source: Richelieu Hardware Ltd.