Richelieu: 8.6% Sales Increase in the First Quarter, Five Acquisitions Since the Beginning of the 2025 Fiscal Year

“Richelieu has strongly started the 2025 fiscal year with five new acquisitions and an 8.6% increase in sales. This result is all the more appreciable given that the first quarter is historically the weakest period of the year and the renovation market conditions remained relatively stagnant during the period. Our market development initiatives, combined with contributions from acquisitions, the diversification of our market segments, and our added value of our service offering, contributed to this performance. We made significant progress in the manufacturers’ market, where sales grew by 9.9%, including 5.1% internal growth, reaching $385.1 million. In the hardware retailers and renovation superstores market, sales remained stable compared to Q1 2024, at $56.6 million. We are currently making significant investments to install new in-store displays and add new product lines in order to boost sales to retail customers. We see these initiatives are starting to bear fruit, with sales growth in this market in Canada.”

“I am also pleased with of our recent acquisitions completed since the beginning of the year: The acquisition of Mill Supply, which operates two centres in the Maritime provinces—one in Dartmouth, Nova Scotia, and the other in Charlottetown, Prince Edward Island. This acquisition strengthens our presence in this market and complements our two existing centres in Dartmouth. In fact, it had long been one of our priorities. The acquisition of Darant Distributing allows us to enter the strategic Colorado market. Midwest Specialty Products reinforces our presence in the Minneapolis area, where we are already established, while also adding product lines such as quartz and other decorative surfaces. Modulex Partition, a distributor of Division 10 products, enables us to expand our presence in these product categories in the strategic markets of New Jersey and the Greater New York area. Finally, the acquisition of Rhoads & O’Hara Architectural, a specialist in exclusive architectural panels, working closely with architects, designers, and high-end commercial woodworking.”

“Despite the headwinds expected from the tariffs imposed by the US government, Richelieu is well positioned to navigate these changes, with less than 20% of its products imported from China to the U.S. where alternative products are already sourced from other countries,” mentioned Mr. Richard Lord, President and Chief Executive Officer.

Highlights of the First Quarter Ended February 28, 2025

• Sales of $441.7 million, up by 8.6%, driven equally by internal growth and acquisitions.
• In Canada, sales reached $241.6 million, up 4.1%.
• In the United States, sales totalled US$139.8 million, up 7.6%, representing 45% of total sales.
• EBITDA of $42.4 million, up 5.0% – EBITDA margin of 9.6%.
• Net income attributable to shareholders of $13.9 million, or $0.25 per diluted share.
• Solid financial position as of February 28, 2025 – working capital of $613.2 million – ratio of 2.9:1.
• Expansion: five new acquisitions since the beginning of the fiscal year, including one after the end of the first quarter, representing approximately $50 million in annual sales.
• Quarterly dividend of $0.1533 per share payable on May 8, 2025 to shareholders of record as at April 24, 2025

Expansion: Acquisitions and Consolidation of Centres

During the first quarter, Richelieu completed the following acquisitions:

• Mill Supply, on December 1, 2024, in Dartmouth, Nova Scotia and Charlottetown, Prince Edward Island;
• Darant Distributing, on January 6, 2025, in Denver, Colorado;
• Midwest Specialty Products, on January 13, 2025, in Minneapolis, Minnesota; and
• Modulex Partition on February 4th, in Hillside, New Jersey.
• Subsequent to the first quarter, on April 1st, 2025, Richelieu completed the acquisition of Rhoads & O’Hara Architectural Products, a distributor of architectural panels and related products, in Vineland, New Jersey.

These new acquisitions not only add approximately $50 million in annual sales, but also enhance the Corporation’s presence in strategic markets, diversify its product offering, and create new synergies.

In addition, during the quarter, to meet the needs of future growth and continue to deliver top-tier customer service, the Corporation completed its project to consolidate two distribution centres in the Vancouver area into a single 140,000 sq. ft. facility serving the manufacturers’ market.

Results for the First Quarter Ended February 28, 2025

For the first quarter ended February 28, 2025, consolidated sales amounted to $441.7M, compared to $406.9M for the first quarter of 2024, an increase of $34.8M, or 8.6%, driven equally by internal growth and acquisitions. In currency comparable to that of the first quarter of 2024, the increase in consolidated sales would have been 5.6% for the quarter ended February 28, 2025.

Earnings before income taxes, interest and amortization (EBITDA) for 2025 first quarter was $42.4M, up $2.0M or 5.0% from the corresponding quarter of 2024, mainly due to lower margins from our recent business acquisitions and marketing costs for new product
lines with our retailer customers.

Net earnings for the first quarter of 2025 were $14.7M, a decrease 5.2% from the prior year. This decrease is mainly due to the $2.0M increase in amortization expense, resulting from the increase in property, plant, and equipment, as well as right-of-use assets in connection with the expansion projects and business acquisitions made during the previous fiscal year and the first quarter of 2025. Additionally, net financial expenses increased by $1.2M, primarily due to the rise in utilized credit lines. Including non controlling interests, net earnings attributable to the Corporation’s shareholders were $13.9M, a decrease of 8.6% from first quarter of 2024. Net earnings per share were $0.25 basic and diluted, compared to $0.27 basic and diluted for Q1 2024, a decrease 7.4%.

Financial Position

Total assets were $1.48B as at February 28, 2025, compared to $1.39B as at November 30, 2024, an increase of 6.2%. Current assets increased by 4.8% or $43.5M from November 30, 2024. Non-current assets increased by 8.6% mainly due to the addition of right-of-use assets.

As at February 28, 2025, the bank overdraft, net of cash and cash equivalents, was $56.0M, compared to net bank overdraft of $12.3M as at November 30, 2024. The Corporation had working capital of $613.2M with a ratio of 2.9:1, compared to $612.9M (ratio of 3.1:1) as at November 30, 2024.

Share Capital

As at February 28, 2025, the Corporation’s share capital consisted of 55,299,103 common shares [55,218,678 shares as at November 30, 2024]. For the three-month period ended February 28, 2025, the weighted average number of diluted shares outstanding was 55,487,500 [56,530,470 in 2024].

Dividends

On April 10, 2025, the Board of Directors approved the payment of a quarterly dividend of $0.1533 per share to shareholders of record as at April 24, 2025, payable on May 8, 2025. The declared dividend is designated as an eligible dividend within the meaning of the Income Tax Act (Canada).

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About Richelieu

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 its 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 110,000 customers who are served by 113 centres in North America – 50 distribution centres in Canada, 60 in the United States and 3 manufacturing plants in Canada, specifically, Les Industries Cedan Inc., Menuiserie des Pins Ltée and USIMM/UNIGRAV, 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.

Contact:

Antoine Auclair – Vice-President and Chief Financial Officer – (514) 832-4010

Source: Richelieu Hardware Ltd.