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Highlights
- GCL’s Q3 2025 sales rose 31.1% to CAD 212.5m from CAD 162.0m in Q3 2024.
- Net loss from continuing operations reached CAD 74.4m, including a CAD 75.0m goodwill impairment.
- Kelly Shipway appointed President and CEO, succeeding Louis Frenette.
Colabor Group Inc. (TSX:GCL) announced its financial results for the third quarter ending September 6, 2025. Sales rose 31.1% to CAD 212.5 million, up from CAD 162.0 million in the same period last year. The increase was primarily driven by the contribution from the recent acquisition of Alimplus, which added CAD 53.3 million in revenue, along with organic sales growth and inflationary effects.
Adjusted EBITDA decreased to CAD 5.8 million, or 2.7% of sales, compared with CAD 9.5 million, or 5.9% of sales, a year earlier. The decline was attributed to lower gross margins, integration costs from Alimplus, and the impact of a cybersecurity incident identified in July 2025.
The company reported a net loss from continuing operations of CAD 74.4 million, compared with net earnings of CAD 1.2 million in Q3 2024. The loss included an impairment charge of CAD 75.0 million allocated to goodwill.
Operating cash flow turned negative at CAD (7.7) million, versus CAD 9.9 million in Q3 2024, reflecting lower earnings and increased working capital needs. Net debt rose to CAD 112.1 million as of September 6, 2025, compared to CAD 47.8 million at year-end 2024.
Forbearance Agreements and Financial Position
On September 5, 2025, Colabor entered into forbearance agreements with its lenders, later extended to January 30, 2026. The agreements temporarily prevent lenders from exercising rights related to anticipated defaults. They include conditions such as minimum liquidity requirements of CAD 1.0 million and a planned equity raise of at least CAD 15.0 million by December 15, 2025.
Colabor is also reviewing strategic alternatives to stabilise its capital structure and reduce debt levels. The company stated that there is no assurance that long-term refinancing or alternative arrangements will be achieved.
Leadership Transition
The company announced the appointment of Kelly Shipway as President and Chief Executive Officer, effective immediately, following the departure of Louis Frenette. Ms. Shipway, previously Chief Operating Officer, has over 25 years of experience in operations, business strategy, and integrations in the agri-food sector.
Integration of Alimplus Activities
Colabor has begun integrating Alimplus’ operations into its Saint-Bruno and Lévis facilities, with site closures planned in Drummondville by November 2025 and Anjou by January 2026. The company expects the integration to deliver operational efficiencies and cost synergies through 2026.
