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Highlights
- Q4 sales increase 5.0%, driven by strong performance in Canada and the U.S. manufacturers' market.
- Fiscal year 2024 net earnings of $85.8 million, or $1.53 per diluted share.
- 7 acquisitions completed, contributing $100 million in additional annual sales.
Richelieu Hardware Ltd. (TSX:RCH) reported results for the fourth quarter and fiscal year ended November 30, 2024. Despite facing challenges in the renovation market, Richelieu achieved impressive sales growth and maintained a solid financial position.
Q4 and Fiscal Year 2024 Financial Performance
For the fourth quarter, Richelieu posted sales of $476.2 million, a 5.0% increase compared to the same period in 2023. The growth was driven by robust performance in the manufacturers' market across both Canada and the United States, where sales increased 7.2% to $421.6 million. Sales to the retailer and renovation superstores market were slightly down by 9.7%.
Net earnings for Q4 reached $24.4 million, or $0.44 per diluted share, reflecting solid profitability despite the pressure on margins. The Company also reported EBITDA of $54.3 million, yielding an EBITDA margin of 11.4%.
For the full fiscal year 2024, Richelieu generated $1.8 billion in sales, an increase of 2.5% compared to the previous year. Net earnings attributable to shareholders for the year totaled $85.8 million, or $1.53 per diluted share, and EBITDA reached $201.4 million, representing an EBITDA margin of 11.0%. Richelieu also reported adjusted cash flows from operating activities of $165.7 million.
As of November 30, 2024, the Company maintained a strong financial position with working capital of $612.9 million (a ratio of 3.1:1).
Strategic Acquisitions and Growth
Richelieu completed four acquisitions during fiscal year 2024, including Panexel in Quebec in the fourth quarter, and three additional acquisitions post-November 30, 2024. These included Olympic Forest, Mill Supply in Canada, and Rapid Start, Allegheny Plywood, Darant Distributing, and Midwest Specialty Products in the U.S. The acquisitions are expected to contribute approximately $100 million in additional annual sales.
Dividend Increase and Management Changes
Richelieu also announced a 2.2% increase in its quarterly dividend, raising it to $0.1533 per share for the first quarter of 2025. This move underscores the Company’s strong cash flow and commitment to delivering shareholder value.
In addition, Richelieu’s President and CEO, Richard Lord, announced that Antoine Auclair, the Company’s Chief Financial Officer since 2011, will now also assume the role of Chief Operating Officer, adding to his current responsibilities.
Looking Ahead
"We are optimistic about the upcoming year, with the expectation that the renovation market will regain momentum in 2025. Our strategy remains focused on capitalizing on the growth opportunities arising from the housing shortage in North America. We will continue to leverage our innovative business model, strong customer relationships, and recent acquisitions to further solidify our leadership position across North America," said Richard Lord.
