The food distributor Colabor is in a better position with the recovery of the restaurant industry which propels its sales. The Boucherville company also manages to transfer the costs associated with food inflation to its customers.
Posted at 11:38 a.m.
Updated at 4:36 p.m.
The company posted a 27.4% increase in sales to 138 million in the second quarter ended June 11. Management attributed the increase to the effect of the sanitary easing in restaurants, inflation and two acquisitions made in April.
The improvement is welcome for a company that has been trying to revive its activities for several years. Arrived at the head of the company at the end of 2019, Louis Frenette, President and Chief Executive Officer, saw his intentions upset by the pandemic which led to the closure of several of his clients in the restoration.
“It’s a fifth consecutive quarter where revenues are increasing,” said the leader in a conference call to discuss the results on Friday. “It’s been one of our best quarters in a long time. »
Colabor managed to hold its own against a backdrop of soaring food inflation. In June, the consumer price index (CPI) increased by 8.8% for the “food” segment.
During the conference, the chief financial officer, Pierre Blanchette, mentioned that the company had transferred a price increase equivalent to 11% due to inflation. “Inflation has a marginal impact [sur les résultats] when you pass inflation [dans vos prix]. »
Excluding wage subsidies of $1.2 million in 2021, the adjusted margin before interest, taxes, depreciation and amortization increased from 5% in 2021 to 5.8% in 2022.
This increase is not so much attributable to inflation, which had a “marginal” impact on margins, as to a greater presence of restaurants, which are benefiting from the easing of sanitary measures, explained the head of the finance.
Questioned on the subject, the big boss of Colabor said, for his part, that generalized inflation and the rise in interest rates had not led to “a destruction of demand” for the moment. “Not really,” replies Mr. Frenette. The activities show constant growth in all segments. »
The company recorded a net profit of 1.7 million, compared to 1.6 million, still in the second quarter. This modest increase is explained by accounting items, ie costs that are “not related to current operations”, tax charges and depreciation, reports management.
Since the beginning of the year, Colabor has repaid 2.3 million of its debt, which has gone from 48.4 million to 46.1 million.
After a jump in the action of Colabor of more than 10% in the morning, the enthusiasm of investors was tempered at the end of the session, Friday. The stock added 1 cent, or 1.28%, to 79 cents at the close of trading on the Toronto Stock Exchange.