Acquisitions and Innovation Drive Richelieu’s 2023 Financial Success

Richelieu Recorded Solid Results for the Fourth Quarter of 2023

MONTREAL, Jan. 18, 2024 – Richelieu, a leader in specialty hardware and complementary products, reported strong financial results for the fourth quarter of 2023. Despite a marginal sales decline of 0.8%, the company’s overall performance demonstrates resilience and strategic growth, particularly through significant acquisitions.

Q4 2023 Highlights:

  • Sales: $453.6M, down 0.8%, comparable to Q4 2022.
  • EBITDA: $58.8M, with a 13.0% margin.
  • Net earnings for shareholders: $28.5M, equating to $0.51 per diluted share.
  • Operating cash flows: $72.7M.

2023 Financial Year Overview:

  • Annual sales reached $1.8B.
  • EBITDA stood at $230.4M, with a 12.9% margin.
  • Net earnings for shareholders totaled $111.5M ($1.98 per diluted share).
  • Operating cash flows were robust at $270.7M.
  • A strong financial position with a working capital of $621.8M.

Strategic Acquisitions and Expansion: Richelieu completed six acquisitions in 2023, contributing an additional $152M in annual sales. Two more acquisitions, one in Ontario and one in Ohio, were finalized post-November, expected to add around $18M in annual sales. These acquisitions, along with major expansion projects, are central to Richelieu’s growth strategy.

CEO’s Perspective: Richard Lord, President and CEO, emphasized the company’s ability to maintain solid performance despite market challenges. He noted, “Our performance attests to the strength and expertise of our team, our ability to differentiate ourselves through outstanding customer service, and to make growth-enhancing acquisitions while pursuing innovation for our customers.”

Sales Analysis:

  • Consolidated sales were slightly down by 0.8% year-over-year, attributed to a 1.8% increase from acquisitions and a 2.6% internal decrease.
  • Sales in Canada showed a 2.5% decrease, while U.S. sales in Canadian dollars increased by 1.6%.

Financial Analysis:

  • EBITDA decreased by 19.8% compared to 2022, influenced by rising operating costs and major expansion projects.
  • Net earnings declined by 33.0%, with basic and diluted earnings per share at $2.00 and $1.98, respectively.

Outlook: Richelieu continues to focus on integrating its acquisitions and optimizing operations. Expansion and modernization projects in several regions, including Atlanta, Nashville, and Chicago, are complete, with a significant project in Calgary implemented in December 2023.

Richelieu’s financial performance in 2023, marked by strategic acquisitions and steady sales, positions the company well for future growth and market leadership in specialty hardware and complementary products.


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