Q4 & YEAR 2023 RESULTS
For the 16 - week period and year ended December 30, 2023
C OL A B OR G R OU P I N C . ( T S X : GC L )
February 29, 2024
FORWARD LOOKING STATEMENT
DISCLAIMER
This document is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Colabor Group Inc. and has not been prepared for delivery to, and review by, prospective investors in order to assist them in making an investment decision or regarding a distribution of securities.
FORWARD LOOKING STATEMENT
This document contains certain forward-looking statements as defined under applicable securities law. Forward-looking information may relate to Colabor's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee", "ensure" or other similar expressions concerning matters that are not historical facts. Particularly, statements regarding the Company's financial guidelines, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which Colabor believes are reasonable as of the current date. While Management considers these assumptions to be reasonable based on information currently available to the Company, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Colabor currently expects, including those mentioned in the Company's Annual Information Form, which can be found under its profile on SEDAR+ (www.sedarplus.ca). These factors, which include risks associated to the COVID-19 pandemic and its possible impact on consumer behavior or the economy, are not intended to represent a complete list of the factors that could affect Colabor and future events and results may vary significantly from what Management currently foresees. The reader should not place undue importance on forward-looking information contained in this press release, information representing Colabor's expectations as of the date of this document (or as of the date they are otherwise stated to be made) and are subject to change after such date. While Management may elect to do so, the Company is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information at any particular time, whether as a result of new information, future events or otherwise, except as required by law.
NON-IFRS PERFORMANCE MEASURES
This Document also contains information that follows non-IFRS measures of performance. Such information should not be considered in isolation or as a substitute for other IFRS performance measures, but rather as supplementary information. These measures are widely used in the financial community to evaluate the profitability of operations. They reflect the inclusion or exclusion of certain amounts that are not considered representative of the Company's recurring financial performance. Since these concepts are not defined by IFRS, they may not be comparable with those of other companies.
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CO N T E N T
- Q4 2023 Phase II of our Turnaround
- Q4 2023 Evolution of our Strategic Plan
- Q4 2023 Financial results
- Share information
PHASE II OF OUR TURNAROUND
Our transformation strategy has delivered
11 consecutive quarters of year-over-year
revenue growth
Implementation of strategic initiatives sustained strong Q4 2023 results:
- 1.6% revenue growth or 5.8$ excluding the additional week of 2022;
- 70 basis points gross margin increase;
- 18.2% Adjusted EBITDA(1) growth.
Maintaining solid balance sheet:
- Leverage ratio (2) increased to 2.4x from 2.3x at end of FY2022.
- Adjusted EBITDA is a non-IFRS measure. Refer to slide 12 non-IFRS measures. Adjusted EBITDA corresponds to net operating earnings before costs not related to current operations, depreciation and amortization and expenses for stock-basedcompensation plan.
- Financial leverage ratio is an indicator of the Company's ability to service its long-term debt. It is defined as net debt / adjusted EBITDA less lease liability payments for the last twelve months. Lease payment obligations for the LTM as of December 30, 2023 were $12.4M and amounted to $8.2M for both fiscal 2023 and fiscal 2022.
Successful relocation to our new strategic distribution site in St-Bruno-de-Montarville:
- In time and within budget;
- Despite this significant CAPEX, we have maintained almost an unchanged leverage ratio;
- Will enable us to effectively reach 90% of the potential HRI market in the province, compared to the current 30%;
- Distribution activities in Western Quebec will begin in S2 2024
Characteristics of the new hybrid facility:
- Custom-builtinstallation offering optimal refrigeration and freezing capabilities;
- Ability to conduct both wholesale and distribution activities from the same location;
- Enhances inventory turnover and production capacity;
- Improves operational efficiency and profitability.
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NEW HYBRID FACILITY (ST-BRUNO, QUEBEC)
Rendering image provided by Écoparc Saint-
Bruno.
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EVOLUTION OF THE 5- YEAR STRATEGIC PLAN
P R O F I T A B I L I T Y
G E N E R AT E
P R O F I T A B L E G R O W T H
- Improve customer & product mix.
- Optimizing category management and procurement and investing in our private label to achieve an optimal mix of national brands / private label.
ANNUAL RESULTS 2023
- 60 bp gross margin improvement.
- 29% Adjusted EBITDA growth.
- Growing private label sales.
G R O W T H | P E O P L E | B R A N D | ||
P O T E N T I A L R E A C H | A T T R A C T , R E T A I N | R E N E W , | ||
F R O M 3 0 % T O 9 0 % | A N D D E V E L O P | R E F R E S H | ||
O F T H E H R I M A R K E T | ||||
• HR focus on attracting and | • | Focus on raising local | ||
• | Organic investments in sales | retaining talent | offering and customer | |
and marketing continued. | service. | |||
• | Evaluating pipeline of M&A | ANNUAL RESULTS 2023 | ||
opportunities. | ANNUAL RESULTS 2023 | |||
• More resources available to | ||||
ANNUAL RESULTS 2023 | support strong summer | • | Fourchette Bleue | |
season. | certification | |||
• Moved to our new facility in | • New facility to attract and | • | Maturin minority | |
St-Bruno | retain talent. | investment (local farm- | ||
• | Organic and non-organic | • New employer brand | to-table offering). | |
growth initiatives and Q42022 | launched. | |||
chain wins were significant | ||||
contributors to revenue | ||||
growth. | ||||
• | Demonstrating demand in | |||
Western Quebec. |
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FOURTH QUARTER 2023 HIGHLIGHTS Q4 2023 SALES AND PROFITABILITY
CONSOLIDATED SALES
+1.6%
$193.2M $196.3M
Q4 2022 | Q4 2023 |
DISTRIBUTION SALES UP BY 9.1%
WHOLESALE SALES DOWN BY 19.0%
- 16 weeks in the fourth quarter of 2023 vs 17 weeks in 2022; excluding the additional week, the growth would have been 5.8% compared to 1.6%;
- Higher Distribution volume;
- Impact of new chains and street customers;
- Impact of inflation estimated at 4.8%;
- Decrease of Wholesale internal sales segment to the Distribution segment, as part of a supply optimization project between our warehouses;
+18.2%
$11.7M | ||
$9.9M | Higher adjusted EBITDA(1) | |
ADJUSTED | • Higher volume. | |
EBITDA(1) |
Q4 2022 | Q4 2023 |
- Adjusted EBITDA is a non-IFRS measure. Refer to slide 12 non-IFRS measures. Adjusted EBITDA corresponds to net operating earnings before costs not related operations, depreciation and amortization and expenses for stock-basedcompensation plan.
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Q4 2023 NET EARNINGS AND CASH FLOW TREND
NET EARNINGS
Net earnings decreased to $0.4M ($nil per share), from a net earnings of $1.7M ($0.02 per share)
- Higher EBITDA (1)
- Higher amortization expenses, costs not related to current operations related to our relocation ($0.8M), and financial expenses
CASH FLOW
FROM OPERATIONS
Cash flows generated amounted to $8.9M, up from -$0.7M
- Q4 2023 lower utilization of working capital requirements explained by a higher collection of receivables in 2023 related to the increase of sales and timing of inventories purchases and supplier payments.
- Adjusted EBITDA is a non-IFRS measure. Refer to slide 12 non-IFRS measures. Adjusted EBITDA corresponds to net operating earnings before costs not related to current operations, depreciation and amortization and expenses for stock-basedcompensation plan.
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Q4 2023 NET DEBT AND LEVERAGE RATIO TREND
$13.7M | |||||
$61.5M | Net debt increased to $61.5M, was $47.8M at | ||||
$47.8M | |||||
NET DEBT (1) | • | Use of credit facility for $12M; | |||
• | Investment in capex for our new site. |
Q4 2022 Q4 2023
Leverage ratio up at 2.4x | |||||
• | Higher net debt; | ||||
• Contribution of higher Adjusted EBITDA; | |||||
2.3x | 2.4x | • | Capital investments for our new facility. | ||
LEVERAGE RATIO(2) | |||||
Q4 2022 | Q4 2023 |
- Net debt is a non-IFRS measure. Refer to slide 12 non-IFRS measures. Net debt corresponds to bank indebtedness, current portion of long-term debt and long-term debt, net of cash.
- Financial leverage ratio is an indicator of the Company's ability to service its long-term debt. It is defined as net debt / adjusted EBITDA less lease liability payments for the last twelve months. Lease payment obligations for the LTM as of December,30 2023 were $12.4M and amounted to $8.2M for both fiscal 2023 and fiscal 2022.
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Q4 2023 FINANCIAL HIGHLIGHTS
16-week | 17-week | 52-week period | 53-week period | |
period | period | |||
(in thousands of dollars, except percentages, per share data and | 2023 | 2022 | 2023 | 2022 |
financial leverage ratio) | ||||
Sales from continuing operations | 196,320 | 193,246 | 659,129 | 574,071 |
Adjusted EBITDA(1) | 11,652 | 9,855 | 37,554 | 29,068 |
Adjusted EBITDA(1) margin (%) | 5.9 | 5.1 | 5.7 | 5.1 |
Net earnings from continuing operations | 354 | 1,682 | 6,047 | 4,551 |
Net (loss) earnings | (101) | 1,263 | 5,592 | 4,065 |
Per share - basic and diluted | 0.00 | 0.01 | 0.05 | 0.04 |
Cash flow from operating activities | 8,899 | (663) | 28,943 | 19,299 |
As at | As at | |||
Financial Position | December 30, | December 31, | ||
Net debt(2) | 2023 | 2022 | ||
61,481 | 47,764 | |||
Financial leverage(3) | 2.4x | 2.3x | ||
- Adjusted EBITDA is a non-IFRS measure. Refer to slide 12 non-IFRSmeasures. Adjusted EBITDA corresponds to net operating earnings before costs not related to current operations, depreciation and amortization and expenses for stock-based compensation plan.
- Net debt is a non-IFRS measure. Refer to slide 12 non-IFRSmeasures. Net debt corresponds to bank indebtedness, current portion of long-term debt and long-term debt, net of cash.
- Financial leverage ratio is an indicator of the Company's ability to service its long-term debt. It is defined as net debt / adjusted EBITDA less lease liability payments for the last twelve months. Lease payment obligations for the LTM as of December 30, 2023 were $12.4M and amounted to $8.2M for both fiscal 2023 and fiscal 2022.
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Colabor Group Inc. published this content on 29 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 March 2024 16:19:05 UTC.