Q2 2025 Colabor Group Inc Earnings Call Transcript
Key Points
- Colabor Group Inc (COLFF) reported a 5.1% increase in consolidated revenues, reaching $169.5 million, driven by the acquisition of Alimplus and organic growth from major accounts.
- The acquisition of Alimplus, including the Tout-Prêt assets, is highly strategic, accelerating growth plans and solidifying Colabor's position as the largest Quebec food service operator.
- The integration of Alimplus and the start of the new Mayrand supply agreement are progressing as planned, with expected revenue synergies and operational efficiencies.
- Colabor secured a new major account in Quebec, expected to generate approximately $800,000 in monthly revenue, enhancing their client portfolio.
- Despite the cybersecurity incident, most operations are back online, and the company is actively working with experts to fully restore systems and minimize impact.
- Colabor Group Inc (COLFF) experienced a net loss of $2.3 million in the second quarter, compared to net earnings of $1.7 million in the same period last year.
- Consolidated adjusted EBITDA from continuing operations decreased to $5.4 million or a 3.2% margin, down from $9.7 million or a 6% margin in the previous year, due to lower margins from contract renewals and softness in the restaurant channel.
- The company's leverage ratio increased to 4.3x adjusted EBITDA, up from 2.4x at the end of 2024, due to the acquisition of Alimplus and increased net debt.
- Revenues from wholesale activities declined by 1.8%, continuing to be affected by the slowdown in the restaurant industry.
- The recent cybersecurity incident posed a significant distraction, impacting operations and requiring extensive resources to address and resolve.
Good morning, ladies and gentlemen, and welcome to the Colabor's second quarter 2025 results. (Operator Instructions)
This call is being recorded on Friday, July 25, 2025. I would now like to turn the conference over to Louis Frenette, President and CEO. Please go ahead.
Thank you, Joel. Good morning, everyone, and welcome to Colabor's Group Fiscal 2025 second quarter results conference. This is Louis Frenette, President and Chief Executive Officer. Last evening, we released our earnings results for the 12- and 24-week period ended June 14, 2025.
The press release and disclosure documents can be found on our website and on sedarplus.ca. The accompanying presentation, including statement on forward-looking information and non-IFRS performance measure can also be accessed online in the Investors section at colabor.com.
Joining me today on the call is Yanick Blanchard, our interim EVP and Chief Financial Officer. Yanick is an executive with over 25 years of
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