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FIRST QUARTER RESULTS AND CONTINUED EXPANSION FOR RICHELIEU

Newswire.ca - Thu Apr 11, 9:16AM CDT

Three acquisitions since the beginning of the fiscal year

HIGHLIGHTS OF Q1 ENDED FEBRUARY 29, 2024

MONTREAL, April 11, 2024 /CNW/ - (TSX: RCH) "We began fiscal 2024 with sales equivalent to those of the first quarter of 2023 - a good result since sales in the comparable period of 2023 continued to benefit from favorable market conditions. It should also be noted that the first quarter is historically the weakest period of the year. We have seen the benefits of our recent acquisitions and market development initiatives supported by our strategies of value-added service, innovation, and diversification of customer segments. Despite the significant reduction in our inventories in 2023, we still have some inventories purchased at higher than current cost.  Selling these inventories at market prices has had a negative impact on gross margin.  This situation will gradually be resolved as those products are reordered. We completed several expansion and modernization projects over the past year and also launched our brand-new Calgary centre last December. The start-up and development of these centres, in addition to being impacted by current market conditions, also affected the EBITDA margin downwards. In terms of acquisitions, we are very pleased with the three companies acquired since the beginning of the fiscal year, which are expected to contribute approximately $60 million in annual sales," said Mr. Richard Lord, President and CEO.

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