Fiscal 2021 stands out in Richelieu's financial history as the best performing year in regards to results and financial position, and one of the most dynamic in terms of strategic expansion.
The company’s 2021 growth shows it took advantage of the growing demand in the renovation market as well as business acquisition opportunities.
Sales in the manufacturer market reached $1.2 billion, up 30.9%, including an increase of 32.5% in Canada and 37.3% (in U.S. dollars) in the United States. In the retailer market, sales rose to $236.8 million, up 13.7%, with 17.6% in Canada and 11% (in U.S. dollars) in the U.S. In the fourth quarter, all markets contributed strongly with a 27.8% increase in sales for the manufacturer market and a 10.4% increase for the retailer market.
“We are pleased with the rise in EBITDA and net earnings, which reflect an increase in sales and our ongoing efficiency and cost control efforts,” said Richard Lord, President and CEO of Richelieu. “Also worth noting is the 85.7% increase in the quarterly dividend, which rises to $0.13.
"In addition to the five acquisitions completed in Canada and the United States during the year, three more acquisitions were completed after Nov. 30, 2021. These eight acquisitions enable us to strengthen our presence in markets where we were already active, enter new strategic territories, integrate new teams with a solid knowledge of their markets, and add over $180 million in sales annually. The latest acquisitions are three U.S. distributors of specialty hardware and complementary products serving manufacturer customers: Compi Distributors, which operates four distribution centers in Missouri and Illinois; HGH Hardware Supply, which also operates four distribution centers in Alabama, Tennessee, and Georgia; and National Builders Hardware, which operates a distribution center in Portland, Oregon. We also opened two more centers in the United States, in Rochester, New York, and Reading, Pennsylvania, and expanded several of our U.S. centers, notably those in Detroit, Boston, Dallas, and Orlando.
“As a result of these developments and recent acquisitions, Richelieu's North American network now consists of 106 strategically located distribution centers, including 57 in the United States," said Lord.
Consolidated sales
Consolidated sales reached $1,440.4 million, an increase of $312.6 million or 27.7% over 2020, of which 22.8% from internal growth and 4.9% from acquisitions. At comparable exchange rates to 2020, the consolidated sales growth would have been 30.9% for the year ended Nov. 30, 2021.
Sales to manufacturers grew to $1,203.6 million, compared with $919.5 million for fiscal 2020, an increase of $284.1 million or 30.9%, of which 26.9% from internal growth and 4.0% from acquisitions. Sales to hardware retailers and renovation superstores grew by 13.7% or $28.5 million to total $236.8 million, of which 4.9% from internal growth and 8.8% from acquisitions.
In Canada, Richelieu achieved sales of $944.8 million, compared with $730.0 million for fiscal 2020, up by $214.8 million or 29.4%, of which 24.5% from internal growth and 4.9% from acquisitions. Sales to manufacturers rose to $767.5 million, up by $188.4 million or 32.5%, of which 29.3% from internal growth and 3.2% from acquisitions. Sales to hardware retailers and renovation superstores reached $177.3 million, compared with $150.8 million, up by $26.5 million or 17.6% over fiscal 2020, of which 6.4% from internal growth and 11.2% from acquisitions. These increases are the result of increased demand in the renovation market in Canada as well as higher selling prices.
In the United States, the corporation recorded sales of U.S.$395.6 million, compared with U.S.$296.3 million for fiscal 2020, an increase of US$99.3 million or 33.5%, of which 28.1% from internal growth and 5.4% from acquisitions. Sales to manufacturers totalled U.S.$348.1 million, compared with U.S.$253.5 million, an increase of U.S.$94.6 million or 37.3% over fiscal 2020, of which 31.5% from internal growth and 5.8% from acquisitions. Sales to hardware retailers and renovation superstores were up by 11.0% compared to fiscal 2020, of which 8.2% from an internal growth and 2.8% from acquisitions.
As in Canada, these increases can be explained by a higher demand in the renovation market as well as the increase of selling prices. Considering exchange rates, U.S. sales expressed in Canadian dollars amounted to $495.6 million, compared with $397.9 million for 2020, an increase of 24.6%. They accounted for 34.4% of consolidated sales in fiscal 2021, whereas they represented 35.3% of the year's consolidated sales in fiscal 2020.
