Colabor Group (GCL) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 0.4% year-over-year to $131.7 million, driven by distribution volume growth, new and existing clients, and the Beaudry & Cadrin asset acquisition, partially offset by a lower-margin contract renewal and restaurant sector slowdown.

• Adjusted EBITDA fell to $2.3 million (1.7% margin) from $4.9 million (3.7% margin) year-over-year, mainly due to a major contract repricing at lower margin.

• Net loss from continuing operations increased to $4.0 million ($0.04/share) from $1.8 million ($0.01–$0.02/share) year-over-year, mainly due to lower adjusted EBITDA and higher non-operating costs.

• Cash flow from operating activities was $6.2 million, down from $11.7 million, impacted by higher working capital needs and lower EBITDA.

• The company is focused on expanding in Western Québec, improving product and customer mix, and leveraging local supply chains to benefit from the buy-local trend.

Financial highlights

• Q1 2025 sales increased 0.4% to $131.7 million; distribution revenues up 3%, wholesale down 3.8%.

• Adjusted EBITDA: $2.3 million (1.7% margin), down from $4.9 million (3.7% margin) year-over-year.

• Net loss: $4.0 million, compared to $1.8 million year-over-year.

• Cash flow from operations: $6.2 million, down from $11.7 million year-over-year.

• Net debt: $47.1 million, down from $47.8 million at year-end 2024.

Outlook and guidance

• Gross margin is expected to improve sequentially through 2025 due to seasonality and a higher mix of independent restaurant clients, though not to prior-year levels due to the institutional contract repricing.

• The company anticipates continued market share gains and customer growth, especially in Western Québec, and expects the impact from renewed institutional supply agreement at lower margins.

• Full benefits of margin mitigation actions are expected to materialize over time, with ongoing focus on productivity, product mix, and prudent financial management.

• Closing of the Alimplus/Mayrand Plus acquisition is expected in Q2 2025, expanding reach and customer base.