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Highlights

  • Adentra’s EBITDA surged by 26.1% to USD 43.9 million, due to higher gross profit and lower finance expenses.
  • Net profit grew 30% to USD 10.4 million compared to USD 8.0 million in Q3 2023.
  • Quarterly dividend increased to CAD 0.15 per share, slated to be paid on January 31, 2025.
  • The company acquired Woolf Distributing Company, Inc for USD 130 million.

ADENTRA Inc. (TSX: ADEN), listed on the Toronto Stock Exchange, is a renowned distributor of architectural building products. It operates with multiple flagship brands across North America. Adentra has a market cap of CAD 949.21mn.

In Q3 2024, the company reported a 1.8% increase in revenue, reaching USD 568.8 million compared to USD 558.6 million in Q3 2023 (pcp). This growth was partially driven by the two-month contribution of revenue from the recent acquisition of Woolf. Additionally, the company saw a 2.5% rise in gross profit to USD 121.3 million from USD 118.3 million in pcp. This was attributed to the expansion and diversification of the product mix, with a focus on higher-margin and value-added offerings.

The company's EBITDA surged by 26.1% to USD 43.9 million, from USD 34.8 million in the previous year. This growth was mainly driven by higher gross profit and reduced net finance expenses. As a result, the company posted a 30% increase in net profit at USD 10.4 million, compared to USD 8.0 million in Q3 2023.

Recent Business Update

Company Outlook

The company’s management expects sales in the second half of 2024 to surpass those of 2023. They also anticipate modest growth in full-year Adjusted EBITDA, fueled by strong gross margins and careful control of operating expenses.

 Top 10 Shareholders

The top 10 shareholders of Adentra own approximately 21.62% of the total shares. Bull (Peter Morris) holds the largest stake at around 8.82%. Mackenzie Investments holds the second-largest stake at about 3.62%.

Stock Information

The stock price of ADEN has increased by approximately 7.68% and 3.04% over the past week and past month, respectively. As of November 27, 2024, the stock’s closing price is CAD 40.90, which is above the average of its 52-week high of CAD 45.25 and its 52-week low of CAD 25.15.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 27, 2024. The reference data in this report has been partly sourced from EODHD/Others.