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Highlights

  • Adentra’s Q2 2024 revenue declined 6.2% to USD 549.4 million, impacted by lower product prices.
  • Net profit surged 82.8% to USD 17.0 million, driven by higher gross profit.
  • The company paid a dividend of CAD 0.14 per share on October 25, 2024.

ADENTRA Inc. (TSX: ADEN) distributes architectural products to professional dealers, home centers, and fabricators. It has a market cap of CAD 992.24mn.

In Q2 2024, the company’s revenue was USD 549.4 million, a decrease of 6.2% compared to USD 585.9 million in the prior corresponding period (pcp). This drop was mainly due to lower product prices, which contributed to a 5% decline, while sales volume also fell by 1%. Despite the decrease in revenue, the company managed to keep its gross profit stable at USD 119.2 million, only slightly down from USD 119.4 million the previous year. This was helped by a broader range of higher-margin products.

Profit before income taxes rose to USD 16.5 million, a 27.9% increase from USD 12.9 million in pcp. This surge was primarily driven by reduced finance costs and higher gross profit. As a result, the company reported a net profit of USD 17.0 million, up 82.8% from USD 9.3 million in Q2 2023.

Recent Business Update

The company will report its third quarter 2024 results on November 13, 2024. Recently, the company’s board of directors declared a dividend of CAD 0.14 per share. This payment was made on October 25, 2024.

Outlook

As per the company’s management, sales are expected to get better in the second half of the year 2024 compared to 2023.                                           

In this environment, the company expects modest growth in full-year Adjusted EBITDA. This growth will be supported by ongoing strength in gross margins and careful management of operating expenses.                

Top 10 Shareholders

The top 10 shareholders of ADEN own about 21.58% of the total shares. Bull (Peter Morris) holds the largest stake at around 8.82%. Mackenzie Investments follows with approximately 3.63%.

Price Information

 

The stock price of ADEN has declined by around 5.83% in the past month. However, in the last nine months, it has surged by around 24.03%. The stock’s 52-week low and high range spans from CAD 24.64 to CAD 45.25. As of October 28, 2024, the stock’s closing price is CAD 39.69.

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 October 28, 2024. The reference data in this report has been partly sourced from EODHD/Others.