Image source: Megapixl

Highlights

  • SPB’s Q1 2024 net revenue decreased to CAD 897.7 million from CAD 928.8 million.
  • Gross profit increased to CAD 465.2 million, driven by Certarus contributions.
  • Earnings before taxes fell to CAD 123.8 million due to higher expenses.
  • The company aims for a 5% increase in Adjusted EBITDA for FY 2024.

Superior Plus Corp. (TSX: SPB) is a Canadian company specializing in the distribution of energy and specialty chemicals. It has a market cap of CAD 1.91 billion.

In Q1 2024, the company’s net revenue decreased to CAD 897.7 million, down from CAD 928.8 million in the same period last year, largely due to reduced revenue in the Wholesale Propane, Canadian Propane, and U.S. Propane segments. Despite this, gross profit rose to CAD 465.2 million from CAD 400.3 million in the previous year, driven mainly by contributions from Certarus. Earnings before taxes fell to CAD 123.8 million, compared to CAD 154.4 million in the prior year, primarily due to higher expense of operations and finance costs. The reduction in net income is attributed to a lower EBIT and losses on derivatives and foreign currency.

Moreover, in Q12024, the company had a higher current ratio of 0.96x compared to 0.85x of the industry median. The company has reported sequentially improving financials, with revenue and net income rising at a reasonable rate.

Additionally, it has achieved greater liquidity ratios and successfully reduced average inventory days, a notable advantage. Looking ahead, the company plans to expand its MSU Fleet count and increase volume in fiscal year 2024.

Recent Business Update

The corporation is preparing to release its second-quarter results for 2024 on Tuesday, August 13, 2024, after market close.

Company outlook

The company is reaffirming its target of a 5% increase in Adjusted EBITDA for FY 2024 compared to the 2023 Pro Forma Adjusted EBITDA. This target is largely attributed to organic growth.

Top 10 shareholders

The top 10 shareholders of SPB collectively own approximately 25.85% of the company's shares. Marquard & Bahls AG holds the largest stake at around 9.57%, while The Vanguard Group, Inc. has a stake of about 2.97%.

Stock performance

The stock price of SPB has declined by approximately 4.22% over the past week and 11.69% over the past month. Additionally, it is currently trading below the average of its 52-week high of CAD 10.90 and its 52-week low of CAD 7.64.

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 August 2, 2024. The reference data in this report has been partly sourced from EODHD/Others.