MONTRÉAL, Sept. 11, 2025 /CNW/ -
Results
For the six-month period ended July 31, 2025, the Company's revenues increased by $22,837,000 to $329,375,000 compared to $306,538,000 recorded for the corresponding period of 2024, an increase of 7.4%. This increase is primarily attributable to the growth in commercial revenue from the Tanguay division, whose revenue rose by $24,403,000 or 8%. Comparable store sales also increased by 8.4% during the period. In contrast, investment property revenue from the real estate division declined by ($1,566,000) compared to the corresponding period in 2024, representing a decrease of 97.4%. Net earnings for the six-month period ended July 31, 2025, which amounted to $4,104,000 compared to the net earnings of $20,925,000 recorded for the corresponding period of 2024. Basic net earnings per share amounted to $0.13 compared to $0.64 recorded for the corresponding period of 2024.
The net earnings recorded consisted of a net loss of ($8,460,000) from the real estate division and a net earnings of $12,564,000 from the Tanguay division, compared to a net loss of ($885,000) and net earnings of $21,810,000, respectively, for the corresponding period of 2024. The variances observed resulted in a change of ($7,575,000) for the real estate division and ($9,246,000) for the Tanguay division.
The variation in the net loss of the real estate division is primarily attributable to the ongoing expansion and optimization work, which is temporarily increasing operating expenses. These projects are expected to be completed during the year, which should allow for a gradual return to improved financial performance for the division.
The variation in net earnings of the Tanguay division for the six-month period ended July 31, 2025, is mainly attributable to the decrease in the after-tax unrealized gain on investments, which amounted to $4,174,000 compared to $13,104,000 for the corresponding period, as well as from the realization of an after-tax gain on the disposal of fixed assets totaling $5,459,000 during the corresponding period of 2024.
During the period ended July 31, 2024, the Company disposed of fixed assets in the amount of $6,948,000, resulting in an after-tax gain of $5,459,000, or $0.17 per basic share. This amount includes an after-tax gain of $2,097,000, or $0.07 per basic share, received as an additional settlement obtained by winning the case relating to the expropriation of the former Kirkland store by the Réseau express métropolitain $(REM)$ in 2019. Finally, this amount also includes the sale of its Trois-Rivières store for an amount of $4,500,000, resulting in an after-tax gain of $3,362,000, or $0.10 per basic share.
Although these unfavorable variations had a negative effect, the improvement in Tanguay's operating performance during the period mitigated their impact on net earnings. This improvement mainly stems from the synergies generated by the operational and commercial reorganization implemented in May 2023, the completion of the network revitalization program, as well as the sales growth observed during the period.
For the six-month period ended July 31, 2025, the share repurchase program had no impact on basic net earnings per share. As for the corresponding period of 2024, the share repurchase program contributed to an increase of $0.01 on basic net earnings per share.
The variation in adjusted net earnings for the non-recurring element would be ($11,362,000) or ($0.34) per basic share for the six-month period ended July 31, 2025, when compared to the six-month period ended July 31, 2024, is explained as follows:
(Unaudited and $ in thousands)
July 31, 2025 July 31, 2024
Net earnings 4 104 20 925
Gain on disposal of fixed assets
(after-tax) - (5 459)
Adjusted net earnings 4 104 15 466
Net adjusted earnings prior
period 15 466
Variation (11 362)
The variations in net adjusted earnings is allocated as follows :
(Unaudited and $ in thousands)
Increase Increase
Increase Increase (decrease) (decrease)
(decrease) (decrease) immeubles In adjusted
de
In retal Ininvestments In net
operations investment earnings
properties
As at April
30, 2025 5 677 (16 773) (3 298) (14 394)
As at July 31,
2025 936 6 373 (4 277) 3 032
Total 6 613 (10 400) (7 575) (11 362)
Annual financial information
($ in thousands, except for per share amounts)
January 31, 2025 January 31, 2024
Revenue 602 701 578 945
Net earnings 43 909 47 427
Total assets 724 945 621 029
Net earnings per share basic
and diluted 1,35 1,44
Dividends per share 0,36 0,36
Financial position and dividends
Cash and investments, net of bank overdrafts, decreased by ($29,800,000) during the six-month period ended July 31, 2025. This decrease is mainly attributable to the expansion and optimization work at RONA's distribution center, which was entirely funded from the Company's available cash and investments. Financial investments consist of treasuries bearing interest, common and preferred shares, which at the close of the six-month period ended July 31, 2025, had a market value of $175,524,000 (including cash, net of the bank overdraft).
As at July 31, 2025, working capital showed a deficit of ($1,139,000) a decrease of $11,522,000 in the deficit compared to the year ended January 31, 2025. Despite the working capital deficit, the Company has access to an unused credit facility as at July 31, 2025, and holds interest-bearing cash equivalents in its investment portfolio. Management considers these resources sufficient to meet short-term liquidity needs and financial obligations. The Company's shareholders' equity decreased from $529,507,000 as at January 31, 2025, to $521,983,000 as at July 31, 2025. As at July 31, 2025, the book value per share stood at $16.34 compared to $16.36 as at January 31, 2025.
Pursuant to the normal course issuer-bid put in place on April 15, 2024, and renewed on April 15, 2025, accordingly, 410,600 common shares were repurchased and cancelled by the Company. As a result of this change, the Company had, as at July 31, 2025, 31,951,700 common shares issued and outstanding.
During the six-month period ended July 31, 2025, no options were granted. The Company may still grant pursuant to the Stock Option Plan a total of 5,710,864 options, representing 17.87% of the issued and outstanding shares of the Company.
Quarterly results
(Unaudited and $ in thousands, except for per share amounts)
April 30, April 30, July 31, July 31,
2025 2024 2025 2024
$ $ $ $
Revenue 150 124 137 144 179 251 169 394
Net earnings (12 933) 1 461 17 037 19 464
Net basic
earnings per
share (0,40) 0,04 0,53 0,60
October 31, October 31, January 31, January 31,
2024 2023 2025 2024
$ $ $ $
Revenue 143 781 140 078 152 382 134 690
Net earnings 8 494 (8 449) 14 490 14 496
Net basic
earnings per
share 0,26 (0,25) 0,45 0,44
For the three-month period ended July 31, 2025, the Company's revenues increased by $9,857,000 to $179,251,000 compared to $169,394,000 recorded for the corresponding period of 2024, an increase of 5.8%. This increase is primarily attributable to the growth in commercial revenue from the Tanguay division, whose revenue rose by $11,188,000 or 6.7%. Comparable store sales also increased by 6.7% during the period. In contrast, investment property revenue from the real estate division declined by ($1,331,000) compared to the corresponding period of 2024, representing a decrease of 97.3%. Net earnings for the three-month period ended July 31, 2025, which amounted to $17,037,000 compared to the net earnings of $19,464,000 recorded for the corresponding period of 2024. Basic net earnings per share amounted to $0.53 compared to $0.60 recorded for the corresponding period of 2024.
The net earnings recorded consisted of a net loss of ($4,743,000) from the real estate division and net earnings of $21,780,000 from the Tanguay division, compared to a net loss of ($466,000) and net earnings of $19,930,000, respectively, for the corresponding period of 2024. The variances observed resulted in a change of ($4,277,000) for the real estate division and $1,850,000 for the Tanguay division.
The variation in the net loss of the real estate division is primarily attributable to the ongoing expansion and optimization work, which is temporarily increasing operating expenses. These projects are expected to be completed during the year, which should allow for a gradual return to improved financial performance for the division.
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