Rob Brown, ADENTRA’s President and CEO
LANGLEY – Architectural building products distributors ADENTRA Inc. generated sales of $721.7 million and a gross margin of $118.2 million in the first quarter of 2024, the Langley-based firm announced May 8.
Adentra distributes products to the residential, repair and remodel, and commercial construction markets and operates a network of 85 facilities in the U.S. and Canada.
“We delivered robust gross margin performance again in the first quarter, helping to drive improved bottom-line results, including 18.2% year-over-year growth in Adjusted basic earnings per share and 6.3% growth in Adjusted EBITDA” said Rob Brown, ADENTRA’s President and CEO.
“Our first quarter sales volumes also continued to stabilize, increasing by approximately 1% year-over-year. As expected, however, product price deflation continued to impact our top line results, resulting in a 7.7% decrease in total sales compared to the same period last year.”
Those figures compare to $784.3 million in overall sales the year before, and $117 million in gross margin.
“Our 22.1% gross margin performance in a deflationary product price environment was particularly meaningful, and underscores the success of our strategic initiatives, including the expansion and diversification of our product mix with higher-margin and value-added offerings, the success of our global sourcing program, and our disciplined operational performance,” Brown adds. “Operating expenses remained well controlled across our business, and were just 1.5% higher year-over-year, despite continued inflationary pressures in the economy.”
Their Destination 2028 goal is to achieve $3.5 billion U.S. in annual run-rate sales through organic growth and acquisitions. ADENTRA is one of the largest distributors of architectural building products in North America with approximately 6% market share.
Business Examiner Staff
