Richelieu Profit Rises 66%, Dividend Raised 86%

Richelieu Hardware (TSE: RCH) announced its financial results for the fourth quarter of 2021 and for the full year on Thursday. 

Richelieu is an importer, distributor, and manufacturer of specialized hardware and complementary products. 

Sales & Earnings 

In the fourth quarter ended November 30, 2021, sales totaled C$398.2 million, up 24.8%. EBITDA increased by 52.7% to C$71.3 million, while diluted earnings per share were C$0.79, up 64.6%. 

For Fiscal Year 2021, sales reached C$1,440.4 million, up 27.7% over 2020. EBITDA rose to C$234.4 million, up 51.8%. EBITDA margin was 16.3%, compared to 13.7% in 2020. 

Net income attributable to shareholders increased by 66.3% to C$141.8 million, reaching C$2.51 per diluted share, up 67.3%. 

The company increased its quarterly dividend by 85.7% to C$0.13. 

Five acquisitions were completed during Fiscal Year 2021, and three others were completed after November 30, 2021, for C$180 million in additional annual sales. 

CEO Commentary 

Richelieu president and CEO Richard Lord said, “Fiscal 2021 stands out in Richelieu’s financial history as the best performing year in regards to results and financial position, and one of the most dynamic in terms of strategic expansion. 2021 growth attests that the Corporation, with its strengths and assets, successfully took advantage of the growing demand in the renovation market as well as business acquisition opportunities.”   

Wall Street’s Take 

On January 10, CIBC analyst Hamir Patel kept a Buy rating on RCH and raised its price target to C$49 (from C$48). This implies 1.5% upside potential. 

Overall, RCH scores a Moderate Buy consensus rating among analysts based on one Buy and one Hold. The average Richelieu Hardware price target of C48.50 implies 0.5% upside potential to current levels.   

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