Core Viewpoint - Colabor Group Inc. has provided an update on a cybersecurity incident that affected its internal IT systems, stating that the incident has been contained and most operations have returned to normal [1][2]. Incident Containment and Operations - The company has engaged leading external cybersecurity experts to manage and investigate the incident, resulting in the restoration of most systems and normal operations [1][2]. - Colabor is currently unable to fully assess the impact of the incident on its operating revenues for the current quarter but does not expect a materially significant effect on its revenues for the 2025 fiscal year [3]. Employee and Data Security - Preliminary investigations indicate that personal information of certain employees may have been compromised, and the investigation is ongoing [4]. - As a precaution, Colabor is offering credit monitoring services to all employees and has notified relevant authorities about the incident [4]. Leadership Response - The President and CEO of Colabor expressed gratitude towards employees and cybersecurity experts for their commitment during the incident, emphasizing the company's resilience and determination to maintain trust with stakeholders [5]. Company Overview - Colabor is a distributor and wholesaler of food and related products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces, as well as the retail market [6].

Core Viewpoint - Colabor Group Inc. reported a mixed performance for the second quarter of 2025, with increased sales but significant net losses and decreased adjusted EBITDA, influenced by a recent acquisition and ongoing macroeconomic challenges in the restaurant industry [1][3][10]. Financial Performance - Sales from continuing operations increased by 5.1% to $169.5 million compared to $161.3 million in the same period of 2024 [4][7]. - Adjusted EBITDA decreased to $5.4 million, with a margin of 3.2%, down from $9.7 million and 6.0% in the corresponding period of 2024 [4][11]. - Net loss from continuing operations was $2.3 million, compared to net earnings of $1.7 million in the same quarter of 2024 [4][12]. - Cash flow from operating activities decreased to $4.5 million from $5.0 million in the second quarter of 2024 [4][15]. Acquisition Impact - The acquisition of Alimplus Inc.'s food distribution assets contributed $8.8 million to sales, highlighting its strategic importance for growth and market positioning [7][10][8]. - The acquisition is expected to create synergies and enhance customer base, particularly in targeted territories [8][9]. Financial Position - As of June 14, 2025, net debt increased to $97.3 million from $47.8 million at the end of 2024, reflecting the financing of the acquisition [4][16]. - The financial leverage ratio rose to 4.3x, up from 2.4x at the end of 2024, indicating increased reliance on debt [4][6]. Market Conditions - The company faced challenges due to macroeconomic headwinds affecting the restaurant industry, which impacted profitability despite revenue growth [9][10]. - The renewal of a major supply agreement at less favorable terms also contributed to the decline in gross margins [11][12]. Future Outlook - The company plans to focus on optimizing operations and improving profitability in the second half of the year, with an emphasis on debt reduction [18].

Core Points - Colabor Group Inc. identified a cybersecurity incident on July 20, 2025, affecting its internal IT systems [1] - The company took immediate action to protect its network and data by engaging cybersecurity experts for containment and remediation [2] - The full scope and impact of the incident, including potential data access of customers, suppliers, or employees, is still under investigation [3] Company Overview - Colabor is a distributor and wholesaler of food and related products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces, as well as the retail market [4]

Group 1 - Colabor Group Inc. will release its Q1 results for the period ended June 14, 2025, after market close on July 24, 2025 [1] - A conference call to discuss the results is scheduled for July 25, 2025, at 9:30 a.m. Eastern Time [2] - Colabor operates as a distributor and wholesaler of food products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces [4] Group 2 - The conference call can be accessed via a toll-free number for North American participants and an international dial-in option [2] - A recording of the conference call will be available until August 1, 2025, for those who wish to listen later [3] - Colabor offers specialty food products including fish, seafood, and meat through its Broadline activities [4]

Group 1 - Colabor Group Inc. held its annual meeting of shareholders on May 8, 2025, with 61,043,516 common shares represented, accounting for 59.84% of the issued and outstanding shares [1] - All eight candidates proposed for the Board of Directors were elected by majority vote, with Marc Beauchamp receiving 99.33% in favor and Danièle Bergeron receiving 96.82% [1] - The appointment of PricewaterhouseCoopers LLP as the auditor was approved unanimously at 100.00% [2] Group 2 - Colabor operates as a distributor and wholesaler of food and related products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces, as well as the retail market [3]

Financial Performance - Sales from continuing operations for Q1 2025 were $131.7 million, a slight increase of 0.4% compared to $131.2 million in Q1 2024 [3][7] - Adjusted EBITDA decreased to $2.3 million, representing a margin of 1.7%, down from $4.9 million and a margin of 3.7% in the same period last year [3][9] - The net loss from continuing operations was $4.0 million, compared to a loss of $1.8 million in Q1 2024 [3][10] - Cash flow from operating activities decreased to $6.2 million from $11.7 million in the prior year [3][11] Financial Position - As of March 22, 2025, net debt was reduced to $47.1 million from $47.8 million at the end of 2024 [3][12] - The financial leverage ratio increased to 2.8x from 2.4x [3][4] - Working capital decreased to $45.8 million from $50.3 million at the end of the previous fiscal year, attributed to seasonal effects [11][12] Market Dynamics - The growth in purchasing volume with distribution clients is helping the company gain market share despite a slowdown in the restaurant industry [5] - The renewal of a supply agreement with an institutional client at lower margins than in 2024 is impacting financial performance [8][9] - Wholesale activities sales decreased by 3.8%, primarily due to the slowdown in the restaurant industry [8] Strategic Initiatives - The company announced an agreement to acquire the food distribution assets of Alimplus Inc. and its subsidiary Tout-Prêt Inc. for $51.5 million, pending closing conditions [7] - Management is focusing on sound financial management and aims to improve product and customer mix to mitigate the impact of lower-margin contracts [13]

Group 1 - Colabor Group Inc. will hold its Annual Meeting of Shareholders on May 8, 2025, at 2:00 p.m. Eastern Daylight Time, in a virtual-only format [1][3] - Registered shareholders and duly appointed proxyholders can participate in the Meeting, vote, or submit questions in real time, provided they meet the conditions outlined in the Management Information Circular [2] - Non-registered shareholders may attend the Meeting as guests but will not have voting or questioning rights [2] Group 2 - Colabor operates as a distributor and wholesaler of food and related products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces, as well as the retail market [4]

Core Points - Colabor Group Inc. will release its first quarter results for the period ending March 22, 2025, after market close on May 1, 2025 [1] - A conference call to discuss these results is scheduled for May 2, 2025, at 9:30 a.m. Eastern Time [2] Company Overview - Colabor is a distributor and wholesaler of food and related products, serving the hotel, restaurant, and institutional markets (HRI) in Quebec and the Atlantic provinces, as well as the retail market [4]