Rona Inc. has announced the results for its continuing operations for its third quarter ended September 28, 2014. Consolidated revenues from continuing operations amounted to $1.167 billion, compared to revenues of $1.169 billion in the third quarter of 2013. Rona reported a 3% growth in same-store sales. Same-store sales grew 2% in the retail segment and 8.3% in the distribution segment.
For the third quarter of 2014, adjusted net income from continuing operations attributable to participating shares was $38.5 million, up 28.4% compared to $30 million. All figures are in Canadian dollars.
“The third quarter results demonstrate the positive impact of having our teams focused on optimizing store operations. Despite a slow economy and strong competition, our same-store sales in the retail segment have grown by 2%. We are satisfied with the progress of our Réno-Dépôt banner and the performance of our converted Totem stores. Across the country, our various banners’ merchandising programs are bearing fruit and the improved management of store operations is yielding the expected results,” said Robert Sawyer, president and CEO, Rona.
“Given the positive trend in sales and profitability, and Rona’s solid financial situation, we are in a position to start expanding again. In 2015, we will open five new stores, including two stores under the new Réno-Dépôt concept outside Québec. Rona’s expansion will be disciplined and will take place in environments where we must protect and reinforce our market share or where the investment is justified by a strong growth potential and a good return on invested capital,” added Sawyer.
Rona operates a network of over 500 corporate, franchise and independent affiliate stores in Canada. Along with eight distribution centers, Rona serves its own network as well as independent dealers operating under different banners, including Ace for which Rona owns the licensing rights and is the exclusive distributor in Canada.