Price deflation hits ADENTRA Q4 earnings

ADENTRA Inc. had total sales of $514.9 million for the fourth quarter of 2023, a decrease of 10.4 percent compared to sales of $574.7 million in the fourth quarter of 2022. The decrease primarily reflects product price deflation with volumes remaining relatively stable year-over-year. US operations fourth quarter sales decreased 10.7 percent to $476.0 million and Canadian operations sales decreased seven percent to CDN$53 million year over year. Overall gross profit was $111.4 million, a 4.1 percent decrease over gross profit of $116.2 million in the fourth quarter of 2022. Gross margin was 21.6 percent compared to 20.2 percent. Fourth quarter adjusted EBITDA increased two percent year over year to $44.5 million from $43.6 million and net income decreased 32.8 percent to $9 million compared to $13.4 million in the year-ago period.