A weakening exchange rate, labour challenges and inflation stand in the way as challenges moving forward this year, according to Uni-Select.
In reporting its second-quarter financial results and six-month highlights for 2022, Uni-Select’s executive chair and chief executive officer Brian McManus noted that “we will face certain headwinds in the second half of the year, namely from currency translation effects and the impact of labour and operating cost inflation.”
However, that won’t stop the company from setting strong expectations for the rest of the year. In fact, McManus said Uni-Select expects stronger financial results in the second half compared to the same time in 2021.
That said, he cautioned the results won’t be at the same pace as the first half — in which the second quarter alone saw consolidated sales of $444.3 million, 6.7 per cent compared to Q2 2021, and all three business segments reported positive organic growth — noting that the company will “lap certain operational improvements and the timing of vendor rebates earned in the back half of last year.
“We continue to focus on driving operational excellence and look forward to further leveraging our improved balance sheet and operating results, to re-invest in our business and explore additional acquisition opportunities to further expand and consolidate our market position,” he added.
As for second quarter performance, McManus noted that the company was “pleased with our performance.”
He observed that the results reflected a higher level of vendor rebates and came from operational improvements that were sustained across the company’s three business units — the Canadian Automotive Group, FinishMaster and GSF Car Parts U.K.
The Canadian Automotive Group segment reported sales of $161 million, up nearly 11 per cent, which Uni-Select said was largely driven by organic growth of 13.8 per cent.
In just the last few months, Uni-Select announced two major jobbers were coming under its banner. Colonial Auto Parts in Atlantic Canada announced in May that it was making the switch. Last month, Uni-Select announced it was to acquire northern Ontario-based Maslack Supply.