Aegis Brands Reports Fourth Quarter and Year End Results
Executive Summary
- Aegis Brands reported a turnaround, posting Q4 net income of C$1.1 M (C$0.01 EPS) versus a loss in Q4 2024 and full‑year net income of C$3.0 M (C$0.04 EPS) versus a loss the prior year.
- System sales grew 12.1% YoY to C$34.7 M in Q4, with same‑store sales up 10.3%; full‑year system sales were flat at C$133.0 M, while same‑store sales fell 3.3%.
- EBITDA improved to C$1.9 M in Q4 (58% YoY) and C$6.4 M for the year, reflecting higher profitability after portfolio simplification and cost reductions.
Key Details
- Quarterly Financial Highlights
- System sales: C$34.7 M (+12.1% YoY)
- Same‑store sales: +10.3% YoY
- EBITDA Q4: C$1.9 M (up from C$1.2 M) – 58% increase
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Net income Q4: C$1.1 M (C$0.01 per share) vs. loss of C$0.2 M in Q4 2024
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Full‑Year Financial Highlights
- System sales FY2025: C$133.0 M (flat YoY)
- Same‑store sales FY2025: –3.3% YoY
- EBITDA FY2025: C$6.4 M vs. C$6.1 M in FY2024
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Net income FY2025: C$3.0 M (C$0.04 per share) vs. loss of C$1.3 M in FY2024
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Operational Updates
- Opened three new St. Louis Bar & Grill locations and closed three under‑performing restaurants; total franchised units remained at 81 year‑end.
- Introduced “School of Extraordinary Hospitality” franchisee development program and Multi‑Unit Franchisee program.
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Ongoing renovations delivering post‑renovation sales uplift; additional renovations planned for 2026.
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Strategic Outlook for 2026
- Expand promotional calendar to increase traffic and top‑line performance.
- Focus on operational excellence, franchisee development, disciplined new store growth (Ontario & Atlantic Canada priority).
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Continue CPG expansion: St. Louis products now in >1,000 retail doors across Ontario and Atlantic Canada (seven SKUs).
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Non‑IFRS Measures – Reconciliations to IFRS provided for net income, EBITDA, adjusted EBITDA, and adjusted net earnings per share (see release tables).
Notable Quotes
“We've aligned our overhead with a focused franchisor model and improved store‑level economics across the system,” said Steven Pelton, President and CEO.
“By strengthening franchisee capability, accelerating renovations, expanding the promotional schedule and returning to disciplined new store growth, we believe the foundation is in place for continued same‑store sales and EBITDA improvement year‑over‑year.”