The consumer goods industry has various forces that affect the overall profitability of all participants, such as: the availability of substitute products, the level of competition in the market, bargaining power with suppliers/buyers, and the level of entry barriers. Certain industries, such as airlines, have these forces working against them, which affects the bottom line. On the other hand, the stocks on our list have been operating successful businesses with high profitability margins over the past year.
Imperial Equities Inc. (TSXV: IEI) – $4.51
Drug Retailers
Imperial Equities Inc. (Imperial) is a Canada-based company engaged in development and redevelopment of commercial and industrial properties primarily in Edmonton and throughout Alberta. The Company operates in two business segments: pharmaceutical segment and real estate. The Company’s investments include properties with untapped potential, which the Company then renovates and improves the investment to maximize its value and, ultimately, its financial return. Imperial also distributes pharmaceutical products to the institutional and retail customers through its wholly-owned subsidiary, Imperial Distributors Canada Inc.
- Market Cap: $44,187,234
- Revenues (LTM): $71,030,700
- Operating Margin (LTM): 81.4%
- Profit Margin (LTM): 55.6%
Imvescor Restaurant Group Inc. (TSX: IRG) – $2.00
Restaurants & Bars
Imvescor Restaurant Group Inc. is a Canada-based company that operates franchised and corporate restaurants under the Pizza Delight, Mikes, Scores and Baton Rouge brand names. The Company operates through three segments: Franchised restaurants, Company-owned restaurants, and Manufacturing and retail. It also manufactures and sells branded food products, including the retail products marketed under the Commensal brand.
- Market Cap: $98,061,199
- Revenues (LTM): $45,151,000
- Operating Margin (LTM): 79.1%
- Profit Margin (LTM): 44.2%
Corby Spirit and Wine Ltd. (TSX: CSW.A) – $21.27
Distillers & Wineries
Corby Spirit and Wine Limited is a Canada-based wine marketing company and distributor of spirits and imported wines. With approximately 21% of spirits sales in Canada, Corby’s premium portfolio includes approximately 25 brands in Canada. The Company’s products are also exported for sale to the United States, Europe and other international markets. The Company also works with Hiram Walker & Sons Ltd., which is affiliated with Pernod Ricard. The Company portfolio includes; Wiser’s Canadian whiskies, Lamb’s rum, Polar Ice vodka, McGuinness liqueurs, ABSOLUT vodka, Chivas Regal, The Glenlivet and Ballantine’s Scotch whiskies, Jameson Irish whiskey, Beefeater gin, Malibu rum, Kahlúa liqueur, Mumm Champagne, and Jacob’s Creek.
- Market Cap: $609,920,318
- Revenues (LTM): $132,959,000
- Operating Margin (LTM): 78.6%
- Profit Margin (LTM): 58.8%
K-Bro Linen Inc. (TSX: KBL) – $52.99
Personal Services
K-Bro Linen Inc. is a Canada-based company that provides laundry and linen services to industries such as healthcare and hospitality. The Company’s services include reusable OR pack services (KOR Services), resident personal clothing programs, specialty linen purchasing, various textile testing and extensive customer site-based services, including floor-to-floor distribution and linen room management. Its technology includes continuous batch washers (tunnel washers), automated dryers and finishing equipment, computerized control systems, automated systems and energy conservation, material handling systems, and surgical linen pack rooms.
- Market Cap: $424,502,827
- Revenues (LTM): $137,989,000
- Operating Margin (LTM): 53.0%
- Profit Margin (LTM): 38.2%
Richelieu Hardware Ltd. (TSX: RCH) – $62.36
Home Furnishings
Richelieu Hardware Ltd is an importer, distributor and manufacturer of specialty hardware and related products. The Company offers over 100,000 products (SKUs) in a range of categories, including kitchen accessories, lighting systems, finishing and decorating products, functional hardware, ergonomic workstations, closet and kitchen storage solutions, sliding door systems, decorative and functional panels, high-pressure laminates, floor protection products, and window and door hardware. Its customers include kitchen and bathroom cabinet manufacturers, kitchen designers, residential and commercial woodworkers, home furnishing manufacturers, office furniture and ready-to-assemble furniture manufacturers, renovation superstores and purchasing groups.
- Market Cap: $1,217,597,794
- Revenues (LTM): $670,120,000
- Operating Margin (LTM): 43.0%
- Profit Margin (LTM): 31.9%
