Winnipeg, Manitoba — The Boyd Group announced its third-quarter results yesterday, revealing both good and bad news for the North American collision repair scene.
Overall, Boyd Group sales increased 28.4 percent from the same period of 2020, including same-store increases of 10.7 percent. Gross profit increased by 19.6 percent compared to the third quarter of 2020. Net earnings decreased to $0.4 million compared to $15.9 million in 2020.
Those gains did not come without supply-chain and labour shortage related-challenges, though. The company said same-store increases in Canada we much lower than that of the U.S, but demand in the north is slowly crawling back.
“Demand in Canada increased slowly and gradually during the third quarter of 2021 as restrictions were eased and removed, but remained well below pre-pandemic levels,” said Tim O’Day, president and CEO of the Boyd Group. “We faced rapidly increasing supply chain disruptions for original equipment and aftermarket parts in both the Canadian and U.S. markets, which quickly resulted in a negative impact on margins as a higher percentage of parts had to be sourced from non-primary suppliers to complete repairs.”
O’Day said the company expects margins to recover in the proceeding quarters.
“Despite these near-term market challenges, our leadership position and strong balance sheet position us well to successfully execute on our plan to double the size of our business by 2025 and deliver attractive returns to our shareholders.