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BMTC Group Inc. Management Reports 2025
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Management Reports
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GROUPE
BMC
QUARTERLY MANAGEMENT REPORT
AS AT APRIL 30, 2025
Notice related to the review of interim financial statements
The consolidated interim financial statements for the period ended April 30th, 2025 and 2024 have not been reviewed by the auditors of the Company.
BOARD OF DIRECTORS
YVES DES GROSEILLERS
Chairman of the Board
MARIE-BERTHE DES GROSEILLERS
President and Chief Executive Officer of the Company
ANDRÉ BÉRARD/*
Lead Director of the Company and Director of companies
LUCIEN BOUCHARD/*
Partner
Davies Ward Phillips & Vineberg
LLP (Law firm)
CHARLES DES GROSEILLERS
Director
ANNE-MARIE LECLAIR**
Senior Strategic Advisor
Director
GABRIEL CASTIGLIO/**
Executive Vice President
Chief Legal Officer and Corporate Secretary
Fiera Capital
(Investment management company)
TONY FIONDA/**
Senior Vice President
Remcorp Inc.
(Investment company)
GENERAL INFORMATION
AUDITORS
PricewaterhouseCoopers LLP/s.r.l./s.e.n.c.r.l.
CORPORATE SECRETARY
Michèle Des Groseillers
[email protected]
LEGAL ADVISORS
Norton Rose Fulbright LLP ("Norton")
Davis Ward Phillips & Vineberg LLP ("Davies")
BANKERS
National Bank of Canada and Desjardins
REGISTRAR AND TRANSFER AGENT
Computershare Investor Services Inc. The Direct Registration System (DRS) allows your securities to be held in "book-entry" form without having a physical security certificate issued as evidence of ownership. Instead, your securities are held in your name and registered electronically in our records, which are maintained by our transfer agent Computershare. If you are a registered holder of units and wish to convert physical securities to DRS, go to: www.computershare.com/investorcentrecanada.
STOCK LISTING
Common shares are listed on the Toronto Stock Exchange under the symbol GBT.TO and CUSIP number 05561N208.
HEAD OFFICE
8500 Place Marien
Montréal-Est (Quebec) H1B 5W8
Tel: (514) 648-5757
- Member of the Audit Committee
** Member of the Human Resources and Corporate Governance Committee
*** Member of the Investment Committee
BMTC Group Inc.
BMTC Group Inc. (the "Company"), is a Company incorporated in accordance with Article 140 of the Business Corporations Act (Quebec). Its Common Shares are listed on the Toronto Stock Exchange.
Through its Tanguay division, its subsidiaries Le Corbusier-Concorde S.E.C., Le Commandité Corbusier-Concorde Inc. and 9519-2340 Québec inc., the Company manages and operates a furniture and household and electronic appliance retail sales networks in Quebec, while also overseeing the management of its real estate division.
FINANCIAL HIGHLIGHTS
For the periods ended April 30, 2025 and 2024
(Unaudited and in thousands of dollars, except per share amounts)
| April 30, 2025 | April 30, 2024 | |
|---|---|---|
| $ | $ | |
| Operations | ||
| Revenue | 150 124 | 137 144 |
| Net earnings | (12 933) | 1 461 |
| Financial position | ||
| Cash, investments, net of bank overdraft | 199 622 | 180 694 |
| Total assets | 724 556 | 634 105 |
| Equity | 516 143 | 476 671 |
| Per-share information | ||
| Net earnings | (0,40) | 0,04 |
| Net book value | 15,97 | 14,64 |
| Stock market value | ||
| Period high | 13,00 | 14,86 |
| Period low | 11,18 | 13,00 |
| Number of shares outstanding | ||
| Common shares | 32 328 000 | 32 562 410 |
Quarterly Management Report *
Caution regarding forward-looking statements
This Quarterly Management Report contains certain forward-looking statements with respect to the Company. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", as well as the opposites of these terms and similar terminology, including references to assumptions.
Forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, which the Company has identified in the 2025 Annual Information Form under "Narrative Description of the Business - Risk Factors", and other risks detailed from time to time in the Company's continuous disclosure documents.
The reader is cautioned that the factors we refer to above are not exhaustive of the factors that may affect any of the Company's forward-looking statements. The reader is also cautioned to consider these and other factors carefully and not to put undue reliance on forward-looking statements.
The Company made a number of assumptions in making forward-looking statements in this Quarterly Management Report. The Company considers the assumptions on which these forward-looking statements are based to be reasonable.
These statements reflect current expectations regarding future events and operating performance and speak only as of the date of release of this Quarterly Management Report, and represent the Company's expectations as of that date. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.
Non-International Financial Reporting Standards (IFRS) financial measures
The Company discloses adjusted net earnings, which includes or excludes certain elements that are not considered representative or recurrent of the performance measures and financial recurrence of the Company. Management believes that this measure is useful in understanding and analyzing the operational performance of the Company and that it can provide additional information.
Adjusted net earnings as well as same store revenues are not an earnings measure recognized by IFRS and do not have a standardized meanings prescribed by IFRS. Therefore, adjusted net earnings and same store revenues as discussed in this Quarterly Management Report may not be compared to similar measures presented by other issuers. These measures of performance should not be considered as alternatives to indicators of performance calculated according to IFRS, but rather as a source of additional information.
The Company discloses in this MD&A under the section "Results" a reconciliation between net earnings and adjusted net earnings.
- The financial information, unless otherwise indicated, is in Canadian dollars and has been prepared in accordance with IFRS Accounting Standards (IFRS).
Results
For the period ended April 30, 2025, the Company's revenues increased by $12,980,000 to $150,124,000 compared to $137,144,000 recorded for the corresponding period of 2024, an increase of 9.5%. This increase is primarily attributable to the growth in commercial revenue from the Tanguay division, whose revenue rose by $13,215,000 or 9.7%. Comparable store sales also increased by 10.5% during the period. In contrast, investment property revenue from the real estate division declined by ($235,000) compared to the corresponding period in 2024, representing a decrease of 98.3%. Net loss for the period ended April 30, 2025, amounted to ($12,933,000) compared to the net earnings of $1,461,000 recorded for the corresponding period of 2024. Basic net earnings per share amounted to ($0.40) compared to $0.04 recorded for the corresponding period of 2024.
The net loss recorded is comprised of a loss of ($3,717,000) from the real estate division and a loss of ($9,216,000) from the Tanguay division, compared to a net loss of ($419,000) and net income of $1,880,000, respectively, for the corresponding period in 2024.
The variation in the net loss of the real estate division is primarily attributable to the ongoing expansion and optimization work, which is temporarily increasing operating expenses. These projects are expected to be completed during the year, which should allow for a gradual return to improved financial performance for the division.
The significant variation in the net income of the Tanguay division is primarily explained by the unrealized loss on investments, net of tax, which amounted to ($7,878,000) during the period, compared to a unrealized gain net of tax of $7,993,000 for the corresponding period, representing a variation of ($15,861,000). Stronger operational result helped to partially counterbalance the negative effect of the unrealized loss. Indeed, the operating loss, net of tax, amounted to ($2,669,000) for the period ended April 30, 2025, compared to ($8,345,000) for the corresponding period. This improvement mainly stems from the synergies generated by the operational and commercial reorganization implemented in May 2023, the completion of the network revitalization program, as well as the sales growth observed during the period.
For the period ended April 30, 2025, the share repurchase program had no impact on basic net earnings per share. As for the corresponding period of 2024, the share repurchase program contributed to an increase of $0.01 on basic net earnings per share.
The variation net earnings would be ($14,394,000) or ($0.44) per basic share for the period ended April 30, 2025, when compared to the period ended April 30, 2024, is explained as follows:
(Unaudited and $ in thousands)
| April 30, 2025 | April 30, 2024 | |
|---|---|---|
| Net earnings | (12 933) | 1 461 |
| Net earnings prior period | 1 461 | |
| Variation | (14 394) |
The variations in net earnings is allocated as follows :
| (Unaudited and $ in thousands) | ||||
|---|---|---|---|---|
| Increase (decrease) in retail operations | Increase (decrease) in investments | Increase (decrease) in investment properties | Increase (decrease) in adjusted net earnings | |
| As at April 30, 2025 | 5 677 | (16 773) | (3 298) | (14 394) |
Annual financial information
($ in thousands, except for per share amounts)
| January 31, 2025 | January 31, 2024 | |
|---|---|---|
| Revenue | 602 701 | 578 945 |
| Net earnings | 43 909 | 47 427 |
| Total assets | 724 945 | 621 029 |
| Net earnings per share basic and diluted | 1,35 | 1,44 |
| Dividends per share | 0,36 | 0,36 |
Financial position and dividends
Cash and investments, net of bank overdraft, decreased by $5,702,000 during the period ended April 30, 2025. This decrease is mainly due to the decrease in the unrealized value on the investments as of April 30, 2025. Financial investments consist of treasuries bearing interest, common and preferred shares, which at the close of the period ended April 30, 2025, had a market value of $199,622,000 (including cash).
As at April 30, 2025, working capital showed a deficit of ($10,342,000) a decrease of $2,319,000 in the deficit compared to the year ended January 31, 2025. Despite the working capital deficit, the Company has access to an unused credit facility as at April 30, 2025, and holds interest-bearing cash equivalents in its investment portfolio. Management considers these resources sufficient to meet short-term liquidity needs and financial obligations. The Company's shareholders' equity decreased from $529,507,000 as at January 31, 2025, to $516,143,000 as at April 30, 2025. As at April 30, 2025, the book value per share stood at $15.97 compared to $16.36 as at January 31, 2025.
Pursuant to the normal course issuer-bid put in place on April 15, 2024, and renewed on April 15, 2025, accordingly, 34,300 common shares were repurchased and cancelled by the Company. As a result of this change, the Company had, as at April 30, 2025, 32,328,000 common shares issued and outstanding.
During the period ended April 30, 2025, no options were granted. The Company may still grant pursuant to the Stock Option Plan a total of 5,710,864 options, representing $17.67\%$ of the issued and outstanding shares of the Company.
A semi-annual eligible dividend of $0.18 per Common Share has been declared to holders registered at the close of business on June 20, 2025, which will be paid on June 27, 2025.
Company pension plans and treatment of future actuarial gains and losses
The pension expense for all plans for the period ended April 30, 2025, amounted to $1,401,000 (compared to $1,441,000 for the period ended April 30, 2024).
Contributions paid by the Company for all plans for the period ended April 30, 2025, amounted to $1,201,000 (compared to $1,216,000 for the period ended April 30, 2024).
Related party transactions
The Company is bound by leases expiring in December 2027 and 2034 for which a lease liability of $5,410,000 is recorded as at April 30, 2025. For the period ended April 30, 2025, depreciation of $179,000 relating to the right-of-use asset and a $81,000 interest expense were recognized in earnings in connection with these leases.
Lease liability
Payments due by period
(Unaudited and $ in thousands)
| Carrying amount | Contractual cash flows | Under 1 year | 2 - 5 years | After 5 years | |
|---|---|---|---|---|---|
| Lease liability | 17 204 | 19 583 | 8 239 | 7 808 | 3 536 |
Accounting policies and accounting estimates
The accounting policies used in preparing the unaudited interim consolidated financial statements are described in Note 3 to the unaudited interim consolidated financial statements.
The main estimates discuss allowances on inventories. Inventory allowances are taken for obsolete and/or damaged products as well as for slow inventory turnover items. The allowances are based on many years of historic experience. Rebates for unsold merchandise are deducted from the value of the inventories at the date of the consolidated financial statements.
Financial instruments
The Company operates retail outlets in 24 locations across Quebec. A significant portion of the Company's sales are realized through the offering of financing solutions, by third-party credit providers, to the Company's customers. The cost of financing these sales is assumed by the Company, and is expensed, as the associated sales are realized. The Company assumes no credit risk in these transactions. The Company's working capital is composed primarily of trade and other receivables, inventory and cash, while its short-term liabilities include bank overdraft, suppliers of goods and services, customer deposits, employee benefits liabilities and lease liability. The change in working capital reflects the associated fluctuations in all of the constituent accounts incurred during the normal course of the Company's activities. The Company has a positive cash position, which is invested in various financial instruments.
The Company records its investments at market value as indicated in Note 3 and Note 8 of the unaudited interim consolidated financial statements as at April 30, 2025. The Company has no hedges against its investments in US funds and assumes 100% of any fluctuations in the markets for these investments. Furthermore, the Company assumes the risks interest rate fluctuations have on its fixed-income investments, as well as the risks stock market fluctuations have on the value of investments in publicly traded companies.
The Company owns most of its stores and distribution centers, such that commitments regarding leasing contracts and lease liabilities are relatively insignificant with regard to its overall activities as detailed in Note 9 of the unaudited interim consolidated financial statements as of April 30, 2025. The Company holds no hedging contracts or any other type of derivative products.
Quarterly results
(Unaudited and $ in thousands, except for per share amounts)
| April 30, 2025 | April 30, 2024 | July 31, 2024 | July 31, 2023 | |
|---|---|---|---|---|
| $ | $ | $ | $ | |
| Revenue | 150 124 | 137 144 | 169 394 | 169 075 |
| Net earnings | (12 933) | 1 461 | 19 464 | 3 363 |
| Net basic earnings per share | (0,40) | 0,04 | 0,60 | 0,10 |
| October 31, 2024 | October 31, 2023 | January 31, 2025 | January 31, 2024 | |
| $ | $ | $ | $ | |
| Revenue | 143 781 | 140 078 | 152 382 | 134 690 |
| Net earnings | 8 494 | (8 449) | 14 490 | 14 496 |
| Net basic earnings per share | 0,26 | (0,25) | 0,45 | 0,44 |
Operations
Tanguay division
During the year ended January 31, 2025, the Company completed its revitalization program across its entire network for a total amount of $18,692,000, which was $1,308,000 less than the anticipated $20,000,000. The revitalization program involved converting its former Brault & Martineau and EconoMax stores into Tanguay stores in order to provide a better product and service offering and a unique customer experience in its market. This program resulted in a significant modernization of the store network, the introduction of a broader and more targeted product offering, and a more attractive in-store presentation that better meets customer expectations.
The Company is now focusing its efforts on growing its market share, stabilizing operations across its network, and maximizing the synergies generated by the operational and commercial reorganization implemented in May 2023.
Real estate division
As part of its long-term growth strategy and commitment to sustainable value creation, the Company undertook a strategic diversification into the real estate sector during the past year. This initiative is intended to optimize the value of its real estate portfolio while creating recurring, complementary revenue streams alongside its core retail operations. The strategy includes the development of investment properties, strategic site repurposing, and the selective acquisition of assets with strong long-term value potential.
On April 15th, 2024, the Company finalised the purchase of the RONA distribution center bearing the civic address 2055, boulevard des Entreprises in the city of Terrebonne. The transaction was in the amount of $96,000,000 before taxes which includes a lease-back agreement with RONA. The transaction was paid in full in cash from investments held by the Company. The Company intends to continue on a long-term basis to collect lease revenues from this property. The Company is currently pursuing extension and optimization work at this property, aimed at improving its operational efficiency and, consequently, creating greater rental value. During the year ending January 31, 2025, the Company made commitments totaling $28,810,000 regarding the extension. As of the period ended April 30, 2025, an amount of $12,437,000 had been committed and capitalized in the cost of investment properties under construction. Of this amount, $10,465,000 remained unpaid as of the end of the period. The Company also incurred costs of $20,125,000 for the optimization of this center, of which $10,238,000 remains outstanding at the end of the period. Consequently, a decrease in the financial assets used to finance this project is expected during the coming quarters. The Company estimates that the project will be completed by the end of summer 2025 and will be available for lease at that time.
At the end of April 2024, the Company finalised the purchase of land in Lévis located in the Quebec region, for an amount of $20,223,000. As of January 31, 2025, this land was transferred to the Company's real estate division, in accordance with the Company's intention to hold it for real estate development purposes or as long-term investment.
The Company entered into a partnership agreement with Urbania, who will be responsible for the development and construction of its property at 500 boulevard Le Corbusier in Laval into several residential rental towers. The Company intends to finance this real estate project at 75% with a long-term mortgage. The estimated value of the entire project is approximately $600,000,000. The Company created a new subsidiary, Le Corbusier-Concorde S.E.C. for this real estate project on January 31st, 2022. This real estate project was supposed to begin in the summer of 2025, but the Company is still waiting for the approval of all permits by the City of Laval. In fact, the Company is facing delays beyond its control, resulting in additional delays related to administrative procedures governed by the City of Laval. This situation is preventing the start of construction work, initially planned for June 2025, despite the Company's sustained and continued efforts to move the project forward. At this date, the new expected start date is March 2026. Once construction begins, the project should span over a period of 8 to 10 years with the construction of 5 rental residential towers for a total of approximately 1,200 doors.
The Company intends to proceed with the real estate development of several rental residential towers on its property located at 125 boul. Desjardins Est in Sainte-Thérèse. This real estate project is currently in the exploratory phase and the Company has identified a potential developer for the project. We are currently evaluating the initial budget estimates and financial models to complete the project's profitability analysis. At the same time, the Company has initiated preliminary steps with the City of Ste-Thérèse, with a view to proactive planning aimed at optimizing completion times. If the project proves profitable, we estimate that we will be able to obtain the necessary permits in December 2025 and begin construction in March 2026. Following the profitability analysis and the conclusion of an agreement with a potential developer, the Company should be able to announce the details of this real estate project during in the coming quarters.
These investments are part of the Company's strategy to increase the value of its real estate assets while generating new sources of recurring revenue.
Risk factors and market tendencies
The Company operates a furniture, electronic and household appliance retail business, and is therefore subject to many risk factors such as:
- Sensitivity to general economic conditions
- Reliance on key personnel
- Investment portfolio risks
- Third-party credit providers for financing solutions to clients
- Labour relations with employees, some of whom are unionized
- Maintaining profitability and managing growth
- Highly competitive nature of the retail industry
- Effectiveness of its marketing programs
- Capacity to anticipate changes in fashion trends and consumer tastes
- Retention of senior management
- Interest rates fluctuation risks
- Risks related to real estate sector concentration
- Risks related to tariff policies and reciprocal measures
The Company is also dependent on its management information systems, its distribution operations, and its suppliers.
For a number of years, we have seen an increasing presence of strong competitors operating on a national and international level.
A significant portion of sales are realized using financing solutions offered by third-party credit providers. A significant increase in interest rates or a tightening of credit conditions could have a significant impact on the Company's sales. There are no guarantees the Company will be able to continue procuring such advantageous financing solutions for its customers, which in the past has permitted the Company to maintain its growth.
It is impossible to isolate and measure the importance of each individual risk to which the Company is exposed. In the past, the Company has managed to adapt to these changes and maintain its market share notably by aggressive marketing campaigns and efficient management.
Management discussion and outlook for the future of the Company
In a constantly evolving retail environment, forecasting consumer behavior is an increasing challenge. Preferences shift rapidly, economic conditions influence both purchasing power and willingness to spend, and consumption habits are increasingly migrating toward digital channels.
Despite these uncertainties, management believes that the Company succeeds in setting itself apart through a set of complementary strengths. Its well-established brand image, widely recognized customer service quality, and its network of stores and distribution across Québec ensure strong local presence. In addition, its continuously improving digital platform enables it to respond effectively to the evolving expectations of consumers. This combination of factors allows the Company to maintain a solid market position and stable performance, even in a complex and ever-changing commercial environment.
The diversification into the real estate sector, although outside the Company's core operations, presents natural synergies with its retail network, particularly in asset management and the generation of stable cash flows. Management believes that this diversification will enhance the Company's financial resilience, create new growth levers, and reduce its reliance on the retail sector.
The results for the first quarter of 2026 were promising and management remains confident that, thanks to its effective management, the operational and commercial reorganization carried out in May 2023, the solidity of its financial structure and the diversification undertaken in the real estate sector, the Company will be able to maintain its objectives which consist of increasing its market share in Quebec and its profitability, even in a more difficult market.
Disclosure controls and procedures (DCPs) and internal controls over financial reporting (ICRF)
The Company's management evaluated, as at January 31, 2025, the effectiveness of the design and operation of its DCPs and ICFR, as defined under National Instrument 52-109 - Certification of Disclosure in Issuers' Annual and Interim Filings. The evaluation was performed under the supervision of the Company's President and Chief Executive Officer (CEO) as well as the Chief Financial Officer (CFO). Based on such evaluation of ICFR, the President and CEO and CFO have concluded that the Company's DCPs and ICFR were effective as at January 31, 2025.
No changes were made in the Company's ICFR during the period beginning on February 1, 2025 and ended April 30, 2025, which have materially affected, or are reasonably likely to materially affect, the Company's ICFR.
Other information
This Quarterly Management Report for the period ended April 30, 2025 provides an analysis of the consolidated results of operations, financial position, and cash flows of the Company and its subsidiary. Additional information relating to the Company is available on the Company's website at www.bmtc.ca as well as on SEDAR at www.sedar.com.
This Quarterly Management Report is intended to assist in the understanding and assessment of significant changes and trends, as well as risks and uncertainties, related to the results of operations and financial position of the Company.
(s) Marie-Berthe Des Groseillers
Marie-Berthe Des Groseillers
President and Chief Executive Officer
June 5th, 2025
BMTC Group Inc.
Consolidated Statements of Earnings
For the periods ended April 30, 2025 and 2024
(Unaudited and in thousands of Canadian dollars, except per share data)
| Notes | April 30, 2025 | April 30, 2024 | |
|---|---|---|---|
| $ | $ | ||
| Revenue | 4 | 150 124 | 137 144 |
| Cost of sales | (92 947) | (88 103) | |
| Gross profit | 57 177 | 49 041 | |
| Other (expenses) income | 69 | 26 | |
| Operating expenses | 5 | (57 821) | (53 074) |
| Administrative expenses | 5 | (8 067) | (7 891) |
| Gains (losses) on disposals of property, plant and equipment | 9 | 6 | - |
| Operating earnings (loss) | (8 636) | (11 898) | |
| Change in fair value of financial assets | 17 | (9 081) | 9 122 |
| Investment income | 5 | 1 612 | 2 940 |
| Net earnings (loss) before income tax expense | (16 105) | 164 | |
| Income tax expense | 6 | 3 172 | 1 297 |
| Net earnings (loss) and comprehensive income | (12 933) | 1 461 | |
| Net earnings (loss) per share | |||
| Basic and diluted | 18 | (0,40) | 0,04 |
The accompanying notes are an integral part of the interim unaudited consolidated financial statements.
BMTC Group Inc.
Consolidated Statements of Changes in Shareholders' Equity
For the periods ended April 30, 2025 and 2024
(Unaudited and in thousands of Canadian dollars)
| Notes | Capital stock | Retained earnings | Total shareholders' equity | |
|---|---|---|---|---|
| Balance as at February 1, 2025 | $ 2 563 | $ 526 944 | $ 529 507 | |
| Share redemption | 14 | (2) | (429) | (431) |
| Transactions with shareholders | (2) | (429) | (431) | |
| Net earnings & Comprehensive income | - | (12 933) | (12 933) | |
| Balance as at April 30, 2025 | 2 561 | 513 582 | 516 143 | |
| Notes | Capital stock | Retained earnings | Total shareholders' equity | |
| --- | --- | --- | --- | --- |
| Balance as at February 1, 2024 | $ - | $ 2 578 | $ 2 578 | |
| Share redemption | 14 | (10) | (1 677) | (1 687) |
| Transactions with shareholders | (10) | (1 677) | (1 687) | |
| Net Earnings & Comprehensive income | - | 1 461 | 1 461 | |
| Balance as at April 30, 2024 | (10) | 2 362 | 2 352 |
The accompanying notes are an integral part of the interim unaudited consolidated financial statements.
BMTC Group Inc.
Consolidated Statements of Cash Flows
For the periods ended April 30, 2025 and 2024
(Unaudited and in thousands of Canadian dollars)
| Notes | April 30, 2025 | April 30, 2024 | |
|---|---|---|---|
| $ | $ | ||
| OPERATING ACTIVITIES | |||
| Net earnings before income tax expense | (16 105) | 164 | |
| Losses (gains) on disposals of property, plant and equipment | 9 | (6) | - |
| Change in fair value of financial assets | 17 | 9 081 | (9 122) |
| Adjustments | 7 | 4 747 | (248) |
| Net changes in working capital | 7 | 7 654 | 30 059 |
| Income taxes paid (recovered) | 2 668 | (1 692) | |
| Cash flow from operating activities | 8 039 | 19 161 | |
| INVESTING ACTIVITIES | |||
| Acquisition of other financial assets | (1 528) | (484) | |
| Proceeds from disposal other financial assets | 15 001 | 117 618 | |
| Purchase of property, plant and equipment | 9 | (201) | (20 262) |
| Purchase of investment properties | 10 | (4 161) | (91 054) |
| Proceeds from disposal of property, plant and equipment | 9 | 36 | 29 |
| Interest received | 5 | 315 | 1 267 |
| Dividends received | 5 | 1 297 | 1 673 |
| Cash flow from investing activities | 10 759 | 8 787 | |
| FINANCING ACTIVITIES | |||
| Payments for share redemption | 14 | (431) | (1 687) |
| Interest paid | 12 | (262) | (84) |
| Payment of lease liabilities | 12 | (1 253) | (813) |
| Cash flow from financing activities | (1 946) | (2 584) | |
| Net change in cash | 16 852 | 25 364 | |
| Cash (bank overdraft), beginning of period | (13 625) | (21 419) | |
| Cash (bank overdraft), end of period | 3 227 | 3 945 |
The accompanying notes are an integral part of the interim unaudited consolidated financial statements.
BMTC Group Inc.
Consolidated Statements of Financial Position
(Unaudited and in thousands of Canadian dollars)
| Notes | April 30, 2025 | January 31, 2025 | |
|---|---|---|---|
| ASSETS | $ | $ | |
| Current | |||
| Cash | 3 227 | 1 501 | |
| Trade and other receivables | 2 640 | 8 112 | |
| Current tax assets | 6 812 | 7 512 | |
| Inventory | 113 397 | 95 540 | |
| Prepaid expenses | 6 716 | 2 136 | |
| 132 792 | 114 801 | ||
| Assets classified as held for sale | 10 | 10 172 | 10 172 |
| Total current assets | 142 964 | 124 973 | |
| Non-current | |||
| Other financial assets | 8 | 196 395 | 218 949 |
| Property, plant and equipment | 9 | 120 622 | 122 796 |
| Investment properties | 10 | 134 559 | 127 005 |
| Intangible assets | 11 | 6 037 | 7 043 |
| Defined benefit plans | 123 979 | 124 179 | |
| Total non-current assets | 581 592 | 599 972 | |
| Total assets | 724 556 | 724 945 | |
| LIABILITIES | |||
| Current | |||
| Bank overdraft | 13 | - | 15 126 |
| Trade and other payables | 15 | 145 843 | 115 993 |
| Lease liabilities | 12 | 7 463 | 6 515 |
| Total current liabilities | 153 306 | 137 634 | |
| Non-current | |||
| Lease liabilities | 12 | 9 741 | 11 234 |
| Deferred tax liabilities | 6 | 45 366 | 46 570 |
| Total non-current liabilities | 55 107 | 57 804 | |
| Total liabilities | 208 413 | 195 438 | |
| SHAREHOLDERS' EQUITY | |||
| Capital stock | 14 | 2 561 | 2 563 |
| Retained earnings | 513 582 | 526 944 | |
| Total shareholders' equity | 516 143 | 529 507 | |
| Total liabilities and shareholders' equity | 724 556 | 724 945 |
The accompanying notes are an integral part of the interim unaudited consolidated financial statements.
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
- GOVERNING STATUTES AND NATURE OF OPERATIONS
BMTC Group Inc. (hereinafter "BMTC") is a company governed by the Business Corporations Act (Quebec). Its registered office and principal place of business is located at 8500 Place Marien, Montréal East, Quebec, H1B 5W8. Its common shares are listed on the Toronto Stock Exchange. The BMTC Group Inc. is formed of the Tanguay division and its subsidiaries Le Corbusier-Concorde S.E.C., Commandité Le Corbusier-Concorde Inc. and 9519-2340 Québec Inc. (collectively designated as the "Company"). The Company manages and operates a retail network of furniture, household appliances and electronic products, in Quebec, while also overseeing the management of its real estate division.
- GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IFRS
These unaudited interim consolidated financial statements of the Company have been prepared in accordance with IFRS Accounting Standards (IFRS) as issued by the International Accounting Standard Board.
The unaudited interim consolidate financial statements have been prepared on the historical cost basis, except for certain financial instruments and the liability relating to share-based payments, which are established at fair value, and post-employment benefit assets or liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets, less an adjustment to reflect application of the asset limit.
- MATERIAL ACCOUNTING POLICIES
The accounting policies specified below have been applied consistently throughout all periods presented in the unaudited interim consolidated financial statements.
3.1 Basis of consolidation
The unaudited interim consolidated financial statements include the accounts of BMTC, and its wholly-owned subsidiaries Le Corbusier-Concorde S.E.C., Commandité Le Corbusier-Concorde Inc. and 9519-2340 Québec Inc.
Asset and liability balances and revenues and expenses from transactions between group companies, including unrealized gains and losses on transactions between consolidated entities, are eliminated in preparing the unaudited interim consolidated financial statements.
3.2 Foreign currency translation
The unaudited interim consolidated statement of financial position is presented in Canadian dollars, which is also the functional currency of the Company.
Foreign currency transactions are translated into the Company's functional currency, using the exchange rates prevailing at the dates of the transactions. Foreign currency monetary assets and liabilities are translated into the functional currency using the exchange rates in effect at the reporting date. Other foreign currency non-monetary financial assets that are measured at fair value are translated into the functional currency using the exchange rate in effect on the date of determination of fair value. Foreign exchange gains and losses resulting from the settlement of such transactions and from the remeasurement of monetary items at the reporting date are recognized in earnings.
BMTC Group Inc. Notes to the Consolidated Financial Statements (Unaudited and in thousands of dollars, except per share amounts)
3. MATERIAL ACCOUNTING POLICIES (Continued)
The realized and unrealized appreciation of other financial assets classified at fair value through profit or loss recognized directly in profit or loss includes the related exchange component.
Non-monetary items measured at historical cost are translated using the exchange rates at the date of the transaction.
3.3 Segment reporting
In accordance with IFRS 8, Operating Segments, the Company presents and discloses information that is regularly reviewed by the President and Chief Executive Officer in assessing performance. The Company comprises two main business operations which are Retail and Real Estate operations. Details of the Company's two reportables operating segments are provided in Note 4.
3.4 Revenue recognition
Revenue from merchandise sales is measured at the amount of the consideration for which the Company expects to receive in exchange for the merchandise and is presented in earnings net of estimated returns, recorded using the most likely amount method, and excluding sales taxes. Revenue is recognized when the control of the goods has been transferred to the customer either upon delivery or when the customer collects the ordered goods.
Revenue from extended service contracts is recognized at the time of the sale at the net amount of costs incurred by the Company with the service suppliers, who will provide the services required by the Company's customers.
Investment income is recognized using the accrual basis of accounting, as follows:
- Interest is recognized based on the number of days the investment was held during the year and is calculated using the effective interest method;
- Dividends on listed share investments are recognized when the right to receive the payment is established.
Rental income from investment properties is recorded on a straight-line basis, over the term of the lease, and is included in revenue.
3.5 Income taxes
Income tax expense comprises the sum of deferred tax and current tax. Income tax is recognized in earnings except to the extent it relates to items recognized in other comprehensive income or directly in shareholders' equity.
BMTC Group Inc. Notes to the Consolidated Financial Statements (Unaudited and in thousands of dollars, except per share amounts)
3. MATERIAL ACCOUNTING POLICIES (Continued)
Current income tax assets or liabilities comprise those obligations to, or claims from, tax authorities relating to the current or prior reporting periods, that are unpaid at the reporting date. Current tax is payable on taxable income, which differs from earnings in the consolidated financial statements. The calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.
Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill or of an asset or liability unless the related transaction is a business combination or affects tax or accounting income.
Deferred tax assets and liabilities are calculated, without discounting, based on tax rates and tax laws that have been enacted or substantively enacted at the end of the reporting period, and which will apply when it is expected that the related deferred income tax asset will be realized or the deferred income tax liability settled. Deferred tax assets are recognized to the extent that it is probable that they will be able to be utilized against future taxable income. Deferred tax liabilities are always provided for in full.
Deferred tax assets and liabilities are offset only when the Company has a right and intention to set off current tax assets and liabilities levied by the same taxation authority.
Changes in deferred tax assets or liabilities are recognized as a component of tax expense, except where they relate to items that are recognized in other comprehensive income or directly in shareholders' equity, in which case the related deferred tax is also recognized in comprehensive income or shareholders' equity, respectively.
3.6 Inventory
Inventory, which is composed almost exclusively of finished goods for retail sale, is valued at the lower of cost and net realizable value. Cost is determined by the weighted average method.
The cost of inventories comprises all costs of purchase and other costs incurred in bringing the inventories to their present location and condition. The net realizable value is estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale.
3.7 Vendor rebates
Cash considerations received from vendors are a reduction of the price of the vendors' products and are accounted for as a reduction of cost of sales and related inventory, respectively, in the Company's consolidated statement of earnings and comprehensive income and consolidated statements of financial position.
Rebates are recognized when they are considered probable and can be reasonably estimated.
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
3. MATERIAL ACCOUNTING POLICIES (Continued)
3.8 Property, plant and equipment
Property, plant and equipment are carried at acquisition cost less any accumulated depreciation and any accumulated impairment losses. Items of property, plant and equipment with different useful lives are depreciated separately.
A transfer from investment properties to property, plant and equipment is recognized when there is a change in the use of the property and it becomes owner-occupied by the Company. The transfer is then made at the carrying amount.
Depreciation commences when an item of property, plant and equipment is available for use using the straight-line method over the following periods, in order to depreciate its cost less the residual value over its estimated useful life.
| Periods | |
|---|---|
| Land | Not depreciated |
| Parking lots | 20 years |
| Buildings | 2 to 50 years |
| Signs | 5 years |
| Leasehold improvements | 2 to 5 years |
| Automotive equipment | 7 to 15 years |
| Computer equipment | 2 to 5 years |
| Furniture and equipment | 5 years |
| Leased property | 1 to 10 years |
| Leased automotive equipment | 5 to 7 years |
The depreciation method, useful lives and residual values are reviewed annually.
3.9 Investment properties
Assets held to earn rental income, capital appreciation, or both, which are not occupied by the Company, are classified as investment properties. Investment properties are carried, at the acquisition cost less any accumulated depreciation and any accumulated impairment losses. Depreciation commences as soon as an asset is available for used, using the straight-line method, according to the following periods:
| Periods | |
|---|---|
| Land | Not depreciated |
| Parking lots | 20 years |
| Buildings | 2 to 50 years |
| Furniture and equipment | 5 years |
| Computer equipment | 2 to 5 years |
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
3. MATERIAL ACCOUNTING POLICIES (Continued)
The depreciation method, useful lives and residual values are reviewed annually.
Transfers to the "Investment properties" category are made at the carrying amount, on the date of the transfer, only in cases when there is a change of use. If an asset owner-occupied by the Company becomes an investment property, it is accounted for using the accounting methods applicable to investment properties.
3.10 Intangible assets
Intangible assets with a finite useful life are recognized at cost and are amortized on a straight-line basis over their useful life. The amortization method and the estimated useful lives are reviewed annually.
| Software | Periods |
|---|---|
| 2 to 7 years |
3.11 Leases, lease liabilities and right-of-use asset
The Company as lessee
The Company records a right-of-use asset and a lease liability on the date when a leased asset becomes available.
Right-of-use asset is equal to the cost of the initial lease liability, rent payments paid on or before the commencement date, initial direct costs incurred and restoration costs, less any incentive received. The Company includes its right-of-use assets with its property, plant and equipment in Note 9.
The lease liability corresponds to the present value of lease payments discounted at the implicit interest rate in the lease or the Company incremental borrowing rate when the former is not readily available. The Company's incremental borrowing rate is based on its credit rating, allowing it to obtain an asset of a similar value with similar borrowing terms and security.
The Company has elected to apply the exemption provision relating to short-term leases and leases of low-value, and associated costs, such as maintenance and insurance, are expensed as incurred.
The Company as lessor
The Company classifies each lease as operating lease or finance lease, at the beginning of the lease. A lease is a finance lease if it transfers substantially all of the risks and rewards of the underlying asset to the lessee; otherwise, the rental agreement is an operating lease agreement. Rental income from operating leases is accounted for on a straight-line basis over the term of the lease.
3.12 Impairment of property, plant and equipment
Individual assets or assets combined into cash-generating units are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognized for the amount by which the asset's or cash-generating unit's carrying amount exceeds its recoverable amount, which is the higher of fair value less costs to sell and value-in-use.
BMTC Group Inc. Notes to the Consolidated Financial Statements (Unaudited and in thousands of dollars, except per share amounts)
3. MATERIAL ACCOUNTING POLICIES (Continued)
3.13 Shareholders' equity
Capital stock is the amount received on issuance and is presented net of the initial share issue costs.
Retained earnings include all current and prior period retained profits, net of share redemption premiums, dividends paid and the costs of share issuances.
Dividends payable to shareholders are included in other payables when they have been declared but not paid before the reporting date.
3.14 Post-employment benefits
The Company provides post-employment benefits through defined benefit pension plans as well as defined contribution pension plans.
Contributions to the defined contribution plans are recognized as an expense in the period that relevant employee services are rendered.
The Company accrues its obligations under its defined benefit pension plans and the related costs, net of plan assets, as the services are rendered. The Company has adopted the following accounting policies:
-
The Company's defined benefit plan obligations are measured individually, estimating the amount of future benefits earned by employees for services provided in the current and prior periods. The actuarial valuation of defined benefit obligations uses the projected unit credit method. This determination incorporates management's best estimate of future salary levels, retirement ages of employees, mortality rates and other actuarial assumptions;
-
The discount rate for defined benefit obligations is determined by reference to the market yield, at year-end, on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension liability;
-
Remeasurements, which include actuarial gains and losses on benefit obligations, the return on plan assets in excess of interest income, the effect of the asset ceiling, and the impact of minimum funding requirements, are recognized in other comprehensive income and retained earnings immediately without any reclassification to net earnings;
BMTC Group Inc. Notes to the Consolidated Financial Statements (Unaudited and in thousands of dollars, except per share amounts)
3. MATERIAL ACCOUNTING POLICIES (Continued)
- The defined benefit plan amount presented in the consolidated statement of financial position is the difference between the present value of the defined benefit plan obligations and the fair value of the plan assets at the reporting date. The economic benefit available is calculated as the difference between the present value of the accounting value of the current service cost of the employer and the current services cost of the employer on a funded basis. This value cannot, however, be negative. When there is a defined benefit plan asset, the amount of the asset recognized cannot be greater than the present value of any future economic benefit available as a future plan reimbursement or decrease in future plan contributions. Any minimum funding requirements applicable to the Company's plans are taken into account to calculate the present value of economic benefits;
- An additional liability is recognized in the amount of the minimum funding requirement for defined benefit plans when the Company does not have an unconditional right to the surplus;
3.15 Provisions and contingent liabilities
Provisions are recognized when present obligations as a result of a past event will probably lead to an outflow of economic resources from the Company and when amounts can be estimated reliably. The timing or amount of the outflow may still be uncertain. A present obligation arises from the presence of a legal or constructive commitment that has resulted from past events, for example, product warranties granted, legal disputes or onerous contracts.
Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation.
All provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.
In those cases where the possible outflow of economic resources as a result of present obligations is considered improbable or remote, no liability is recognized.
3.16 Financial instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument.
Financial assets and financial liabilities are measured initially at fair value plus transactions costs, except for financial assets and financial liabilities carried at fair value through profit or loss, which are measured initially at fair value.
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
3. MATERIAL ACCOUNTING POLICIES (Continued)
Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognized when it is extinguished, discharged, cancelled or expires.
For the purpose of subsequent measurement, financial assets of the Company are classified into the following categories upon initial recognition:
- Amortized cost;
- Financial assets at fair value through profit or loss.
The following table summarizes the financial instrument classification and valuation methods.
| Item | Classification method |
|---|---|
| Cash | Amortized cost |
| Trade and other receivables | Amortized cost |
| Other financial assets | Fair value through profit or loss |
| Bank overdraft | Amortized cost |
| Trade and other payables* | Amortized cost |
- Excluding employee benefits payable, taxes and other statutory liabilities which are not financial instruments.
The category determines subsequent measurement and whether any resulting income and expense is recognized in net earnings or in other comprehensive income.
All financial assets except for those at fair value through profit or loss are subject to the recognition of expected credit losses.
All income and expenses relating to financial assets that are recognized in net earnings are presented within realized and unrealized gains on financial assets at fair value or finance income, except for any expected credit losses of trade and other receivables which is presented within administrative expenses.
BMTC Group Inc. Notes to the Consolidated Financial Statements (Unaudited and in thousands of dollars, except per share amounts)
3. MATERIAL ACCOUNTING POLICIES (Continued)
Financial assets at amortized cost
A financial asset must be measured at amortized cost if the two following conditions are met: the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
The Company recognizes a loss allowance for expected credit losses on financial assets measured at amortized cost. The amount of expected credit losses is updated on each reporting date to take into account changes in credit risk since the initial recognition of the respective financial instrument.
The Company recognizes lifetime expected credit losses on trade accounts receivable. Lifetime expected credit losses correspond to expected credit losses that result from all possible default events over the expected life of a financial instrument. The measurement of expected credit losses reflects reasonable and supportable information on past events, current conditions and forecasts of events and economic conditions and takes into account factors specific to receivables, general economic conditions and an assessment of the current and forecast direction of the conditions at the reporting date, including the time value of money, as applicable.
Financial assets at fair value through profit or loss
Investments presented as other financial assets have been classified at fair value through profit or loss because they are part of a portfolio included in management reports and are measured at fair value by management. Consequently, realized and unrealized gains and losses on these assets are recognized through profit or loss. Transaction costs related to held-for-trading financial assets are expensed as incurred.
Financial liabilities
Financial liabilities are subsequently measured at amortized cost using the effective interest method.
3.17 Judgment, estimates and assumptions
When preparing the consolidated financial statements, management undertakes a number of judgments, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results are likely to differ from the judgments, estimates and assumptions made by management, and will seldom equal the estimated results. Information about the significant judgments, estimates and assumptions that have the most significant effect on the recognition and measurement of assets, liabilities, income and expenses is provided below.
BMTC Group Inc. Notes to the Consolidated Financial Statements (Unaudited and in thousands of dollars, except per share amounts)
3. MATERIAL ACCOUNTING POLICIES (Continued)
Inventory valuation
The Company uses a high degree of judgment when estimating the effect of certain factors on the net realizable value of inventory, such as obsolescence and damages. The quantity, age and condition of inventory is measured and evaluated regularly during the period.
Useful lives of property, plant and equipment and intangibles assets
Management reviews the useful lives of property, plant and equipment and intangibles assets at each reporting date based on the expected utility of the assets. Actual results may, however, vary due to technical obsolescence, particularly for software and IT equipment.
Fair value of financial instruments
Management uses valuation techniques in measuring the fair value of financial instruments, where active market quotes are not available, that is for discount notes.
The carrying amounts of these instruments and a price sensitivity analysis of other financial instruments are presented in Note 17. In applying the valuation techniques, management makes maximum use of observable data, and uses estimates and assumptions that are, as far as possible, consistent with data that market participants would use in pricing the instrument. Where applicable data is not observable, management uses the best information available. These estimates may vary from the actual prices that would be achieved in an arm's length transaction at the reporting date.
Provisions and contingent liabilities
Judgment is required to determine whether a past event has led to a liability that should be recognized in the consolidated financial statements or presented as a contingent liability. Judgment and estimates are applied to quantify such liabilities and are based on a variety of factors, such as the nature of the claim or conflict, legal proceedings, the potential amount payable, the advice of legal counsel, prior experience and the likelihood of a loss. Refer to Note 16 for details on the carrying amount and other information on provisions and contingent liabilities.
Defined benefit pension plan cost and obligations
Management estimates the defined benefit obligations annually with the assistance of independent actuaries; however, the actual outcome may vary due to estimation uncertainties. The defined benefit obligations estimate is based on standard rates of inflation, mortality rates and the Company's specific anticipation of future salary increases. Estimation uncertainties exist particularly with regard to the assumptions, which may vary significantly in future valuations of the Company's defined benefit obligations.
BMTC Group Inc. Notes to the Consolidated Financial Statements (Unaudited and in thousands of dollars, except per share amounts)
3. MATERIAL ACCOUNTING POLICIES (Continued)
3.18 Accounting standard issued but not yet effective
IFRS 18, "Presentation and Disclosure in Financial Statements"
In April 2024, the IASB issued IFRS 18, which replaces IAS 1 Presentation of Financial Statements, and consequential amendments to several other standards. IFRS 18 introduces new requirements for presentation within the statement of earnings, including specified totals and subtotals. Entities are required to classify all income and expenses within the statement of earnings into one of five categories: operating, investing, financing, income taxes and discontinued operations, with prescribed subtotals for each new category. It also requires disclosure of management-defined performance measures which will now form part of the consolidated financial statements.
IFRS 18, and the amendments to the other standards, is effective for reporting periods beginning on or after January 1 2027, but earlier application is permitted and must be disclosed. IFRS 18 will apply retrospectively. The Company is currently working to identify all impacts the amendments will have on the consolidated financial statements and notes to the consolidated statements.
IFRS 7, "Financial Instruments: Disclosures", and IFRS 9, "Financial Instruments"
In May 2024, the IASB issued amendments to IFRS 7, "Financial Instruments: Disclosures," and IFRS 9, "Financial Instruments," following the postimplementation review of the requirements in IFRS 9 and the related requirements in IFRS 7. The IASB has amended IFRS 9 to clarify the recognition and derecognition date for certain financial assets and liabilities, with a new exception for certain financial liabilities settled in cash through an electronic payment system, as well as to clarify and include additional guidance for assessing whether the cash flows of a financial asset are solely payments of principal and interest on the principal amount outstanding. The IASB has amended IFRS 7 to add new disclosures for certain instruments whose contractual terms could change cash flows as well as to improve the disclosures about equity instruments designated as at fair value through other comprehensive income. The Company is currently assessing the impact of adopting the amendments to IFRS 7 and IFRS 9, which will be effective for years beginning on or after January 1, 2026.
4. REPORTABLE SEGMENTS
The Company has two reportable segments: Retail and Real Estate. The following summary describes the operations of each of the Company's reportable segments:
-
Retail business manages and operates, under the Tanguay banner, a retail network of furniture, household appliances and electronic products, in Quebec;
-
Real estate business holds a portfolio of properties in Quebec with the intends to proceed with the development or to generate rental income.
Reportable segments are presented according to the same criteria used to produce the internal report submitted to the President and the Chief Executive Officer, which assesses the performance of the reportable segments. The segment performance is assessed on the basis of operating earnings.
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
- REPORTABLE SEGMENTS (Continued)
Information regarding the operating (loss) earnings is as follow:
| April 30, 2025 | |||
|---|---|---|---|
| Retail | Real Estate | Total | |
| $ | $ | $ | |
| Revenue | 150 120 | 4 | 150 124 |
| Cost of sales | (92 947) | - | (92 947) |
| Gross Profit | 57 173 | 4 | 57 177 |
| Other (expenses) income | 69 | - | 69 |
| Operating expenses | (52 989) | (4 832) | (57 821) |
| Administrative expenses | (7 838) | (229) | (8 067) |
| Gains (losses) on disposals of property, plant and equipment | 6 | - | 6 |
| Operating (loss) earnings | (3 579) | (5 057) | (8 636) |
| April 30, 2024 | |||
| Retail | Real Estate | Total | |
| $ | $ | $ | |
| Revenue | 136 905 | 239 | 137 144 |
| Cost of sales | (88 103) | - | (88 103) |
| Gross Profit | 48 802 | 239 | 49 041 |
| Other (expenses) income | 26 | - | 26 |
| Operating expenses | (52 265) | (809) | (53 074) |
| Administrative expenses | (7 891) | (7 891) | |
| Gains (losses) on disposals of property, plant and equipment | - | - | - |
| Operating (loss) earnings | (11 328) | (570) | (11 898) |
Total assets ¹ and liabilities per by reportable operating segments are as follows:
| April 30, 2025 | April 30, 2024 | April 30, 2025 | April 30, 2024 | |
|---|---|---|---|---|
| Assets | Liabilities | |||
| $ | $ | $ | $ | |
| Retail | 375 292 | 358 612 | 188 515 | 181 576 |
| Real Estate | 152 869 | 147 384 | 19 898 | 13 862 |
| Total ¹ | 528 161 | 505 996 | 208 413 | 195 438 |
(1) Excluding other financial assets
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
5. ADDITIONAL INFORMATION ON CONSOLIDATED STATEMENTS OF EARNINGS
| April 30, 2025 | April 30, 2024 | |
|---|---|---|
| Employee benefits expense | $ | $ |
| Salaries | 24 089 | 23 233 |
| Defined benefit pension plans | ||
| expenses (recovery) | 1 060 | 1 122 |
| Defined contribution pension plan expense | 341 | 319 |
| Total employee benefits expense | 25 490 | 24 674 |
| April 30, 2025 | April 30, 2024 | |
| $ | $ | |
| Other elements of revenues and expenses | ||
| Depreciation of property, plant and equipment | ||
| and investment properties | 4 891 | 2 383 |
| Depreciation of intangible assets | 1 006 | - |
| Losses (gains) on disposals of financial assets | - | 80 |
| April 30, 2025 | April 30, 2024 | |
| Investment income | $ | $ |
| On financial assets at fair value through profit or loss | ||
| Interest | 313 | 1 267 |
| Dividends | 1 297 | 1 673 |
| On financial assets at amortized cost | ||
| Interest | 2 | - |
| Total investment income | 1 612 | 2 940 |
| 6. INCOME TAXES | ||
| The income tax expense is detailed as follows: | April 30, 2025 | April 30, 2024 |
| $ | $ | |
| Total current tax expense (recovery) for the period | (1 968) | (2 560) |
| Total deferred tax expense (recovery)* for the period | (1 204) | 1 263 |
| (3 172) | (1 297) |
- In 2025 and 2024, the deferred tax liability includes only the impact of changes in temporary differences.
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
- INCOME TAXES (Continued)
The Company's effective income tax rate differs from the combined statutory income tax rate. This difference arises from the following items:
| April 30, 2025 | April 30, 2024 | |
|---|---|---|
| $ | $ | |
| Income tax expense (recovery) for the period based on combined tax rate (federal and provincial of 26.50% in 2025 and 2024) | (4 268) | 43 |
| Non-taxable dividends | (147) | (151) |
| Non-taxable capital gains | 1 203 | (1 264) |
| Non-deductible expenses | 41 | 71 |
| Other | (1) | 4 |
| (3 172) | (1 297) |
The tax effects of significant components of temporary differences that give rise to the Company's deferred tax assets (liabilities) are as follows:
| Balance as at February 1, 2025 | Recognized in earnings | Recognized in other comprehensive income | Balance as at April 30, 2025 | |
|---|---|---|---|---|
| Recognized amounts | $ | $ | $ | $ |
| Net unrealized (gain) loss on other financial assets | (7 876) | 1 204 | - | (6 672) |
| Liability (asset) defined benefit plans | (32 873) | - | - | (32 873) |
| Property, plant and equipment, intangibles and investment properties | (5 821) | - | - | (5 821) |
| (46 570) | 1 204 | - | (45 366) |
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
- INCOME TAXES (Continued)
| Balance as at February 1, 2024 | Recognized in earnings | Recognized in other comprehensive income | Balance as at January 31, 2025 | |
|---|---|---|---|---|
| Recognized amounts | $ | $ | $ | $ |
| Net unrealized (gain) loss on other financial assets | (3 619) | (4 257) | - | (7 876) |
| Liability (asset) defined benefit plans | (22 912) | (1 004) | (8 957) | (32 873) |
| Property, plant and equipment, intangibles and investment properties | (2 416) | (3 405) | - | (5 821) |
| (28 947) | (8 666) | (8 957) | (46 570) |
- CASH FLOW ADJUSTMENTS AND CHANGES IN WORKING CAPITAL
| April 30, 2025 | April 30, 2024 | |
|---|---|---|
| Adjustments are detailed as follows: | $ | $ |
| Depreciation of property, plant and equipment and investment properties | 4 891 | 2 383 |
| Depreciation of intangible assets | 1 006 | - |
| Deficit (excess) of contributions over defined benefit plan expense | 200 | 225 |
| Investment income | (1 612) | (2 940) |
| Interest on lease liability | 262 | 84 |
| 4 747 | (248) |
The net change in working capital detailed as follows:
| April 30, 2025 | April 30, 2024 | |
|---|---|---|
| $ | $ | |
| Trade and other receivables | 5 472 | (1 850) |
| Inventory | (17 857) | (1 046) |
| Prepaid expenses | (4 580) | (2 571) |
| Trade and other payables excluding trade and accrued expenses for investment properties and intangibl | 24 619 | 35 526 |
| 7 654 | 30 059 |
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
8. OTHER FINANCIAL ASSETS
| April 30, 2025 | ||
|---|---|---|
| Fair value | Cost | |
| At fair value through profit or loss | $ | $ |
| Liquidities bearing interest from 4.00 % to 4.25 %, maturing no later than 2025 | 34 033 | 34 033 |
| Preferred shares | 1 589 | 1 500 |
| Shares of Canadian companies | 64 722 | 44 404 |
| Shares of U.S. companies | 96 051 | 65 336 |
| Total at fair value through profit or loss | 196 395 | 145 273 |
| Total other financial assets | 196 395 | 145 273 |
| January 31, 2025 | ||
| --- | --- | --- |
| Fair value | Cost | |
| At fair value through profit or loss | $ | $ |
| Liquidities bearing interest from 4.00 % to 4.25 %, maturing no later than 2024 | 48 533 | 48 533 |
| Preferred shares | 555 | 500 |
| Shares of Canadian companies | 65 017 | 44 405 |
| Shares of U.S. companies | 104 844 | 65 308 |
| Total at fair value through profit or loss | 218 949 | 158 746 |
| Total other financial assets | 218 949 | 158 746 |
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
- PROPERTY, PLANT AND EQUIPMENT
| Land | Parking lots and buildings | Signs | Leasehold improvements | Automotive equipment | Computer equipment | Furniture and equipment | Leased property | Leased automotive equipment | Total | |
|---|---|---|---|---|---|---|---|---|---|---|
| $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |
| Gross carrying amount | ||||||||||
| Balance as at February 1, 2025 | 46 027 | 120 961 | 539 | 9 719 | 7 187 | 9 457 | 9 179 | 32 179 | 2 209 | 237 457 |
| Additions | - | - | - | - | 201 | - | - | 708 | - | 909 |
| Disposals | - | - | - | - | (112) | - | - | - | - | (112) |
| Balance as at April 30, 2025 | 46 027 | 120 961 | 539 | 9 719 | 7 276 | 9 457 | 9 179 | 32 887 | 2 209 | 238 254 |
| Depreciation and impairment | ||||||||||
| Balance as at February 1, 2025 | - | 67 252 | 517 | 9 719 | 3 806 | 9 312 | 7 450 | 16 063 | 542 | 114 661 |
| Disposals | - | - | - | - | (82) | - | - | - | - | (82) |
| Depreciation | - | 849 | 22 | - | 167 | 26 | 95 | 1 816 | 78 | 3 053 |
| Balance as at April 30, 2025 | - | 68 101 | 539 | 9 719 | 3 891 | 9 338 | 7 545 | 17 879 | 620 | 117 632 |
| Carrying amount as at April 30, 2025 | 46 027 | 52 860 | - | - | 3 385 | 119 | 1 634 | 15 008 | 1 589 | 120 622 |
| Gross carrying amount | ||||||||||
| Balance as at February 1, 2024 | 46 217 | 123 181 | 539 | 9 719 | 6 337 | 9 457 | 9 179 | 21 409 | 579 | 226 617 |
| Additions | 20 223 | - | - | - | 1 020 | - | - | 12 027 | 1 777 | 35 047 |
| Transfer to investment properties | (20 223) | - | - | - | - | - | - | - | - | (20 223) |
| Disposals | (190) | (2 220) | - | - | (170) | - | - | (1 257) | (147) | (3 984) |
| Balance as at January 31, 2025 | 46 027 | 120 961 | 539 | 9 719 | 7 187 | 9 457 | 9 179 | 32 179 | 2 209 | 237 457 |
| Balance as at February 1, 2024 | - | 65 682 | 511 | 9 719 | 3 290 | 9 060 | 7 038 | 14 755 | 464 | 110 519 |
| Assets classified as held for sale | - | - | - | - | - | - | - | - | - | - |
| Transfer to investment properties | - | - | - | - | - | - | - | - | - | - |
| Disposals | - | (1 994) | - | - | (98) | - | - | (1 257) | (85) | (3 434) |
| Depreciation | - | 3 564 | 6 | - | 614 | 252 | 412 | 2 565 | 163 | 7 576 |
| Balance as at January 31, 2025 | - | 67 252 | 517 | 9 719 | 3 806 | 9 312 | 7 450 | 16 063 | 542 | 114 661 |
| Carrying amount as at January 31, 2025 | 46 027 | 53 709 | 22 | - | 3 381 | 145 | 1 729 | 16 116 | 1 667 | 122 796 |
During the period ended April 30, 2025, the Company disposed of assets for an amount of $36, resulting in a gain of $6.
During the year ended January 31, 2025, the Company disposed of assets for an amount of $6,968, including an amount of $2,417 received as an additional settlement related to an expropriation, resulting in a gain of $6,475. The company also disposed of assets held for sale in the amount of $6,510, resulting in a gain of $4,648.
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
10. INVESTMENT PROPERTIES
| Land | Parking lots and buildings | Furniture and equipment | Computer equipment | Total | |
|---|---|---|---|---|---|
| $ | $ | $ | $ | $ | |
| Gross carrying amount | |||||
| Balance as at February 1, 2025 | 45 875 | 74 270 | 14 782 | 2 198 | 137 125 |
| Additions | - | 7 485 | 1 907 | - | 9 392 |
| Balance as at April 30, 2025 | 45 875 | 81 755 | 16 689 | 2 198 | 146 517 |
| Depreciation and impairment | |||||
| Balance as at February 1, 2025 | - | 8 868 | 1 142 | 110 | 10 120 |
| Depreciation | - | 1 180 | 548 | 110 | 1 838 |
| Balance as at April 30, 2025 | - | 10 048 | 1 690 | 220 | 11 958 |
| Carrying amount as at April 30, 2025 | 45 875 | 71 707 | 14 999 | 1 978 | 134 559 |
| Land | Parking lots and buildings | Furniture and equipment | Computer equipment | Total | |
| $ | $ | $ | $ | $ | |
| Gross carrying amount | |||||
| Balance as at February 1, 2024 | 6 426 | 13 903 | - | - | 20 329 |
| Assets transferred form property, plant and equipment | 20 223 | - | - | - | 20 223 |
| Additions | 22 330 | 69 140 | 14 782 | 2 198 | 108 450 |
| Assets classified as held for sale | (3 104) | (8 773) | - | - | (11 877) |
| Balance as at January 31, 2025 | 45 875 | 74 270 | 14 782 | 2 198 | 137 125 |
| Depreciation and impairment | |||||
| Balance as at February 1, 2024 | - | 5 622 | - | - | 5 622 |
| Assets transferred form property, plant and equipment | - | (1 705) | - | - | (1 705) |
| Depreciation | - | 4 951 | 1 142 | 110 | 6 203 |
| Balance as at January 31, 2025 | - | 8 868 | 1 142 | 110 | 10 120 |
| Carrying amount as at January 31, 2025 | 45 875 | 65 402 | 13 640 | 2 088 | 127 005 |
The carrying amount at April 30, 2025 includes $12,437 of unarmortized investment properties under construction. As at April 30, 2025, the Company had entered into commitments of $15,920 for the construction and improvements of investment properties. In addition, an amount of $10,465 has been recorded in accrued expenses for investments properties not yet paid for.
The carrying amount at January 31, 2025 includes $3,045 of unarmortized investment properties under construction. As at January 31, 2025, the Company had entered into commitments of $28,810 for the construction and improvements of investment properties. In addition, an amount of $5,234 has been recorded in accrued expenses for investments properties not yet paid for.
On January 31, 2025, the company entered into a sales agreement with a buyer for a building included in its real estate segment. The transaction is expected to be completed by the end of the financial year 2026, subject to fulfillment of the contractual conditions. In accordance with IFRS 5, this asset has been reclassified under "Assets held for sale" and measured at the lower of carrying amount and fair value less costs to sell.
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
11. INTANGIBLE ASSETS
| April 30, 2025 | January 31, 2025 | |||
|---|---|---|---|---|
| Software | Total | Software | Total | |
| $ | $ | $ | $ | |
| Gross carrying amount | ||||
| Opening balance | 8 049 | 8 049 | - | - |
| Additions | - | - | 8 049 | 8 049 |
| Closing balance | 8 049 | 8 049 | 8 049 | 8 049 |
| Depreciation and impairment | ||||
| Opening balance | 1 006 | 1 006 | - | - |
| Depreciation | 1 006 | 1 006 | 1 006 | 1 006 |
| Closing balance | 2 012 | 2 012 | 1 006 | 1 006 |
| Carryin amount at closing | 6 037 | 6 037 | 7 043 | 7 043 |
As at April 30, 2025 and January 31, 2025, an amount of $8,049 has been recorded in accrued expenses for intangible assets not yet paid for.
12. LEASE LIABILITIES
The Company is committed under long-term leases for stores, warehouses and leased automotive equipment, for which a lease liability is recorded. The reconciliation of the lease liability is detailed as follows:
| April 30, 2025 | January 31, 2025 | |
|---|---|---|
| $ | $ | |
| Opening balance | 17 749 | 7 819 |
| Additions | 708 | 13 804 |
| Disposal | - | (57) |
| Interest | 262 | 372 |
| Payments | (1 515) | (4 189) |
| Closing balance | 17 204 | 17 749 |
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
12. LEASE LIABILITIES (continued)
The principal payments to be made are detailed as follows:
| Less than one year | From 1 to 5 years | More than 5 years | Total | |
|---|---|---|---|---|
| $ | $ | $ | $ | |
| April 30, 2025 | 7 463 | 6 590 | 3 151 | 17 204 |
| January 31, 2025 | 6 515 | 7 905 | 3 329 | 17 749 |
The Company is committed under long-term leases, for which additional payments for taxes and maintenance, not taken into account in the lease liability obligation, are required. During the period ended April 30, 2025, a rental charge of $282 was recognized in earnings ($966 for the corresponding period of 2024) in connection with these additional payments.
13. BANK BORROWINGS
The Company has an unsecured line of credit in the amount of $30,000 repayable on demand, bearing interest at the prime rate. The company is subject to certain restrictive covenants, for the periods ended April 30, 2025 and 2024, the Company was not in default.
14. CAPITAL STOCK
Authorized
Unlimited number of shares without par value
First preferred shares, issuable in series.
Second preferred shares, issuable in series.
| April 30, 2025 | January 31, 2025 | |
|---|---|---|
| $ | $ | |
| Issued and fully paid | ||
| 32,328,000 | ||
| (32,362,300 as at January 31, 2025) | 2 561 | 2 563 |
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
14. CAPITAL STOCK (continued)
| April 30, 2025 | January 31, 2025 | |
|---|---|---|
| Issued and fully paid | ||
| Beginning of year | 32 362 300 | 32 685 050 |
| Share redemption | (34 300) | (322 750) |
| Issued and fully paid, end of year | 32 328 000 | 32 362 300 |
| Shares authorized for the share option plan | 5 710 864 | 5 710 864 |
| Total shares authorized | 38 038 864 | 38 073 164 |
During the period ended April 30, 2025, the Company redeemed 34,300 common shares for a total cash consideration of $423. The redemption premium of $421 for the shares and the tax on the net value of equity repurchases of $8 were recognized in retained earnings for a total of $429.
During the year ended January 31, 2025, the Company redeemed 322,750 common shares for a total cash consideration of $4,386. The redemption premium of $4,361 for the shares and the tax on the net value of equity repurchases of $88 were recognized in retained earnings for a total of $4,449.
Share option plan
The Company has a share option plan for certain directors and employees, which provides for the purchase of common shares under certain circumstances up to a maximum number of 10,729,106 issuable common shares. As at April 30, 2025, a total of 5,710,864 common shares (5,710,864 common shares as at January 31, 2025) remained authorized for issuance under the Company's share option plan. During the year ended January 2025 and the period ended April 30, 2025, no options were granted.
15. TRADE AND OTHER PAYABLES
The following table analyzes trade and other payables recognized in the consolidated statements of financial position:
| April 30, 2025 | January 31, 2025 | |
|---|---|---|
| $ | $ | |
| Trade accounts payable | 42 598 | 41 720 |
| Accrued expenses | 11 739 | 10 181 |
| Accrued expenses - investment properties and intangibles | 18 514 | 13 283 |
| Employee benefits | 10 731 | 10 582 |
| Customer deposits | 62 261 | 40 227 |
| 145 843 | 115 993 |
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
16. PROVISIONS AND CONTINGENT LIABILITIES
The Company is party to claims and lawsuits in the normal course of business. Management believes that the resolution of these claims and lawsuits will not have a materially adverse effect on the Company's financial position.
17. FINANCIAL INSTRUMENTS
The carrying amounts presented in the consolidated statement of financial position relate to the following categories of financial assets and liabilities:
| April 30, 2025 | January 31, 2025 | |
|---|---|---|
| $ | $ | |
| Financial assets | ||
| Financial assets at fair value through profit and loss | ||
| Other financial assets | 196 395 | 218 949 |
| Financial assets at amortized cost | ||
| Cash | 3 227 | 1 501 |
| Trade and other receivables | 2 640 | 8 112 |
| 5 867 | 9 613 | |
| Financial liabilities | ||
| Financial liabilities at amortized cost | ||
| Bank overdraft | - | 15 126 |
| Trade* and other payables | 135 112 | 105 411 |
| 135 112 | 120 537 |
- excluding employee benefits, taxes and other statutory liabilities
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
17. FINANCIAL INSTRUMENTS (Continued)
The following table presents financial assets and financial liabilities measured at fair value in the consolidated statement of financial position in accordance with the fair value hierarchy. This hierarchy groups financial assets and financial liabilities into three levels based on the significance of inputs used in measuring the fair value of the financial assets and financial liabilities.
The fair value hierarchy has the following levels:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The level within which the financial asset or financial liability is classified is determined based on the lowest level of significant input to the fair value measurement. The financial assets and financial liabilities measured at fair value in the consolidated statements of financial position and financial instruments measured at amortized cost for which fair value is presented are grouped according to the fair value hierarchy is as follows:
| April 30, 2025 | |||
|---|---|---|---|
| Level 1 | Level 2 | Level 3 | |
| $ | $ | $ | |
| Financial assets at fair value | |||
| Liquidities bearing interest | - | 34 033 | - |
| Preferred shares | 1 589 | - | - |
| Shares of Canadian companies | 64 722 | - | - |
| Shares of U.S. companies | 96 051 | - | - |
| January 31, 2025 | |||
| Level 1 | Level 2 | Level 3 | |
| $ | $ | $ | |
| Financial assets at fair value | |||
| Liquidities bearing interest | - | 48 533 | - |
| Preferred shares | 555 | - | - |
| Shares of Canadian companies | 65 017 | - | - |
| Shares of U.S. companies | 104 844 | - | - |
Fair value measurement
The methods and valuation techniques used for the purpose of measuring fair value are unchanged compared to the previous reporting period.
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
17. FINANCIAL INSTRUMENTS (Continued)
The fair value of a financial instrument is generally the consideration for which the instrument would be exchanged in an arm's length transaction, between knowledgeable, willing parties who are under no compulsion to act.
The existence of published price quotations in an active market is the best evidence of fair value. The fair value of shares and bonds is established based on the most recent closing date market price, based on the bid price at the period-end. If a security is not actively traded, the fair value is determined by a valuation technique using observable market date to the extent possible.
| April 30, 2025 | April 30, 2024 | |
|---|---|---|
| $ | $ | |
| Gains (losses) unrealized on assets held at the close | (9 081) | 9 202 |
| Gains (losses) realized on assets not held at the close | - | (80) |
| Gains (losses) realized and unrealized on financial assets, fair value | (9 081) | 9 122 |
Financial instrument risks
The Company manages the risks arising from financial instruments, in close cooperation with the Board of Directors. The objectives are to ensure the availability of sufficient amounts of cash flow in the short and medium term of the company by reducing the exposure to financial markets. Long-term financial instruments are managed to generate lasting returns.
The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options.
Market risk
Market risk encompasses many types of risk. The variation of the types of risk, such as interest rate risk and other factors impacting all similar publicly traded financial instruments, has an impact on the fair value of the financial assets classified at fair value through profit or loss. To minimize market risk, the Company ensures that the type of investments and individual investments in its investment portfolio are diversified. Additionally, a significant portion of its investments is in financial instruments with short maturity dates, in particular banker's acceptances and discount notes.
Price risk sensitivity
The following table illustrates the sensitivity of income and equity in regards to changes in the market price all other things being equal. It assumes a ± 5% change of the market price for the periods ended April 30, 2025 and 2024.
| April 30, 2025 | April 30, 2024 | |
|---|---|---|
| $ | $ | |
| Variation | ||
| Income for the period and equity | 7 042 | 6 406 |
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
17. FINANCIAL INSTRUMENTS (Continued)
Exchange risk and foreign currency sensitivity
The Company is exposed to exchange risk, because a part of its purchases of inventory is made in currencies other than Canadian dollars. The Company also owns equity investments denominated in foreign dollars.
The Company does not enter into foreign exchange forward contracts to mitigate the exposure to foreign currency risk.
Financial assets and financial liabilities which expose the Company to currency risk are disclosed below. The amounts are translated into Canadian dollars at the closing rate:
| April 30, 2025 | April 30, 2024 | |
|---|---|---|
| $ | $ | |
| Shares denominated in foreign dollars | 96 051 | 89 824 |
| Trade denominated in foreign dollars | (5 578) | (1 840) |
| Total exposure | 90 473 | 87 984 |
The following table illustrates the sensitivity of income and equity in regards to the Company's financial assets and financial liabilities and the Canadian dollar exchange rate relative to foreign currencies, all other factors remaining constant. It assumes a ± 5% change of the Canadian dollar exchange rate for the periods ended April 30, 2025 and 2024.
| April 30, 2025 | April 30, 2024 | |
|---|---|---|
| Variation | $ | $ |
| Income for the period and equity | 3 961 | 3 828 |
Credit risk
Credit risk is the risk that a party to a financial instrument will fail to discharge an obligation towards the Company. The Company is exposed to this risk as a result of various financial instruments, including its cash and cash equivalent, trade and other receivables and investments in bonds. The Company's maximum credit risk exposure is limited to the carrying amount of its financial assets recognized on the reporting date.
Credit risk in respect of cash and cash equivalents, amounts receivable on credit and debit cards is considered negligible because the counterparties are reputable banks with quality external credit ratings.
For commercial trade and other receivables, management has assessed that the credit quality of trade and other receivable that are neither impaired nor in default remains sound. No significant customers or counterparties were considered to be in default, and no significant increases in credit risk were identified for these assets at the end of the reporting date.
With regard to credit risk related to bond investments, the Company manages its exposure by investing exclusively in securities issued by highly rated financial institutions and highly rated sovereign entities, primarily federal governments, thereby significantly reducing the likelihood of credit losses.
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
17. FINANCIAL INSTRUMENTS (Continued)
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations. The Company manages its liquidities by monitoring forecasted cash receipts and disbursements in the course of daily activities. Net cash requirements are compared with available cash, investments and credit facility to ascertain if they are sufficient for the period in question. The Company also considers expected cash resources from sales and its financial assets in managing the liquidity risk.
Future payments to be made under its contractual obligations are allocated as follows:
| April 30, 2025 | |||||
|---|---|---|---|---|---|
| Carrying amount | Contractual cash flows | Under 1 year | 2 - 5 years | More than 5 years | |
| $ | $ | $ | $ | $ | |
| Trade and other payables excluding customer deposits | 83 582 | 83 582 | 83 582 | - | - |
| Lease liabilities | 17 204 | 19 583 | 8 239 | 7 808 | 3 536 |
| 100 786 | 103 165 | 91 821 | 7 808 | 3 536 | |
| January 31, 2025 | |||||
| --- | --- | --- | --- | --- | --- |
| Carrying amount | Contractual cash flows | Under 1 year | 2 - 5 years | More than 5 years | |
| $ | $ | $ | $ | $ | |
| Trade and other payables excluding customer deposits | 75 766 | 75 766 | 75 766 | - | - |
| Lease liability | 17 749 | 20 267 | 7 305 | 9 208 | 3 754 |
| 93 515 | 96 033 | 83 071 | 9 208 | 3 754 |
Capital management
The Company's capital management objectives are to safeguard its assets, while maximizing the Company's growth and providing an adequate return to its shareholders. In addition to a conservative approach with respect to safeguarding the financial position, the Company achieves its objective through sound management of internally generated capital and through using capital when necessary to finance its growth initiatives. The Company's capital corresponds to equity.
BMTC Group Inc.
Notes to the Consolidated Financial Statements
(Unaudited and in thousands of dollars, except per share amounts)
18. EARNINGS PER SHARE AND DIVIDENDS
The following table presents the calculation of basic net earnings per share:
| April 30, 2025 | April 30, 2024 | |
|---|---|---|
| $ | $ | |
| Net earnings | (12 933) | 1 461 |
| Weighted average number of shares to calculate basic and diluted net earnings per share | 32 410 211 | 32 769 504 |
| Net earnings per share: Basic and diluted | (0,40) | 0,04 |