08:01 AM EDT, 10/17/2025 (MT Newswires) -- Colabor Group ( COLFF ) , a distributor and wholesaler of food and related products, overnight Thursday reported a swing to net loss, as sales missed consensus estimate and as it recognized an impairment charge of $75 million in the third quarter.

For the three-months ended Sept. 6, the company reported net loss from continuing operations of $74.4 million or loss per basic and diluted share of $0.73, compared with net earnings of $1.1 million or profit per basic and diluted share of $0.01, a year earlier.

Sales from continuing operations in the quarter increased to $212.5 million, compared with $162 million, a year-ago, missing consensus estimate compiled by FactSet of $213.8 million.

The company also appointed current chief operating officer Kelly Shipway as Colabor's ( COLFF ) president and chief executive upon the departure of Louis Frenette. It also said it has initiated the integration plan for Alimplus' activities in order to achieve expected cost savings with the closure of the Drummondville site by the end of November and the Anjou site by the end of January 2026, respectively.

Colabor ( COLFF ) expects integration synergies to take several quarters to materialize.

"Among other things, there was a temporarily increased cost structure due to the time required to ensure the successful integration of Alimplus' activities and the consequent deferral of the realization of the anticipated synergies resulting from the acquisition of Alimplus, the loss of sales associated with the cybersecurity incident, pressure on margins due to the impact of the renewal of the major institutional contract in December 2024 as well as challenging market conditions for the foodservice sector," said Colabor's ( COLFF ) interim senior vice president and chief financial officer Yanick Blanchard. "To remedy the situation, since the end of the quarter, we have initiated the first phases of our program to integrate Alimplus' activities into our Saint-Bruno and Levis operations."

The company expects a return to "stronger profitability next year, mainly driven by the realization of cost-based synergies with Alimplus."

"Our immediate priority is to stabilize the company's capital, by continuing negotiations with our main lenders and Investissement Quebec to reach long-term agreements as well as by examining other financial alternatives, while actively implementing our Alimplus integration plan," said Blanchard.

Shares of the company closed up 3.3% to $0.63 on the Toronto Stock Exchange Thursday.