Mullen Group Ltd. Reports Strong 2023 Third Quarter Financial Results

OKOTOKS, AB, Oct. 19, 2023

"Throughout the first nine months of 2023 the economy has endured a period of adjustment due to the rapid rise in interest rates and tighter monetary policy, a deliberate attempt by central bank authorities to reign in inflationary pressures.  These measures have been somewhat successful, but they have also directly impacted economic growth and the demand for freight services.  In addition to these macro events, the transportation and logistics market in North America is also experiencing a period of adjustment as retailers, shippers, and manufacturers have embarked upon an inventory rebalancing strategy, after two years of excessive ordering.  Consumers have also changed their spending patterns this year towards services and leisure.  Despite these headwinds, our business generated very strong results, differentiating the Mullen Group from many of our peers.  Most impressively, in the recent quarter ended September 30, 2023, revenues reached the half a billion mark once again, which I attribute to the diversification of service offerings our forty Business Units provide, accompanied by a well thought out acquisition strategy. I can say with confidence, that we have built a business that can deliver growth regardless of the market conditions," commented Mr. Murray K. Mullen, Chair and Senior Executive Officer.

"There is a growing consensus that the economy may avoid tipping into recession territory, implying that consumer demand can remain at or near current levels for the balance of 2023.  There are also a few "green shoots" suggesting that inventory levels are back in balance, a strong indicator that freight demand may be on the verge of stabilizing.  These are positives for the transportation and logistics industry, and more importantly for our organization.  In addition, we forecast another solid quarter for the Specialized and Industrial Services segment given the outlook for the Canadian energy and mining industries, verticals in which we have a meaningful presence.  And lastly, we continue to evaluate a number of quality acquisition opportunities.  Based upon these positive fundamentals, our full year 2023 results are now expected to exceed earlier projections, setting us up nicely for future years," added Mr. Mullen.