Diversified Royalty Corp. reports 5.9% organic growth

Diversified Royalty Corp. reported its financial results for the fourth quarter and the entire year of 2024. The company is based in Vancouver and specializes in acquiring royalties from various businesses in North America. In the fourth quarter of 2024, Diversified Royalty saw a 5.9% growth in organic royalties. For the year, this growth was slightly lower at 5.0%. The company’s biggest royalty partner, Mr. Lube, showed impressive growth, with a 12.0% increase in same-store sales for Q4 2024. However, other partners had mixed results, with some experiencing negative sales growth. For Q4 2024, Diversified Royalty earned $17.0 million in revenue, which is a small increase from $16.4 million in the same quarter of 2023. Adjusted revenue rose to $18.4 million from $17.7 million last year, thanks to new acquisitions and growth from some partners. Despite these positive signs, the company faced challenges in areas such as its AIR MILES program, which showed a decline in revenue due to losing a key partner and ongoing struggles in the loyalty program space. Net income for the fourth quarter was reported at $4.0 million, down from $9.1 million a year earlier. A significant reason for this drop was an impairment loss on intangible assets. For the year, total net income was $26.6 million compared to $31.7 million in 2023. DIV aims to enhance cash flow and maintain steady dividends for its shareholders. They own various well-known brands, including Mr. Lube, Nurse Next Door, and BarBurrito, and are focused on expanding their portfolio to generate growing royalty income.