For the three months ended March 31, 2024, Adentra Inc. generated total sales of $535.1 million, as compared to the $579.9 million in Q1 2023. While sales volumes improved by approximately 1% year-over-year, product price deflation of approximately 9% resulted in a $44.7 million, or 7.7%, decrease in sales. The results were not significantly impacted by foreign exchange translation of Canadian sales to US dollars for reporting purposes.
Q1 2024 gross margin increased to $118.2 million, up $1.2 million, or 1.1%, from the same period last year. The improvement in gross margin was primarily driven by a higher gross margin percentage, partially offset by lower sales revenue. At 22.1%, Q1 2024 gross margin percentage was 190 basis points higher than the 20.2% achieved in Q1 2023. The improvement in gross margin percentage was due to our strategic initiatives as outlined in Section 1.1, and a reduction in inventory write-downs as compared to the Q1 2023.
Q1 2024 Adjusted EBITDA grew 6.3% to $45.6 million, from $42.9 million during the same period in 2023. This $2.7 million improvement largely reflects the $1.2 million increase in gross margin and $1.4 million decrease in operating expenses (before changes in depreciation and amortization and LTIP expense).
Net income for the Q1 2024 increased to $10.7 million (basic earnings per share of $0.48), from $9.6 million (basic earnings per share of $0.43) in Q1 2023. The $1.1 million, or 11.2%, improvement in net income includes the $1.1 million increase in EBITDA and the $1.1 million decrease in net finance expense, the $0.1 million decrease in income tax expense, partially offset by the $1.3 million increase in depreciation and amortization.
Q1 2024 adjusted net income grew 16.8% to $17.3 million, from $14.8 million in Q1 2023. Adjusted basic earnings per share climbed 18.2% to $0.78, from $0.66 in Q1 2023.
Adentra is one of North America's largest distributors of architectural building products to the residential, repair and remodel, and commercial construction markets. The Company operates a network of 85 facilities in the United States and Canada.
