Savaria Corporation

Just on that Greenville expansion, Kate, can you remind us or give us the updated total CapEx budget for that? And then also, just remind us on your manufacturing capacity situation ahead of your Spring Investor Day that sounds like it's going to be highlighting a lot of growth themes. Do you have capacity to support the next growth wave without having to incur a CapEx wave?

Thank you. So basically, as our previous press release, the investment that we want to do is approximately 30 million Canadian. So I think as we progress, we'll be able to put more colour. For sure it's not 30 million for the expansion, it's for some equipment as well. So I think we'll see. And after that, really a footprint. I think right now we have approximately 12 factories, like 1.1 million square foot of footprint. And unfortunately, most of our factories just work on one shift, so I think we have plenty of capacity for the next five years. So I don't see any major change in our footprint in the next five years, unless there's some M&A. That's it.

Okay, thank you very much. That's it.

Thank you so much. Our last question comes from the line of Carol Abu-Dhabi with Scotiabank. Please proceed.

Good morning. This is Carol for Johnson and Goldman from Scotiabank. Thanks for taking my questions. Really nice performance in accessibility margins. I think an all-time record. I believe Q4 margins are seasonally weaker, but it seems like you still have room on severe one. How should we think about the sustainability of margins?

I think margins has been very sustainable in the last two years, and we always see a bit of improvement each quarter. For sure, yeah, Q4, yeah, there's Christmas time, there's this, that, that, so it's a bit too early to comment, but I would think that the over 20% for the food group of Sarah will be able to maintain it in the fourth quarter, so I'm not too worried about that. And I think going forward, we have a good plan, as we said a bit earlier, to continue to improve margins each year, but also to have some growth expansion, which is our key focus for the future.

Okay, thank you. And could you also provide a teaser for the Sevilla 2.0 initiatives, if possible?

I think the teaser, it will be in April, and I think it will be really around growth, growth, growth. So every decision that we make, does it have an impact on growth? So we decide to do R&D project, is it going to bring growth or not? Does it mean we're not doing R&D project if it's going to improve some quality or make it for regulation for the code? But definitely, if I would do M&A, Is this going to advocate for the synergies and to bring some growth? So definitely growth. We want this to be in our first line of discussion on most of the decisions.

Thank you. Thank you, ladies and gentlemen. This concludes our Q&A session. I will pass the call back to Sebastian Bourassa for final comments.

Thank you, Carmen. And that's a very interesting question this morning. So thanks for taking the time. And again, one more time, thanks for all the several employees and looking forward to see you again in March. Thank you.

And thank you all for participating. You may now disconnect. Everyone have a great day.