Core Insights - FGI Industries Ltd. reported total revenue of $29.4 million for Q2 2024, reflecting a year-over-year increase of 0.6% [1][2][3] - Gross profit reached $9.0 million, up 11.9% year-over-year, with a gross margin improvement to 30.5%, an increase of 310 basis points [1][5] - The company experienced an operating loss of $0.5 million and a net loss of $0.0 million, with adjusted net income of $0.1 million [1][6][7] Financial Performance - Total revenue for Q2 2024 was $29.4 million, driven by increased volume in Shower Systems and normalization of inventory levels [3] - Sanitaryware revenue decreased to $17.3 million, down from $18.8 million, while Bath Furniture revenue fell to $4.0 million from $4.8 million [4] - Shower Systems revenue increased by 37% year-over-year to $5.9 million, attributed to new product launches and broader customer orders [4] - Other revenue, primarily from Kitchen Cabinets, rose to $2.1 million from $1.3 million [4] Profitability Metrics - Gross profit for Q2 2024 was $9.0 million, an increase of 11.9% compared to the previous year, with a gross profit margin of 30.5% [5] - The operating loss was $0.5 million, improved from a loss of $0.6 million in the prior year, with adjusted operating loss at ($0.3) million [6] - Adjusted net income for Q2 2024 was $0.1 million, down from $0.2 million in the same period last year [7] Liquidity and Financial Guidance - As of June 30, 2024, the company had total liquidity of $17.4 million, including $1.3 million in cash and cash equivalents [8] - FGI reiterated its fiscal 2024 guidance, projecting total revenue between $115 million and $128 million, and total adjusted net income between $1.2 million to $2.0 million [9] Management Commentary - The CEO noted that the industry outlook remains flat, with minimal growth expected in 2024, and highlighted challenges due to the transition to SAP software and logistics issues [2] - The company is optimistic about growth in India and has opened an office there, alongside ongoing investments in new product introductions [2]

Core Viewpoint - FGI Industries Ltd. will release its financial results for Q2 2024 on August 7, 2024, followed by a conference call on August 8, 2024, to discuss these results [1]. Company Overview - FGI Industries Ltd. is a leading global supplier of kitchen and bath products, with over 30 years of industry experience [6]. - The company specializes in various product categories, including sanitaryware (toilets, sinks, pedestals, toilet seats), bath furniture (vanities, mirrors, cabinets), shower systems, kitchen cabinetry, and other accessories [6]. - FGI's products are primarily sold for repair and remodel activities, with a smaller portion for new home or commercial construction [6]. - The company distributes its products through mass retail centers, wholesale and commercial distributors, online retailers, and specialty stores [6].

Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $31 million, reflecting a robust 13.2% increase year-over-year [9][35] - Gross profit increased to $8.4 million, a 16.8% rise compared to the previous year, with gross margin improving to 27.4% from 26.5% [36][31] - GAAP operating income was negative $0.3 million, down from breakeven year-over-year, primarily due to higher operating expenses related to growth initiatives [14] Business Line Data and Key Metrics Changes - The Shower Systems business benefited from new customer program introductions, contributing to overall revenue growth [9] - The pro Sanitaryware business rebounded as inventory levels stabilized and order flow improved, indicating a positive trend [10][30] - The Bath Furniture segment faced weaker demand but is expected to improve with new product assortments aligned to market trends [30][36] Market Data and Key Metrics Changes - The Bath Furniture market is experiencing weaker demand, with a shift towards lower-priced offerings, prompting the company to launch mid-tier products [13] - Demand trends in the shower category remain steady, with expectations for continued growth driven by new programs and products [13] Company Strategy and Development Direction - The company is focused on organic growth initiatives across its brands, products, and channels, aiming to outpace market trends through innovation [8] - Geographic expansion plans in India and the United Kingdom are seen as significant growth drivers, particularly in the bath market [10] - The imminent launch of Isla Porter, a high-end custom kitchen cabinetry business, is expected to redefine cabinetry personalization and design [32] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the ability to outpace market trends despite anticipated modest declines in the R&R segment [8] - The company expects continued positive momentum into Q2, with a favorable order cadence and pipeline [19][39] - Management has left the 2024 guidance unchanged, projecting revenue between $115 million and $128 million [15] Other Important Information - Total liquidity at the end of Q1 was $17.8 million, sufficient to fund growth initiatives, although it declined from year-end 2023 due to increased working capital requirements [37] Q&A Session Summary Question: Outlook and expectations for Q1 results - Management indicated that Q1 results aligned with expectations, with a positive order cadence and pipeline moving into Q2 [19][39] Question: Trends in key channels - Management noted a moderation of inventory levels and an organic rebound in the pro side of the business, with optimism regarding builder confidence [20][21] Question: Gross margin expectations - Management expressed confidence in maintaining gross margins, anticipating growth in gross margin dollars as higher-margin businesses scale [22][41]

Revenue Performance - Revenues increased by $3.6 million, or 13.2%, to $30.8 million for Q1 2024 compared to $27.2 million in Q1 2023, driven primarily by increases in Sanitaryware and Shower System sales [165]. - Sanitaryware sales accounted for 66.7% of total revenues in Q1 2024, increasing by 33.6% to $20.5 million from $15.4 million in Q1 2023 [166]. - Shower System revenues increased by 14.5% to $5.8 million in Q1 2024, compared to $5.0 million in Q1 2023, supported by new product programs [169]. - Revenues from the U.S. market increased by 11.8% to $19.6 million in Q1 2024, accounting for 63.7% of total revenues [171]. - Canadian revenues grew by 20.9% to $7.9 million in Q1 2024, driven by recovery in the pro channel for Sanitaryware [172]. - Revenue for the three months ended March 31, 2024, was $30,753,519, an increase from $27,162,266 in the same period of 2023, representing an increase of approximately 9.4% [211]. Profitability and Margins - Gross margin improved to 27.4% in Q1 2024, up from 26.5% in Q1 2023, benefiting from a shift towards higher-margin products and lower logistics costs [174]. - The company expects gross margins to remain consistent with those generated during fiscal year 2023, with operating margin improvement driven by volume leverage [157]. - Adjusted (loss) income from operations for the three months ended March 31, 2024, was $(199,445), compared to an adjusted income of $168,564 in the same period of 2023 [211]. - Adjusted operating margins for the three months ended March 31, 2024, were (0.6)%, down from 0.6% in the same period of 2023, indicating a decline in operational efficiency [211]. Expenses - Selling and distribution expenses rose by 30.1% to $6.1 million in Q1 2024, reflecting increased personnel and marketing costs due to inflation [177]. - General and administrative expenses increased by $0.1 million, or 6.6%, to $2.3 million for the three months ended March 31, 2024, from $2.1 million for the same period in 2023 [178]. - Business expansion expenses for the three months ended March 31, 2024, were $61,770, slightly down from $61,772 in the same period of 2023 [211]. Cash Flow and Liquidity - Total liquidity as of March 31, 2024, was $17.8 million, providing sufficient financial flexibility for organic growth strategies [157]. - Cash and working capital as of March 31, 2024, were $3.3 million and $16.8 million, respectively, with an aggregate of approximately $4.5 million drawn on credit facilities during the same period [183]. - Net cash used in operating activities was approximately $8.3 million for the three months ended March 31, 2024, primarily due to an increase in prepayments and inventories [198]. - Net cash used in investing activities was $0.6 million for the three months ended March 31, 2024, attributed to purchases of property and equipment [200]. - Net cash provided by financing activities was approximately $4.5 million for the three months ended March 31, 2024, representing net proceeds from bank loans [201]. Net Loss and Financial Position - Net loss increased by $0.2 million, or 77.3%, to $0.5 million for the three months ended March 31, 2024, compared to a net loss of $0.3 million for the same period in 2023 [182]. - Adjusted net loss for the three months ended March 31, 2024, was $439,331, up from an adjusted net loss of $164,296 in the same period of 2023, reflecting a worsening financial position [211]. - The company recorded an income tax expense of approximately $22,000 for the three months ended March 31, 2024, down from $33,000 for the same period in 2023 [181]. - Total outstanding debt as of March 31, 2024, included approximately $9.9 million under the Credit Agreement and $1.5 million under the CTBC Credit Line [189][195]. - The company may require additional cash resources in the future for investments, acquisitions, or strategic cooperation, depending on business conditions [184].

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------|-------|-------|-------|-------|-----------------------------------------------------------------------------------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance sheet strength and liquidity continues to support ongoing working | | | | | | | | | | | | | | capital needs | | | | | | | | | • | | | | | Cash and availability under o ...

FGI Industries Ltd. (FGI) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.02. This compares to loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -100%. A quarter ago, it was expected that this company would post earnings of $0.02 per share when it actually produced earnings of $0.06, delivering a surprise of 200%.Over the last four quarters, the company has surp ...

Exhibit 99.1 FGI INDUSTRIES ANNOUNCES FIRST QUARTER 2024 RESULTS EAST HANOVER, N.J., May 8, 2024 – FGI Industries Ltd. (Nasdaq: FGI) ("FGI" or the "Company"), a leading global supplier of kitchen and bath products, today announced results for the first quarter 2024. FIRST QUARTER 2024 HIGHLIGHTS (As compared to the first quarter of 2023) MANAGEMENT COMMENTARY Dave Bruce, President and CEO of FGI, stated, "The industry outlook remains relatively flat overall with our customers not expecting much growth in 20 ...

EAST HANOVER, N.J., May 3, 2024 /PRNewswire/ -- FGI Industries Ltd. (Nasdaq: FGI) ("FGI" or the "Company"), a leading global supplier of kitchen and bath products, today announced that it will issue financial results for the first quarter 2024 after the market close on Wednesday, May 8, 2024. Management will conduct a conference call on Thursday, May 9, 2024, at 9:00 am Eastern Time to discuss the quarterly results. A webcast of the conference call and accompanying presentation materials will be available i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-41207 FGI Industries Ltd. (Exact Name of Registrant as Specified in Its Charter) Cayman Islands 98-1603252 (State or Other Jurisdiction of (I.R.S. Emp ...

EAST HANOVER, N.J., March 20, 2024 /PRNewswire/ -- FGI Industries Ltd. (Nasdaq: FGI) ("FGI" or the "Company"), a leading global supplier of kitchen and bath products, today announced results for the fourth quarter and full-year 2023. FOURTH QUARTER 2023 HIGHLIGHTS(As compared to the prior-year period) Total revenues of $31.0 million, (2.6%) Gross profit of $9.0 million, +20.1%; Gross margin of 29.2%, +549 basis points Net Income of $0.5 million Adjusted net income of $0.5 million* Adjusted operating income ...