Sales Performance - Total Company sales were $41.3 million and $47.1 million during fiscal years ended August 31, 2025 and 2024, respectively, representing a decrease of approximately 15.5%[15] - The company experienced a decrease in sales due to worldwide tariffs imposed in 2025, which eroded margins and increased supply chain costs[52] - The top ten customers accounted for 97% of total sales in 2025, highlighting significant customer concentration risk[67] Segment Performance - The Industrial Wood Products segment, represented by Greenwood, accounted for 9% of total Company sales in fiscal 2025, compared to 8% in fiscal 2024[32] - The Company operates in four segments: Pet, Fencing and Other; Industrial wood products; Seed processing and sales; and corporate and administrative services[27] - Fencing remains the largest product category, with 422 in-store display units for the Lifetime Steel Post® (LTP) product, indicating significant growth opportunities[51] Strategic Initiatives - The Company is focusing on its fencing product lines while monetizing non-core assets and disposing of excess inventory to combat challenges faced in fiscal 2025[48] - The Company aims to lower costs, increase sales, and improve margins while introducing innovative products[48] - The company plans to focus on improving margins on core fencing products through reestablished partnerships and new sales channels[52] - The company is exploring strategic options, including potential mergers, acquisitions, and partnerships to enhance shareholder value[58] Operational Changes - The JCSC seed division was closed effective August 31, 2023, with all remaining seed inventory sold by early October 2023[25][47] - The JCSC seed division's closure was due to declining demand and rising costs, with significant capital investment required to maintain operations[25] - The Company has relisted the surplus property of the JCSC seed division at a reduced price of $7.223 million[38] - Excess inventory includes approximately $5 million in lumber and slow-moving pet products, with efforts underway to liquidate these assets[53] - The company reduced its workforce by 27% year-over-year to align with strategic objectives and improve operational efficiency[55] Financial Position - As of August 31, 2025, the company had borrowed $4,304,853 against a credit line with a maximum borrowing limit of $6 million[64] Supply Chain Management - The new strategic sourcing program established suppliers in Bangladesh and Vietnam to mitigate the impact of 85% tariffs on Chinese steel products[26] - The company is shifting to suppliers outside of China, with only 5% of metal products currently imported from China, to mitigate tariff impacts[62] Future Outlook - Fiscal 2026 is expected to remain challenging due to high tariff levels, with ongoing efforts to reduce costs and improve sales margins[65]
Jewett-Cameron Trading Co Ltd(JCTC) - 2025 Q4 - Annual Report