FGI INDUSTRIES ANNOUNCES SECOND QUARTER 2024 RESULTS

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]