FGI INDUSTRIES ANNOUNCES FOURTH QUARTER AND FULL-YEAR 2024 RESULTS

Core Insights - FGI Industries Ltd. reported a total revenue of $35.6 million for Q4 2024, marking a year-over-year increase of 15.0$8.7 million, which is a decrease of 3.2% compared to the previous year, resulting in a gross margin of 24.6%, down 460 basis points [5][6] - The overall industry outlook remains flat, but FGI's strategic investments are driving revenue growth above the market average [2][3] Fourth Quarter 2024 Highlights - Revenue growth was driven by increases in the US (14.7%), Canada (9.9%), and Europe (23.3%) markets [2] - Sanitaryware revenue reached $21.8 million, up from$20.6 million year-over-year, while Bath Furniture revenue surged by 40.2% [4][12] - The Other segment, including Covered Bridge, saw a significant revenue increase of 68.3% due to order momentum and expanded dealer count [2] Full-Year 2024 Highlights - Total revenue for the year was $131.8 million, reflecting a 12.4$35.4 million, a 10.4% increase, with a gross margin of 26.9%, down 50 basis points [5] - The company reported an operating loss of $2.1 million and a net loss attributable to shareholders of$1.2 million for the full year [5] Management Commentary - The CEO emphasized the importance of strategic investments in brands and products, which are yielding positive results [2] - The CFO noted a significant increase in operating expenses by 28.4% year-over-year, primarily due to investments in growth initiatives [3] Financial Resources and Liquidity - As of December 31, 2024, FGI had total liquidity of $15.6 million, including$4.6 million in cash and cash equivalents [10] - The company ended the fourth quarter with total debt of $14.5 million [10] Financial Guidance - For fiscal 2025, FGI anticipates total net revenue between$135 million and $145 million, with adjusted operating income expected to range from$(2.0) million to $(1.5) million [13]