FGI Industries .(FGI) ZACKS·2025-03-27 17:06Core Insights - FGI Industries Ltd. reported fourth-quarter 2024 results with revenues exceeding estimates and showing year-over-year growth, although earnings declined due to new business costs and promotional expenses [1][3][6] Revenue Performance - Total revenues for Q4 2024 reached $35.6 million, surpassing the Zacks Consensus Estimate of $32.8 million by 8.5% and increasing 15% from the previous year [3] - For the full year 2024, total revenues increased by 12.4% year over year to $131.8 million [7] Segment Analysis - Revenues in the Sanitaryware segment rose 5.8% year over year to $21.8 million [4] - Bath Furniture revenues surged 40.2% year over year to $3.5 million, attributed to new business wins and market-aligned pricing [4] - Shower Systems segment revenues grew 17% year over year to $6.7 million, driven by steady demand and increased sales [4] - Other revenues, primarily from Kitchen Cabinets, increased by 68.3% year over year to $3.6 million, supported by order momentum and expanded dealer count [5] Operating Expenses and Margins - Total operating expenses for Q4 were $10 million, up 28.4% year over year, leading to a gross margin contraction of 460 basis points to 24.6% [6] - For the full year 2024, total operating expenses were $37.5 million, an increase from $29.8 million the previous year, with a gross margin of 26.9%, down 50 basis points year over year [7] Balance Sheet Overview - As of December 31, 2024, FGI Industries had a cash balance of $4.6 million, down from $7.8 million at the end of 2023 [8] - Total liquidity stood at $15.6 million, including $11 million available under credit facilities [8] - Total debt increased to $14.5 million at the end of 2024, up from $7 million a year ago [8] Future Outlook - FGI Industries expects net revenues for 2025 to be in the range of $135 million to $145 million [10]