Chanson International Holding Announces First Half of Fiscal Year 2025 Financial Results

Core Viewpoint - Chanson International Holding demonstrated resilience in the first half of fiscal year 2025, achieving revenue growth despite market challenges, while maintaining gross margins above 40% through cost control and operational efficiency [2][4]. Financial Summary - Total revenue for the six months ended June 30, 2025, was $8.7 million, a 15.2% increase from $7.5 million in the same period last year [4][6]. - Gross profit increased to $3.9 million, up 23.6% from $3.1 million year-over-year, with a gross margin of 44.5%, compared to 41.5% previously [6][10]. - The company reported a net loss of $1.0 million, contrasting with a net income of $0.02 million for the same period last year [15][16]. Revenue Breakdown - Revenue from China Stores reached $7.8 million, a 19.7% increase from $6.5 million, primarily driven by bakery products [5][4]. - Revenue from U.S. Stores was $0.9 million, down 13.2% from $1.0 million, mainly due to decreased bakery product sales [9][4]. Product Performance - Bakery products generated $7.2 million in revenue, a 20.8% increase from $5.9 million, attributed to new store openings [7][4]. - Revenue from seasonal products rose by 39.0% to $0.51 million, while beverage product revenue fell by 42.9% to $0.12 million due to increased competition [8][7]. Operating Expenses - Operating expenses totaled $5.1 million, up from $3.7 million year-over-year, with selling expenses increasing by 26.3% to $2.8 million [11][13]. - General and administrative expenses rose by 53.7% to $2.2 million, largely due to increased allowances for credit losses [14][13]. Cash Position - As of June 30, 2025, the company had cash reserves of $22.1 million, significantly up from $12.1 million at the end of 2024 [17][18]. - Net cash used in operating activities was $0.4 million, compared to net cash provided of $0.8 million in the same period last year [18][18]. Company Overview - Chanson International Holding, founded in 2009, operates bakery, seasonal, and beverage product stores in China and the U.S., managing 60 stores in China and three in New York City [19].