Core Viewpoint - JBDI Holdings Limited reported a decline in financial performance for FY 2025, with total revenue decreasing by 10.1% due to reduced demand for reconditioned containers and increased operational costs, despite achieving significant cash reserves from its IPO [2][3][4]. Financial Performance - Total revenue for FY 2025 was $8.4 million, down from $9.4 million in FY 2024 [2][5]. - The company recorded a net loss of $2.7 million in FY 2025, compared to a net loss of $1.0 million in FY 2024, reflecting increased administrative expenses and revenue contraction [3][5]. - Gross profit decreased to $3.4 million with a gross margin of 39.7%, down from 45.5% in FY 2024 [3][5]. Revenue Breakdown - Revenue from reconditioned containers accounted for 63.1% of total revenue, totaling $5.3 million, which was a 15.6% decrease from FY 2024 [6]. - Sales of new containers increased by 13.7% to $755,000, while reconditioning services and sales of recycled materials showed slight declines [6]. - Singapore remained the primary market, contributing 87.9% of total revenue, although this was a decrease from the previous year [7][8]. Operating Expenses - Operating expenses rose to $6.3 million, primarily due to increased legal and professional fees related to the IPO [9]. - Administrative expenses accounted for 72.6% of revenue, reflecting a significant increase from FY 2024 [9]. Balance Sheet and Liquidity - As of May 31, 2025, JBDI held cash and cash equivalents of $2.7 million, a substantial increase from $0.2 million at the end of FY 2024 [4][12]. - Current assets totaled $4.8 million, with current liabilities at $2.4 million, indicating a healthy liquidity position [11][12]. Management Commentary - The CEO highlighted challenges in demand and cost pressures but noted progress through the IPO, which strengthened the balance sheet and positioned the company for future growth [13]. - The company aims to enhance operational efficiency and expand its services in line with sustainability trends [13]. Outlook - JBDI anticipates gradual revenue recovery driven by renewed customer demand and cost optimization initiatives, with plans to invest in supply chain resilience [14].
JBDI Holdings Reports Financial Results for Fiscal Year Ended May 31, 2025