Wed, May 14, 9:28 PM (35 days ago)
**FGI Industries Ltd. (FGI) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $33.2 million, up 8.0% YoY, driven by increased sales in bath furniture and custom kitchen cabinetry. - **Gross Profit:** $8.9 million, a 5.8% increase YoY, with a stable gross margin of 26.8%. - **Net Loss:** $0.8 million, wider than the $0.5 million loss in Q1 2024, due to higher operating expenses and interest costs. - **Cash Flow:** Negative operating cash flow of $1.7 million, improved from $8.0 million in Q1 2024, due to better working capital management. - **Liquidity:** $1.2 million in cash, with $13.2 million outstanding under credit facilities, facing liquidity challenges due to tariff costs and debt covenants. **Operational Metrics:** - **Product Mix:** Sanitaryware (60.7% of revenue), bath furniture (12.3%), shower systems (17.1%), and others (9.9%). - **Geographic Sales:** U.S. (63.7%), Canada (24.6%), Europe (9.3%), and rest of the world (2.4%). **Trends and Uncertainties:** - **Positive Trends:** Growth in bath furniture and custom kitchen cabinetry sales, strategic initiatives like the "BPC" strategy, and product innovation. - **Challenges:** Elevated tariff costs, financial covenant breaches, and potential delisting from Nasdaq due to stock price below $1.00. **Future Operations Impact:** - **Strategic Initiatives:** Focus on product innovation, organic growth, and efficient capital deployment. - **Liquidity Measures:** Cost control, new product launches, and potential factoring of accounts receivable. - **Risk Factors:** Tariff uncertainties, financial covenants, and Nasdaq listing requirements. **Ticker:** FGI **Note:** FGI faces substantial doubt about its ability to continue as a going concern due to liquidity challenges and financial covenants. Management is implementing measures to improve liquidity and reduce costs.