Mon, Apr 14, 8:07 PM (28 days ago)
**Jewett-Cameron Trading Company Ltd. (JCTC) - Q2 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q2 2025 revenue was $9,054,951, up 10% from Q2 2024 ($8,229,192). Six-month revenue was $18,321,951, a 2% increase from the previous year ($18,035,033). - **Profit Margins:** Gross margin decreased to 20.1% in Q2 2025 from 25.1% in Q2 2024 due to product mix and higher logistics costs. Six-month gross margin was 19.2%, down from 22.3%. - **Net Loss:** Q2 2025 net loss was $573,094 ($0.16 per share), slightly higher than the $534,145 ($0.15 per share) loss in Q2 2024. Six-month net loss was $1,231,811 ($0.35 per share), compared to a net income of $757,395 ($0.22 per share) in the previous year, which included a one-time gain from an arbitration settlement. - **Cash Flow:** Operating cash flow was negative $4,361,883 for the six months ended February 28, 2025, compared to positive $2,219,680 in the previous year. Cash and cash equivalents decreased to $435,635 from $4,853,367. **Segment Performance:** - **JCC (Pet, Fencing, and Other):** Sales increased by 8% in Q2 2025, driven by Lifetime Steel Posts® (LTP) and in-store displayers. Operating loss improved but remained significant. - **Greenwood (Industrial Wood Products):** Sales increased by 35% in Q2 2025, but operating loss widened slightly. - **JCSC (Seed Processing and Sales):** Operations ended in August 2023, with no revenue or expenses in Q2 2025. **Trends & Uncertainties:** - **Tariffs:** New tariffs on imported goods, including steel and aluminum, are increasing costs and may dampen demand. JCTC is mitigating these impacts by diversifying suppliers. - **Inflation & Interest Rates:** Higher inflation and interest rates are increasing costs and affecting consumer spending. - **Seasonality:** JCTC's business is seasonal, with stronger sales in the second half of the fiscal year. - **Inventory Management:** JCTC is focusing on optimizing inventory levels and product mix to improve efficiency and meet demand. **Future Operations:** - JCTC is investing in new in-store displayers for LTP and expanding its fencing gate line. The company is also exploring new sales channels and customers for its industrial wood products. - JCTC is evaluating options to optimize the import of Sugi Cedar and improve margins. - The company is discussing the renewal of its asset-based line of credit, which expires on June 30, 2025. - JCTC is committed to sustainable practices and has introduced compostable and post-consumer recycled (PCR) bag products under the MyEcoWorld® brand.