Mon, Jul 15, 8:31 PM (54 days ago)
Jewett-Cameron Trading Company Ltd.'s Form 10-Q for the quarter ended May 31, 2024, reveals a mixed financial performance. Quarterly sales decreased by 16% to $15.9 million from $18.9 million in the same period last year, mainly due to poor weather and supply chain issues. Gross profit margins fell to 18.6% from 23.3%, impacted by higher shipping costs and inventory write-downs. Operating expenses were reduced by $266,872, but net income dropped to $154,862 from $734,951. For the nine months, sales declined by 14% to $33.9 million, with net income improving to $912,257 from a loss of $310,847, aided by a $2.45 million arbitration settlement. Inventory levels decreased to $13.47 million from $18.34 million. The company ended its seed cleaning operations and settled arbitration favorably. A new $6 million credit line was established with Northrim Funding Services, providing financial flexibility despite higher interest rates. Future challenges include continued supply chain disruptions and inflationary pressures.