Fri, Sep 13, 2:29 PM (99 days ago)
Kewaunee Scientific Corporation's Q1 FY2025 report reveals a decline in net sales to $48,393,000 from $49,839,000 in Q1 FY2024, primarily due to a 10.7% drop in international sales attributed to construction delays in India. Domestic sales remained stable. Gross profit margin improved to 25.8%, up from 23.9%, driven by a favorable sales mix in domestic operations. Operating expenses rose to $9,913,000 (20.5% of sales) from $8,106,000 (16.3%), influenced by increased SG&A costs. Net earnings decreased to $2,193,000 ($0.74 per diluted share) from $2,474,000 ($0.86 per diluted share). The effective tax rate fell significantly to 7.9% from 26.3%, aided by a discrete tax benefit. Cash flow from operations was negative at $794,000, mainly due to reductions in accounts payable. The order backlog increased to $159.4 million, indicating potential future revenue. The company maintains a healthy liquidity position, with a current ratio of 2.5, and continues to focus on supporting its distribution channels amid ongoing uncertainties in demand and project timelines.