Mon, Sep 23, 8:02 PM (89 days ago)
For the quarter ended July 31, 2024, Maison Solutions Inc. reported significant growth in financial performance, with revenues reaching $29.65 million, a 115.6% increase from $13.75 million in the same quarter of 2023. This surge was primarily due to the acquisition of Lee Lee, contributing $18.2 million in revenue. Gross profit also rose dramatically to $8.27 million, reflecting a gross margin of 27.9%, up from 22.6% a year prior. Operating expenses increased to $6.63 million, driven by higher selling costs associated with the expanded workforce and marketing efforts following the acquisition. Notably, the company achieved a net income of $700,908, a significant turnaround from a net loss of $104,939 in the previous year. Despite these positive trends, the company faces challenges, including a working capital deficit of $15.78 million and an accumulated deficit of $2.12 million. Cash flow from operations was robust at approximately $3.59 million, but liquidity remains a concern, with ongoing reliance on debt financing, including a $10.13 million note payable from the Lee Lee acquisition. The management is actively seeking to bolster revenue through further acquisitions and strategic investments, while also addressing internal control weaknesses that could impact financial reporting.