Business
FGI INDUSTRIES ANNOUNCES FIRST QUARTER 2023 RESULTS
EAST HANOVER, N.J., May 10, 2023 /PRNewswire/ -- FGI Industries Ltd. (Nasdaq: FGI) ("FGI" or the "Company"), a leading global supplier of kitchen and bath
About this update from Fgi Industries Ltd.
[{"type":"text","content":"EAST HANOVER, N.J., May 10, 2023 /PRNewswire/ -- FGI Industries Ltd. (Nasdaq: FGI) (\"FGI\" or the \"Company\"), a leading global supplier of kitchen and bath products, today announced results for the first quarter 2023.\n\n \n \n \n \n \n \n\n \nFIRST QUARTER 2023 HIGHLIGHTS\n(As compared to the first quarter of 2022)\nTotal revenues of $27.2 million, (37.7%) y/yGross profit of $7.2 million, (4.3%), Gross margin of 26.5%, +925 bps y/yNet loss of ($0.3) millionAdjusted net loss of ($0.2) millionAdjusted operating income of $0.1 millionMANAGEMENT COMMENTARY\n\"We were very pleased with our continued strong operational execution during the first quarter in what remains a very challenging market environment,\" stated David Bruce, President and Chief Executive Officer of FGI. \"We reported a record first quarter gross margin of 26.5%, which was up 925 basis points compared to the prior-year period despite the ongoing customer de-stocking and uneven demand trends witnessed during the quarter. The inventory correction that has been a headwind to our revenue growth over the last year has persisted into 2023, with the macro uncertainty adding another layer of pressure as many large customers are taking a very cautious stance and looking to reduce inventories to levels below historical averages. This is expected to prolong the de-stocking headwinds, particularly in the pro channel where the inventory correction will likely extend into at least the second quarter. However, we remain confident in the progress we are making on our organic growth initiatives through our Brands, Products, and Channels (BPC) strategy, which combined with our strong execution should result in profitable growth once channel inventory levels normalize.\" \n\"While the uncertain demand environment, persistent inflation, and destocking headwinds are pressuring results in the near-term, we continue to take a long-term approach and remain focused on executing against our key strategic initiatives,\" noted Bruce. \"We were very excited to see our strategic focus pay off during the first quarter, as we were awarded several new product programs with key retail partners that will be key contributors to organic growth in the coming quarters. It is also important to note that during challenging market periods, we benefit from our diversified product portfolio and long-stan...