Business
FGI INDUSTRIES ANNOUNCES FOURTH QUARTER AND FULL YEAR 2022 RESULTS
EAST HANOVER, N.J., March 27, 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., March 27, 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 fourth quarter and full-year 2022.\n\n \n \n \n \n \n \n\n \nFOURTH QUARTER 2022 HIGHLIGHTS(As compared to the fourth quarter of 2021)\nTotal revenues of $31.8 million, (39.1%) y/yGross profit of $7.5 million, gross margin of 23.7%, +920 bps y/yNet income of $0.7 million, (32.1%) y/yAdjusted net income of $1.0 million, +41.0% y/yAdjusted operating income of $1.3 million, +89.4% y/yFULL YEAR 2022 HIGHLIGHTS(As compared to full year 2021)\nTotal revenues of $161.7 million, (11.1%) y/yGross profit of $31.5 million, gross margin of 19.5%, +180 bps y/yNet income of $3.7 million, (53.5%) y/yAdjusted net income of $4.2 million, (33.6)% y/yAdjusted operating income of $5.7 million, (27.4)% y/yMANAGEMENT COMMENTARY\n\"In our first year as a public company we made important progress on our strategic initiatives and executed extremely well operationally despite the challenges we faced in 2022, which included continued inflation, ongoing supply chain disruption, persistent global unrest and widespread customer de-stocking. As a result, we are in an attractive position as we enter 2023,\" stated David Bruce, President and Chief Executive Officer of FGI. \"I am extremely proud of our team's strong operational performance during the fourth quarter, as we were able to generate significant year-over-year gross margin improvement and operating income growth despite customer de-stocking, which continued to pressure top-line results. The customer de-stocking during the fourth quarter was more significant than expected, which caused our fourth quarter revenues to fall short of our expectations. While we expect de-stocking to continue to be a headwind into the early part of 2023, we have started to see customers' inventory levels begin to normalize while order cadence slowly improved during the first two months of 2023. This recovery is more evident within the DIY channel as we expect de-stocking with our pro customers to extend further into the second quarter. We believe end customer demand has remained relatively stable, and with the ongoing momentum in our internal growth initiatives, we are well positioned for a return to revenue growth once chann...