Business
FGI INDUSTRIES ANNOUNCES SECOND QUARTER 2023 RESULTS
EAST HANOVER, N.J., Aug. 9, 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., Aug. 9, 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 second quarter 2023.\n\n \n \n \n \n \n \n\n \nSECOND QUARTER 2023 HIGHLIGHTS(As compared to the second quarter of 2022)\nTotal revenues of $29.2 million, (38.9%) y/yGross profit of $8.0 million, (4.9%) y/y, Gross margin of 27.4%, +980 bps y/yNet Income of $0.1 millionAdjusted net income of $0.1 million*Adjusted operating income of $0.6 million** Adjusted net income and Adjusted operating income constitute non-GAAP financial measures. Please see the attached appendix for details.\nMANAGEMENT COMMENTARY\n\"While uneven demand trends and inventory headwinds pressured results, we maintained our focus on the long-term and made important progress on our growth and margin initiatives during the second quarter,\" stated David Bruce, President and Chief Executive Officer of FGI. \"We continued to execute on our recently announced growth initiatives and added several new awards and programs during the second quarter, including a new licensing agreement that should drive incremental growth in our sanitaryware business, as well as new sales programs that will allow us to expand our footprint into India and Eastern Europe in the coming quarters, all of which should put FGI in a strong position to return to organic growth as industry conditions normalize.\" \n\"A key focus of our BPC strategy is to increase the contribution from branded products and prioritize higher-margin markets and categories, with our success under these initiatives having been a critical factor in the meaningful gross margin improvement in recent quarters, which continued into the second quarter with record gross margin of 27.4% increasing nearly 1,000 basis points from last year,\" noted Bruce. \"As a result, our second quarter gross profit declined by less than 5% despite a nearly 40% drop in revenue. While a volume rebound in the pro channel and bath furniture could impact the gross margin trajectory in the near-term, we expect the continued benefit from our strategic focus on higher-margin categories such as shower systems and kitchen cabinetry, as well as improved operating leverage, to further benefit margins over time.\" \n\"Our strict financial discipline and focu...