Business
FGI INDUSTRIES ANNOUNCES THIRD QUARTER 2022 RESULTS
EAST HANOVER, N.J., Nov. 9, 2022 /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., Nov. 9, 2022 /PRNewswire/ -- FGI Industries Ltd. (Nasdaq: FGI) (\"FGI\" or the \"Company\"), a leading global supplier of kitchen and bath products, today announced results for the third quarter of 2022.\n\n \n \n \n \n \n \n\n \nTHIRD QUARTER 2022 HIGHLIGHTS(As compared to the Third Quarter of 2021)\nTotal Revenues of $38.5 million, (24.3%) y/yOperating Income of $1.7 million, (7.7%) y/yNet Income of $1.3 million, (8.9%) y/yContinued progress on core \"BPC\" organic growth driversSignificant gross margin improvement of 490 bps y/yLowered full-year 2022 financial guidanceTotal revenue decreased 24% on a year-over-year basis in the third quarter of 2022, driven primarily by declines in Sanitaryware and Bath Furniture, partially offset by continued growth in Other categories (including shower systems and custom kitchen cabinetry). Third quarter revenue increased modestly in Europe, while the United States and Canada decreased. \nThe Company reported significant progress in its gross margin initiatives, with sequential improvement in gross margin of 325 basis points versus the second quarter of 2022 and a year-over-year improvement of 490 basis points compared to the prior-year period. As a result, while revenue decreased 24% on a year-over-year basis, gross profits decreased only 1.1%. \nThe Company reported operating income of $1.7 million in the third quarter of 2022, a decline of $0.1 million versus the prior-year period, as lower revenues and incremental public company costs were partially offset by a more favorable mix and lower freight costs. \nFor the three months ended September 30, 2022, the Company reported GAAP net income of $1.3 million, or $0.11 per diluted share, versus net income of $1.4 million, or $0.20 per diluted share, in the third quarter of 2021. \nMANAGEMENT COMMENTARY\n\"We made significant progress on our margin recovery initiatives during the third quarter; however, customer de-stocking negatively impacted our top-line results during the quarter,\" stated David Bruce, President and Chief Executive Officer of FGI. \"End customer demand has declined modestly during 2022 owing to macroeconomic headwinds and has remained mostly in-line with our expectations entering the year; however, the decision by key customers to aggressively reduce channel inventories caused third quarter revenues to ...