Business
iFabric Corp Reports a 21% Revenue Increase in Its Second Quarter Ended March 31, 2022
MARKHAM, ON / ACCESSWIRE / May 12, 2022 / iFabric Corp. ("iFabric" or the "Company") (TSX:IF...
About this update from Ifabric Corp.
[{"type":"text","content":"iFabric Corp Reports a 21% Revenue Increase in Its Second Quarter Ended March 31, 2022MARKHAM, ON / ACCESSWIRE / May 12, 2022 / iFabric Corp. (\"iFabric\" or the \"Company\") (TSX:IFA)(OTCQX:IFABF), today announced its financial results for its second quarter and six months ended March 31, 2022.\"I am pleased to report the results for Q2, 2022. Our Lingerie Division's impressive rebound to pre-pandemic numbers continues. Had it not been for a large new program delayed by retail customer of our Intelligent Fabrics Division, both divisions would have recorded growth in the quarter. Fortunately, this delayed program has now commenced shipping. The added cost associated with the hiring of new staff in both our sales and product development teams, along with high non-operational costs, impacted the bottom line results of the quarter. The additional staff's benefit to results will be seen as we move forward to new highs,\" said Hylton Karon, President and CEO of iFabric.\"Due to the global logistics challenges, we also took the decision to bring in much larger quantities of inventory than normal, well ahead of our usual purchasing cycles. This will allow us to maintain our exceptional fulfilment record and make timely deliveries to our customers. With firm customer commitments in hand for the second half of fiscal 2022, this is shaping up to be another record setting year for iFabric,\" concluded Mr. Karon.Q2 2022 HIGHLIGHTS:Revenues of $3,477,287 compared $2,882,660 in Q2 2021, representing an increase of $594,627 or 21%.Revenues in the Intelligent Fabrics Division, decreased by 14% or $348,172 to $2,190,631 from $2,538,803 in 2021, attributable to a major retail customer placing a shipping hold on products for a new program, as a result of other vendors of the retailer failing to meet their delivery timelines. The hold has since been lifted and these products have commenced shipping as at the date hereof.Revenues in the Intimate Apparel Division increased by 299% or $944,267, to $1,260,153 from $315,886 in Q2 2021. The increase in Intimate Apparel revenue in 2022 versus 2021 was primarily attributable to the reopening of retail stores.Gross profit as a percentage of revenue decreased to 36% in Q2 2022, from 41% in Q2 2021, as a result of higher shipping costs from China and inventory write downs in the quarter, associated with the r...