FGI Industries Reports Fourth Quarter and Annual Results for 2024
FGI Industries Reports Fourth Quarter and Annual Results for 2024
East Hanover, N.J., March 26, 2025 – FGI Industries Ltd. (Nasdaq: FGI), a prominent global supplier of kitchen and bath products, has unveiled its results for the fourth quarter and full-year 2024. The company reported a total revenue of $35.6 million for the fourth quarter, marking a year-over-year increase of 15.0%, alongside a full-year revenue of $131.8 million, up 12.4% from the previous year.
Despite these impressive figures, FGI faced challenges in its gross profits and margins, with Q4 gross profit recorded at $8.7 million, reflecting a 3.2% decline year-over-year. Specifically, the gross margin was at 24.6%, dropping 460 basis points from the same period in 2023. Operating losses were recorded at $1.3 million, alongside a net loss for shareholders amounting to $0.4 million. Adjusted figures indicated a net loss of $0.7 million, adjusted for non-recurring expenses.
Growth Highlights
Fourth Quarter Highlights:
- - Total Revenue: $35.6 million (up 15.0% year-over-year)
- - Gross Profit: $8.7 million (down 3.2% year-over-year)
- - Operating Loss: $1.3 million
- - Adjusted Operating Loss: $1.1 million
The revenue growth was driven by strong performance across various segments and geographical locations. Revenue from the U.S. increased by 14.7%, Canadian markets grew by 9.9%, and European revenue soared by 23.3%. Notably, sanitaryware and bath furniture saw increases of 5.8% and an impressive 40.2%, respectively. The shower systems segment also experienced a solid year, with revenue rising by 17.0% as steady demand fueled expanded customer engagement.
Full-Year Highlights:
- - Total Revenue: $131.8 million (up 12.4%)
- - Gross Profit: $35.4 million (up 10.4%)
- - Operating Loss: $2.1 million
- - Adjusted Operating Loss: $1.6 million
Management Insights
Dave Bruce, President and CEO of FGI, expressed his thoughts on the company’s current standing, stating, "While our revenue growth exceeded the market average, our gross profit margins suffered due to increased marketing and promotional expenditures aimed at supporting our customer base in the Bath Furniture sector. Overall, the industry outlook remains flat, yet our strategic investments are paving the way for revenue growth."
During the conference call, Bruce also noted the continual investment in their offerings and a future focus on sustainable growth initiatives.
Perry Lin, CFO, emphasized the rising operating expenses that have increased by 28.4% year-over-year, totaling $10 million. This expense rise is primarily attributed to investments in business growth strategies that FGI believes are critical for long-term stability and competitiveness. On the positive side, FGI ended the fourth quarter with available liquidity standing at $15.6 million.
Financial Guidance for 2025
Looking ahead, FGI Industries anticipates a fiscal revenue range for 2025 between $135 million and $145 million, with adjusted operating income projected to range between a loss of $2 million and a gain of $1.5 million.
Conclusion
FGI Industries Ltd. continues to navigate the complexities of the market, placing a priority on brand investment and technology adaptations. As they ground themselves in strong operational necessities, maintaining growth while mitigating costs will be essential in their upcoming strategies. The firm’s commitment to innovation and responsiveness will determine its trajectory as it once again reports quarterly results in the future.
For further financial inquiries or the latest updates, FGI Industries will host a conference call to discuss these results on March 27th at 9 AM ET.
Topics Consumer Products & Retail）
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