FGI Industries reports Q1 EPS (5c), consensus (2c)

Reports Q1 revenue $30.8M, consensus $27.68M. CEO Dave Bruce stated, “The industry outlook remains relatively flat overall with our customers not expecting much growth in 2024. Despite this macro view, FGI‘s first quarter revenues beat expectations, driven primarily by volume growth of new products. While most of our businesses showed growth, I would like to highlight two segments in particular. FGI saw a rebound in the professional sanitary business, as expected, with inventory levels continuing to moderate. Our shower business continues to show organic growth driven by both existing and new products.” Bruce continued, “Geographically, we are seeing a rebound in Europe driven by a combination of new product introductions and an increase in market penetration. We remain optimistic on India. We continue to invest in our brands as well as our future growth initiatives.” CFO Perry Lin commented, “FGI ended Q1 with total available liquidity of $17.8M. Working capital was up seasonally as is typical for the first quarter. Our operating expenses increased due to investing for future growth combined with the effects of inflation. We continue to believe the highest and best use of our capital is for internal investment and this will remain our priority in the near term. We will continue to evaluate opportunities for strategic M&A.”