Maison Solutions Inc. (Maison), a specialty grocery retailer, reported a significant increase in financial performance for the quarter ended July 31, 2024. Net revenues soared by 115.6% to $29.6 million, up from $13.8 million in the same quarter of the previous year, primarily due to the inclusion of revenues from the newly acquired subsidiary, Lee Lee. Gross profit followed suit, jumping 166.1% to $8.3 million with a gross margin increase of 5.3% to 27.9%. Operating expenses rose by 99.6% to $6.6 million, attributed to the acquisition of Lee Lee and increased selling expenses. The company achieved a net income of $700,908, a significant turnaround from the net loss of $104,939 in the prior year's quarter. Cash flow from operating activities was robust at $3.6 million, driven by net income and non-cash adjustments...Show More

Maison Solutions Inc. (Maison), a specialty grocery retailer, reported a significant increase in financial performance for the quarter ended July 31, 2024. Net revenues soared by 115.6% to $29.6 million, up from $13.8 million in the same quarter of the previous year, primarily due to the inclusion of revenues from the newly acquired subsidiary, Lee Lee. Gross profit followed suit, jumping 166.1% to $8.3 million with a gross margin increase of 5.3% to 27.9%. Operating expenses rose by 99.6% to $6.6 million, attributed to the acquisition of Lee Lee and increased selling expenses. The company achieved a net income of $700,908, a significant turnaround from the net loss of $104,939 in the prior year's quarter. Cash flow from operating activities was robust at $3.6 million, driven by net income and non-cash adjustments. Maison's cash position was strengthened with $588,896 in cash and cash equivalents. The company's expansion strategy includes plans to open new stores and acquire additional supermarkets, with an estimated capital investment of $35 million to $40 million. Despite the positive quarter, Maison acknowledged material weaknesses in internal control over financial reporting and is taking steps to remediate these issues.