The following is a summary of the FGI Industries Ltd. (FGI) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Q2 2024 revenue reported at $29.4 million, a year-over-year increase of 0.6%.

• Gross profit increased by 11.9% year-over-year to $9 million, with an improvement in gross margin to 30.5%, an increase of 310 basis points from Q2 2023.

• Operating expenses rose to $9.4 million from the previous year's $7.4 million due to investments in growth initiatives.

• GAAP operating income was negative $0.5 million, affected by higher operating expenses.

Business Progress:

• Launch of Isla Porter, a digital-only custom kitchen joint venture.

• Geographic expansion in India initiated with a new office and showroom.

• Strengthened product offerings in the Bath Furniture segment to align with market trends and pricing.

• Notable revenue growth in custom kitchen cabinetry and Shower Systems sectors.

Opportunities:

• Expansion of digital sales platforms and new customer programs expected to drive future growth.

• Engagement of new distribution partners in India and the potential for increased market penetration in a burgeoning bath market.

Risks:

• Shipments delay due to transition to SAP enterprise software and ongoing ocean freight disruptions could temporarily affect fulfillment and revenue recognition in the short term.

• Impact of inflation on operating expenses.

More details: FGI Industries IR

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