Summary by Moomoo AI
Maison Solutions Inc. reported strong financial results for Q2 2024, with revenue surging 116% YoY to $29.6 million, primarily driven by the acquisition of Lee Lee supermarkets. Gross profit increased 166% to $8.3 million, with gross margin expanding to 27.9% from 22.6% in the prior year period. The company recorded net income of $700,908 compared to a net loss of $104,939 in Q2 2023.Operating expenses rose 100% to $6.6 million due to increased payroll, utilities and other costs related to the Lee Lee acquisition. The company's four California-based supermarkets saw revenue decline by $2.3 million YoY due to increased competition and the end of certain COVID-19 relief programs. Total operating expenses as a percentage of revenue improved to 22.4% from 24.2% last year.As of July 31, 2024, the company had cash and equivalents of $588,896 and a working capital deficit of $15.8 million. Management plans to expand operations through new store openings and acquisitions, estimating capital requirements of $35-40 million, with $13-16 million needed within 12 months. The company recently raised $13.3 million through its IPO and PIPE offering to support growth initiatives.
