Jerash (US) (JRSH) Q4 2024 earnings summary

Executive summary

• Red Sea crisis caused significant supply chain disruptions, delaying production and reducing shipments to major U.S. customers, impacting financial performance for Q4 and fiscal 2024.

• Alternative sourcing from Turkey and Egypt is mitigating some logistics issues and costs.

• Manufacturing facilities are fully booked into the second fiscal quarter, with increased orders from both existing and new global brands, driving optimism for fiscal 2025.

• Plans for a new fabric mill in Jordan have been delayed due to geopolitical uncertainty.

Financial highlights

• Q4 2024 revenue was $21.6M, down 9.3% year-over-year; full year revenue was $117.2M, down from $138.1M.

• Q4 gross profit was $1M–$1.5M (gross margin 7.0%), down from $2.5M (10.3%) year-over-year; full year gross profit was $16.9M (14.4% margin), down from $21.8M (15.8%).

• Q4 net loss was $3.1M ($0.25/share) vs. $2.0M ($0.16/share) prior year; full year net loss was $2.0M ($0.16/share) vs. net income of $2.4M ($0.19/share) in fiscal 2023.

• Cash and restricted cash at March 31, 2024, was $14M; net working capital was $36.1M.

• Net cash from operating activities for FY24 was $2.5M, down from $10.8M in FY23.

Outlook and guidance

• Q1 FY25 revenue expected to increase 14%-15% year-over-year; full-year revenue projected up 15%-18%.

• Gross margin for FY25 expected at 13%-15%, subject to product mix, logistics costs, and new customer order flow.

• Double-digit growth anticipated in FY25, especially in the first two quarters, driven by both legacy and new customers.