Jewett-Cameron Trading Company (JCTC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $9.3 million, down 5% year-over-year, with strong metal fencing growth offset by declines in pet and compostable products, impacted by inflation and higher logistics costs.

• Net loss was $0.7 million ($0.19 per share) compared to net income of $1.3 million ($0.37 per share) in Q1 2024, which included a one-time arbitration settlement.

• Gross margin was 18.3%, down from 19.9% in Q1 2024, pressured by higher shipping and production costs, but improved from Q4 2024.

• Strategic focus on growth drivers, product innovation, supply chain efficiency, and asset monetization, including listing a non-core property for $9 million.

• No long-term debt; stockholders’ equity at $24.2 million as of November 30, 2024.

Financial highlights

• Metal fencing sales rose 19% year-over-year; wood fencing up 4%; pet product sales declined 31%.

• Gross profit for Q1 2025 was $1.69 million, down from $1.96 million in Q1 2024.

• Operating loss was $858,145 in Q1 2025, compared to $789,224 in Q1 2024.

• Cash balance at quarter-end was $3 million, down from $3.6 million a year ago; inventory reduced 23% to $13.5 million.

• Net cash used in operating activities was $1.78 million in Q1 2025 versus $4.63 million provided in Q1 2024.

Outlook and guidance

• Anticipates second-half fiscal 2025 growth from replenishment orders and expanded in-aisle displayers, especially for Lifetime Steel Post.

• Expects margin improvement from new supply chain partners and pricing strategies, but continued margin pressure from inflation and logistics costs.

• Ongoing product innovation and new launches, such as Adjust-A-Gate Unlimited, expected to drive future sales.

• Sufficient liquidity is expected to meet working capital needs for the remainder of fiscal 2025.