US' Jerash Holdings' revenue at $138.1 mn in FY23

Gross profit also saw a decline, dropping to $21.8 million in FY23 from $27.3 million in the previous year. The gross margin reduced to 15.8 per cent, compared with 19.1 per cent in FY22, the company said in a press release.

Jerash's operating expenses saw a slight uptick in fiscal 2023, amounting to $17.4 million against the previous year's $16.8 million. This contributed to a decreased operating income of $4.4 million, a significant drop from $10.5 million in fiscal 2022.

Net income for FY23 was down at $2.4 million, equivalent to $0.19 per share, compared to $7.9 million, or $0.67 per share, in FY22.

Revenue in the fourth quarter (Q4) of FY23 decreased by 23.2 per cent from $30.9 million in the previous year to $23.8 million. The decline was attributed primarily to lower sales from two major US customers.

Gross profit in Q4 FY23 stood at $2.5 million, compared with $4.7 million in the previous year. Gross margin also decreased to 10.3 per cent from 15.1 per cent, due to a lower proportion of US orders and a shift in product mix.

Operating expenses in Q4 FY23 were marginally lower at $4.3 million, compared to $4.6 million in the same period of the previous year. However, the company reported an operating loss of $1.8 million compared to the previous year's operating income of $126,000.

Net loss in Q4 FY23 worsened to $2 million, or $0.16 per share, compared to a net loss of $131,000, or $0.01 per share, in the same period last year.

Sam Choi, Jerash's chairman and chief executive officer, said: "Revenue and gross margin for Q4 FY23 continued to be impacted by fewer orders from our two major US customers, as well as a shift in product mix to lower margin items. We also are comparing against a particularly strong revenue quarter a year ago. The retail sector continues to face a weak economic environment, as consumers are limiting their spending on higher priced items.

"On the positive front, our joint venture with Busana Apparel Group is progressing well. Initial feedback from Busana's global branded customers indicate their keen interest in geographically diversifying production to Jordan from Asia, in part, to take advantage of duty-free agreements with the US and other countries. We anticipate production as part of the joint venture to start in the second half of the current fiscal.”

Fibre2Fashion News Desk (DP)