Summary by Futu AI
Maison Solutions Inc. reported financial results for Q2 FY2025 ended October 31, 2024. Revenue increased 125.3% YoY to $31.0 million, driven by the acquisition of Lee Lee. Gross profit rose 161% to $8.2 million, with gross margin expanding to 26.3% from 22.7%. However, the company posted a net loss of $256,009, compared to a net income of $91,465 in Q2 FY2024.Operating expenses surged 160.7% to $7.5 million, primarily due to higher selling expenses and payroll costs from the Lee Lee acquisition. Interest expenses increased to $242,380 from $29,965 last year. The company ended the quarter with $355,670 in cash and a working capital deficit of $15.64 million.Management cited increased competition, the end of pandemic-era relief programs, and temporary store renovations as factors impacting sales at its California supermarkets. The company is focused on expanding its footprint and improving operations, while addressing material weaknesses in internal controls. Maison Solutions faces ongoing legal proceedings, including class action lawsuits related to its IPO.
