The following is a summary of the Jerash Holdings (US), Inc. (JRSH) Q1 2025 Earnings Call Transcript:
Financial Performance:
Jerash Holdings reported an increase in revenue for Q1 2025, achieving a record $40.9 million, up 17.8% from the previous year.
Gross margin decreased to 11.3% from 16% in the same period last year primarily due to higher raw material import costs and additional manufacturing costs.
Net loss was $1.4 million, in contrast with a net income of $495,000 in the same period last year, reflecting increased expenses and operational challenges.
Business Progress:
Jerash has diversified its customer base successfully, securing additional trial orders from major global brands and fully booking production through December 2024.
A strategic partnership with Busana Apparel Group is yielding trial orders from four global brands.
The company is actively addressing supply chain disruptions and is implementing cost reduction projects to improve efficiency.
Opportunities:
Diversifying customer base has proven successful, with an increased pace in purchase orders from long-term global clients as well as new major brands.
Expanding product mix and entering into strategic partnerships such as the joint venture with Busana Apparel Group.
Risks:
Continued disruptions due to turmoil in the Red Sea affecting shipping routes, contributing to increased raw material costs and operational delays.
Geopolitical situations in surrounding regions pose potential risks; however, contingency plans are in place.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
