iFabric Corp Reports Record Revenue for Q1 2025
iFabric Corp (IFABF) reported record Q1 2025 revenues of $7.08 million, a 5% increase from Q1 2024. The Intelligent Fabrics Division saw a 25% revenue increase to $5.82 million, while the Intimate Apparel Division experienced a 40% decrease to $1.25 million. Gross profit margins declined to 39% from 44%, resulting in a net earnings decrease to $88,458 ($0.003 per share) from $550,596 ($0.018 per share) in Q1 2024.
The company faces increased U.S. tariffs on Chinese imports (30%, up 10%), affecting 23% of total revenue. Cash position strengthened to $5.64 million, and the company expanded its bank operating line to $12 million. Management anticipates continued momentum and new product segments launch later in 2025, despite regulatory costs and ongoing leaching study expenses for Protx2.
iFabric Corp (IFABF) ha registrato ricavi record nel primo trimestre 2025 pari a 7,08 milioni di dollari, con un aumento del 5% rispetto al primo trimestre 2024. La Divisione Tessuti Intelligenti ha visto un incremento dei ricavi del 25%, raggiungendo 5,82 milioni di dollari, mentre la Divisione Intimo ha subito una diminuzione del 40%, scendendo a 1,25 milioni di dollari. Il margine lordo è calato al 39% dal 44%, portando a una riduzione dell’utile netto a 88.458 dollari (0,003 dollari per azione) rispetto a 550.596 dollari (0,018 dollari per azione) nel primo trimestre 2024.
L’azienda deve affrontare un aumento delle tariffe USA sulle importazioni cinesi (30%, +10%), che incidono sul 23% dei ricavi totali. La posizione di cassa si è rafforzata a 5,64 milioni di dollari e la società ha ampliato la linea di credito bancaria a 12 milioni di dollari. La direzione prevede un continuo slancio e il lancio di nuove linee di prodotto entro la fine del 2025, nonostante i costi regolatori e le spese in corso per lo studio di rilascio del Protx2.
iFabric Corp (IFABF) reportó ingresos récord en el primer trimestre de 2025 por 7,08 millones de dólares, un aumento del 5% respecto al primer trimestre de 2024. La División de Tejidos Inteligentes experimentó un incremento del 25% en ingresos, alcanzando 5,82 millones de dólares, mientras que la División de Ropa Íntima sufrió una caída del 40%, llegando a 1,25 millones de dólares. Los márgenes brutos disminuyeron al 39% desde el 44%, resultando en una reducción de las ganancias netas a 88.458 dólares (0,003 dólares por acción) desde 550.596 dólares (0,018 dólares por acción) en el primer trimestre de 2024.
La empresa enfrenta un aumento de los aranceles estadounidenses sobre las importaciones chinas (30%, +10%), que afectan al 23% de los ingresos totales. La posición de efectivo se fortaleció a 5,64 millones de dólares y la compañía amplió su línea de crédito bancaria a 12 millones de dólares. La dirección anticipa un impulso continuo y el lanzamiento de nuevos segmentos de productos a finales de 2025, a pesar de los costos regulatorios y los gastos en curso del estudio de lixiviación para Protx2.
iFabric Corp (IFABF)는 2025년 1분기 매출액이 708만 달러로 2024년 1분기 대비 5% 증가하며 역대 최고치를 기록했습니다. 인텔리전트 패브릭 부문은 매출이 25% 증가한 582만 달러를 기록한 반면, 인티밋 어패럴 부문은 40% 감소해 125만 달러에 그쳤습니다. 총이익률은 44%에서 39%로 하락했고, 순이익은 2024년 1분기 55만 596달러(주당 0.018달러)에서 8만 8,458달러(주당 0.003달러)로 감소했습니다.
회사는 중국산 수입품에 대한 미국 관세가 30%(10%p 인상)로 증가해 전체 매출의 23%에 영향을 미치고 있습니다. 현금 보유액은 564만 달러로 강화되었으며, 은행 운영 한도도 1,200만 달러로 확대되었습니다. 경영진은 규제 비용과 Protx2 침출 연구 비용에도 불구하고 2025년 후반에 새로운 제품 라인 출시와 지속적인 성장세를 기대하고 있습니다.
iFabric Corp (IFABF) a annoncé des revenus records au premier trimestre 2025 de 7,08 millions de dollars, soit une augmentation de 5 % par rapport au premier trimestre 2024. La division des tissus intelligents a vu ses revenus augmenter de 25 % pour atteindre 5,82 millions de dollars, tandis que la division des sous-vêtements a connu une baisse de 40 % à 1,25 million de dollars. La marge brute a diminué de 44 % à 39 %, entraînant une baisse du bénéfice net à 88 458 dollars (0,003 dollar par action) contre 550 596 dollars (0,018 dollar par action) au premier trimestre 2024.
L’entreprise fait face à une augmentation des droits de douane américains sur les importations chinoises (30 %, +10 %), affectant 23 % du chiffre d’affaires total. La trésorerie s’est renforcée à 5,64 millions de dollars, et la société a étendu sa ligne de crédit bancaire à 12 millions de dollars. La direction prévoit un maintien de la dynamique et le lancement de nouveaux segments de produits plus tard en 2025, malgré les coûts réglementaires et les dépenses continues liées à l’étude de lixiviation pour Protx2.
iFabric Corp (IFABF) meldete Rekordumsätze im ersten Quartal 2025 von 7,08 Millionen US-Dollar, ein Anstieg von 5 % gegenüber dem ersten Quartal 2024. Die Abteilung für Intelligente Stoffe verzeichnete einen Umsatzanstieg von 25 % auf 5,82 Millionen US-Dollar, während die Abteilung für Dessous einen Rückgang von 40 % auf 1,25 Millionen US-Dollar erlebte. Die Bruttogewinnmarge sank von 44 % auf 39 %, was zu einem Rückgang des Nettogewinns auf 88.458 US-Dollar (0,003 US-Dollar je Aktie) von 550.596 US-Dollar (0,018 US-Dollar je Aktie) im ersten Quartal 2024 führte.
Das Unternehmen sieht sich mit erhöhten US-Zöllen auf chinesische Importe konfrontiert (30 %, plus 10 %), die 23 % des Gesamtumsatzes betreffen. Die Barposition wurde auf 5,64 Millionen US-Dollar gestärkt, und die Bankkreditlinie wurde auf 12 Millionen US-Dollar erweitert. Das Management erwartet trotz regulatorischer Kosten und laufender Ausgaben für die Leaching-Studie von Protx2 weiterhin Schwung und die Einführung neuer Produktsegmente im weiteren Verlauf des Jahres 2025.
- Record quarterly revenue of $7.08 million, up 5% YoY
- Intelligent Fabrics Division revenue increased 25% to $5.82 million
- Cash position improved by $3.58 million to $5.64 million
- Bank operating line increased to $12 million from $6.75 million
- Working capital improved to $19.88 million from $19.61 million
- Net earnings dropped 84% to $88,458 from $550,596 YoY
- Gross profit margins declined to 39% from 44%
- Intimate Apparel Division revenue decreased 40% to $1.25 million
- Selling, general and administrative costs increased 13% to $2.4 million
- U.S. tariffs on Chinese imports increased by 10% to 30%
MARKHAM, ON / ACCESS Newswire / May 15, 2025 / iFabric Corp. (TSX:IFA)(OTCQX:IFABF), a leader in innovative textile and performance-apparel technologies, today announced record revenues for a first-quarter - for the three months ending March 31, 2025 ("Q1 2025").
"I am pleased to report that another record revenue quarter was delivered in Q1 2025. We anticipate continued momentum for the balance of 2025, with the latter part of the year delivering exciting new product segments, which are currently in production. This speaks to the confidence that our retail partners have in our ability to design and deliver an ever-increasing and innovative range of offerings," stated Hylton Karon, group President and C.E.O.
"Whilst we did see a significant increase in costs during the quarter, this was mainly due to ongoing regulatory costs and, in particular, costs related to the current leaching study for Protx2 and to build additional revenue streams for the Company. I am confident that these investments will yield significant future benefits for iFabric," continued Mr. Karon.
"In regard to tariffs, as of the current date, the U.S. has adjusted tariffs on Chinese imports to
HIGHLIGHTS FOR FIRST QUARTER ENDED MARCH 31, 2025:
Total revenues of
$7,080,440 in Q1 2025 compared to$6,754,624 in Q1 2024, representing an increase of$325,816 or5% .Revenues for the Intelligent Fabrics Division were
$5,824,451 in Q1 2025, representing an increase of$1,158,162 or25% , from$4,666,289 in Q1 2024. These revenue gains were as a result of increased apparel sales in Canada and the US from new and existing programs.Revenues for the Intimate Apparel Division decreased to
$1,250,739 in Q1 2025 from$2,088,335 in Q1 2024, representing a decrease of$837,596 or40% . A new and major program for this Division commenced shipping in Q1 2024. However, by comparison, there were no such new programs for this segment in Q1 2025.Gross profit margins decreased by
5% to 39% in Q1 2025 compared44% in 2024, primarily due to product mix, with a higher proportion of lower margin products being shipped in the current quarter.Gross profit in dollars was
$2,739,454 in Q1 2025 compared to$2,961,122 in Q1 2024, a decrease of7% or$221,668 attributable to the lower gross margins.Selling, general and administrative costs increased by
$279,704 (13% ) to$2,400,918 in Q1 2025 compared to$2,121,214 in 2024, as a result of increased regulatory costs and, in particular the cost of the ongoing leaching study for Protx2, as well as personnel, advertising and travel costs incurred to support future business initiatives.Adjusted EBITDA* for Q1 2025 amounted to
$318,478 compared to adjusted EBITDA of$855,380 in 2024, representing a decrease of$536,902 as a result of decreased gross margin dollars and increased expenditures as discussed above.Net earnings after tax attributable to iFabric's shareholders during Q1 2025 decreased to
$88,458 ($0.00 3 per share, basic and diluted) from$550,596 ($0.01 8 per share, basic and diluted), for the same reasons.Working capital (excluding a demand loan classified as current, but not requiring repayment in 2025) amounted to
$19,883,462 at the end of Q1 2025 compared to$19,608,256 as at December 31, 2024, an increase of$275,206 , mainly attributable to the EBITDA for the quarter.Cash increased by
$3,582,599 t o$5,640,755 as at March 31, 2025 from$2,058,156 at the end of the previous quarter, as a result of strong collections during the current quarter balanced by a minority interest purchase and resulting term loan previously announced.The Company's increased its bank operating line to
$12,000,000 during the quarter from the prior$6,750,000 at the end of the prior quarter, in anticipation of the need to finance significant revenue growth during the latter part of fiscal 2025 and beyond. This line was unutilized at March 31, 2025 and at the end of the previous quarter, leaving the full line of$12,000,000 available to finance future business.
Q1 2025 FINANCIAL HIGHLIGHTS:
Three months ended March 31, | 2025 | 2024 | ||||||
Revenue | 7,080,440 | 6,754,624 | ||||||
Earnings from operations | 115,380 | 679,053 | ||||||
Share based compensation | (131,220 | ) | (77,190 | ) | ||||
Adjusted EBITDA *(Note) | 318,478 | 855,380 | ||||||
Net earnings before tax | 95,322 | 694,525 | ||||||
Net earnings after tax | ||||||||
attributable to shareholders | 88,458 | 550,596 | ||||||
Other comprehensive earnings (loss) | (4,657 | ) | 92,974 | |||||
Total comprehensive earnings | 83,801 | 643,732 | ||||||
Net earnings per share | ||||||||
Basic | 0.003 | 0.018 | ||||||
Diluted | 0.003 | 0.018 | ||||||
*Note: Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization and share based compensation
Complete Financial Statements are available on SEDAR+ at www.sedarplus.ca and on the company's website at www.ifabriccorp.com.
About iFabric Corp:
Headquartered in Markham, Ontario, iFabric, www.ifabriccorp.com, is listed on the TSX and, currently has 30.3 million shares issued and outstanding. Its two strategic divisions offer a variety of products and services through wholly-owned subsidiaries, namely, Intelligent Fabric Technologies (North America) Inc. ("IFTNA") and Coconut Grove Pads Inc. ("Coconut Grove").
IFTNA is focused on development and sale of high-performance sports apparel, medical protective apparel, consumer protective apparel, and proprietary treatments that provide "intelligent" properties to fabrics, foams, plastics, and numerous other surfaces, thereby improving the safety and well-being of the user. Such intelligent properties include antiviral and antibacterial characteristics, water-repellence and UV protection, among others.
Coconut Grove, operating as Coconut Grove Intimates, is a designer, manufacturer, distributor, licensor and licensee of ladies' intimate apparel products and accessories.
*USE OF NON-GAAP MEASURES
Certain measures in this document do not have any standardized meaning as prescribed by International Financial Reporting Standards ("IFRS") and, therefore, are not considered generally accepted accounting principles ("GAAP") measures and may not be comparable to similar measures presented by other issuers. Where non-GAAP measures or terms are used, definitions are provided. The Company believes that certain non-GAAP financial measures provide important information regarding the operational performance and related trends of the Company's business. In this document and in the Company's consolidated financial statements, unless otherwise noted, all financial data is prepared in accordance with IFRS.
Adjusted EBITDA
The Company uses Adjusted EBITDA to assess its operating performance without the effects of (as applicable): current and deferred tax expense, finance costs, interest income, depreciation and amortization of plant assets, other gains and losses, impairment loss, share-based compensation and other non-recurring items. The Company adjusts for these factors as they may be non-cash, unusual in nature and may not optimally represent its operating performance. Adjusted EBITDA is not intended to be representative of net earnings from operations or an alternative measure to cash provided by operating activities determined in accordance with IFRS.
The table below reconciles Adjusted EBITDA and Net earnings attributable to owners of the Company, calculated in accordance with IFRS:
Three months ended March 31, | 2025 | 2024 | ||||||
Net earnings after tax attributable to shareholders | 88,458 | 550,596 | ||||||
Add (deduct): | ||||||||
Net earnings attributable to non-controlling interest | - | 162 | ||||||
Provision for income taxes | 6,864 | 143,767 | ||||||
Share-based compensation | 131,220 | 77,190 | ||||||
Amortization of deferred development costs | 8,901 | 8,901 | ||||||
Depreciation of plant, property and equipment and right-of-use assets | 47,038 | 47,876 | ||||||
Interest expense | 35,997 | 26,888 | ||||||
Adjusted EBITDA | 318,478 | 855,380 | ||||||
Add (deduct): | ||||||||
Share-based compensation | (131,220 | ) | (77,190 | ) | ||||
EBITDA | 187,258 | 778,190 | ||||||
FORWARD-LOOKING STATEMENTS
Forward-looking statements provide an opinion as to the effect of certain events and trends on the business. Certain statements contained in this news release constitute forward-looking statements. The use of any words such as "anticipate", "continue", "plans", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the extent and impact of health pandemic outbreaks on our business; general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; the actual results of the Company's future operations; competition; changes in legislation affecting the Company; the ability to obtain and maintain required permits and approvals, the timing and availability of external financing on acceptable terms; lack of qualified, skilled labour or loss of key individuals.
A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's annual information form dated March 28, 2025 and other filings with the Canadian securities regulators available under the Company's profile on SEDAR+ at www.sedarplus.ca. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance, or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Any financial outlook or future oriented financial information in this news release, as defined by applicable securities legislation, has been approved by management of iFabric. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's reasonable expectations as to the anticipated results of its proposed business activities. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or any other reason except as required by applicable securities laws.
FOR FURTHER INFORMATION please contact:
Hylton Karon, President and CEO
Tel: 905.752.0566 ext 201
Email: hyltonk@ifabriccorp.com
Hilton Price, CFO
Tel: 647.465.6161
Email: hilton.price@rogers.com
Website: www.ifabriccorp.com
Neither the TSX Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this press release.
SOURCE: iFabric Corp
View the original press release on ACCESS Newswire
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