Jerash Holdings Reports Financial Results for Fiscal 2025 Second Quarter
Rhea-AI Summary
Jerash Holdings (NASDAQ:JRSH) reported strong fiscal 2025 second quarter results with revenue increasing 20.6% to $40.2 million and gross profit rising 31.4% to $7.1 million. Net income grew 80.1% to $665,000, with EPS of $0.05. The company's gross margin improved to 17.5% from 16.1% year-over-year. Looking ahead, Jerash expects Q3 revenue to increase by 35-38% and full-year revenue to grow by 30-35%. The company maintains a strong balance sheet with $17.9 million in cash and restricted cash, and announced a quarterly dividend of $0.05 per share.
Positive
- Revenue increased 20.6% to $40.2 million in Q2 FY2025
- Gross profit rose 31.4% to $7.1 million
- Net income grew 80.1% to $665,000
- Gross margin improved to 17.5% from 16.1%
- Strong Q3 guidance of 35-38% revenue growth
- Factories fully booked through first half of 2025
- Maintains quarterly dividend of $0.05 per share
Negative
- Operating expenses increased to $5.9 million from $4.5 million
- Higher logistics costs impacting operations
- First half FY2025 showed net loss of $702,000
- Operating income declined to $306,000 from $2.0 million in first half
- Net cash from operations decreased to $2.4 million from $8.2 million
News Market Reaction
On the day this news was published, JRSH gained 11.33%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Revenue Increases 21 Percent; Gross Profit Rises 31 Percent -
- Company Returns to Profitability as Global Customers Regain Confidence -
FAIRFIELD, NJ / ACCESSWIRE / November 12, 2024 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the "Company" or "Jerash"), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced financial results for its fiscal 2025 second quarter, ended September 30, 2024.
"Results for our second fiscal quarter demonstrated confidence by our global customers working with Jerash and the competitive advantages of doing business in Jordan," said Sam Choi, Jerash's chairman and chief executive officer. "Purchase orders for export shipments to our customers in the U.S. and Europe have been steadily increasing, and we are pleased to report that our factories are now fully booked through the first half of calendar year 2025.
"Also, on a positive note from a geopolitical perspective, our export trade routes in the region returned to a more normalized environment in August, which, in turn, is positively affecting profitability. Gross margin for the fiscal second quarter increased to 17.5 percent from 16.1 percent a year ago, and from 11.3 percent in the preceding fiscal first quarter.
"We are continuing to attract new global brands, further diversify our customer base, and expand product mix. We have good visibility well into fiscal 2026, and with momentum continuing, we are beginning to plan for a potential expansion of manufacturing capacity to support future growth," Choi added.
Outlook
Revenue for the fiscal 2025 third quarter is expected to increase by 35-38 percent from the same quarter last year; full-year revenue is expected to increase by 30-35 percent.
Gross margin goal for fiscal year 2025 is expected to be approximately 14-15 percent, subject to logistics and shipping charges and product mix.
Fiscal 2025 Second Quarter Results
Fiscal 2025 second quarter revenue increased 20.6 percent to
Gross profit for the fiscal 2025 second quarter increased 31.4 percent to
Operating expenses totaled
Operating income increased to
Total other expenses were
Net income in the fiscal 2025 second quarter increased 80.1 percent to
Comprehensive income attributable to the Company's common stockholders totaled
Six-Month Fiscal Year 2025 Results
Revenue for the first six months of fiscal year 2025 rose to
Gross profit was
Operating expenses for the first six months of fiscal year 2025 were
Net loss for the first six months of fiscal year 2025 was
Comprehensive loss attributable to Jerash's common stockholders was
Balance Sheet, Cash Flow, and Dividends
Cash and restricted cash totaled
On November 8, 2024, Jerash's board of directors approved a regular quarterly dividend of
Conference Call
Jerash Holdings will host an investor conference call to discuss its fiscal 2025 second quarter results today, November 12, 2024, at 9:00 a.m. Eastern Time.
Phone: 888-506-0062 (domestic); 973-528-0011 (international)
Conference ID: 454213
A live and archived webcast will be available online in the investor relations section of Jerash's website at www.jerashholdings.com. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website.
About Jerash Holdings (US), Inc.
Jerash manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands and retailers, including VF Corporation (which owns brands such as The North Face, Timberland, and Vans), New Balance, G-III (which licenses brands such as Calvin Klein, Tommy Hilfiger, DKNY, and Guess), American Eagle, and Skechers. Jerash's existing production facilities comprise six factory units and four warehouses, and Jerash currently employs approximately 6,000 people. Additional information is available at www.jerashholdings.com.
Forward-Looking Statements
This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "seek", "potential," "outlook" and similar expressions are intended to identify forward-looking statements. Such statements, including, but not limited to, Jerash's current views with respect to future events and its financial forecasts, and expansion of the customer base among high-profile global brands, are subject to such risks and uncertainties. Many factors could cause actual results to differ materially from the statements made, including those risks described from time to time in filings made by Jerash with the U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Statements contained in this news release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Jerash does not intend and does not assume any obligation to update these forward-looking statements, other than as required by law.
Contact:
PondelWilkinson Inc.
Judy Lin or Roger Pondel
310-279-5980
jlin@pondel.com
rpondel@pondel.com
# # #
(tables below)
JERASH HOLDINGS (US), INC.,
AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
| For the Three Months Ended |
|
| For the Six Months Ended |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Revenue, net |
| $ | 40,240,127 |
|
| $ | 33,357,108 |
|
| $ | 81,175,843 |
|
| $ | 68,092,765 |
|
Cost of goods sold |
|
| 33,182,244 |
|
|
| 27,985,077 |
|
|
| 69,478,089 |
|
|
| 57,153,194 |
|
Gross Profit |
|
| 7,057,883 |
|
|
| 5,372,031 |
|
|
| 11,697,754 |
|
|
| 10,939,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selling, general, and administrative expenses |
|
| 5,449,386 |
|
|
| 4,240,588 |
|
|
| 10,449,130 |
|
|
| 8,475,506 |
|
Stock-based compensation expenses |
|
| 474,088 |
|
|
| 243,448 |
|
|
| 943,023 |
|
|
| 484,250 |
|
Total Operating Expenses |
|
| 5,923,474 |
|
|
| 4,484,036 |
|
|
| 11,392,153 |
|
|
| 8,959,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income from Operations |
|
| 1,134,409 |
|
|
| 887,995 |
|
|
| 305,601 |
|
|
| 1,979,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other Income (Expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses |
|
| (503,149 | ) |
|
| (359,234 | ) |
|
| (983,352 | ) |
|
| (748,185 | ) |
Other income, net |
|
| 139,166 |
|
|
| 192,523 |
|
|
| 193,201 |
|
|
| 282,750 |
|
Total other expenses, net |
|
| (363,983 | ) |
|
| (166,711 | ) |
|
| (790,151 | ) |
|
| (465,435 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income (loss) before provision for income taxes |
|
| 770,426 |
|
|
| 721,284 |
|
|
| (484,550 | ) |
|
| 1,514,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income tax expenses |
|
| 105,877 |
|
|
| 352,340 |
|
|
| 217,598 |
|
|
| 650,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income (loss) |
|
| 664,549 |
|
|
| 368,944 |
|
|
| (702,148 | ) |
|
| 864,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net gain (loss) attributable to noncontrolling interest |
|
| 9,261 |
|
|
| 3,327 |
|
|
| (12,220 | ) |
|
| 1,916 |
|
Net income (loss) attributable to Jerash Holdings (US), Inc.'s Common Stockholders |
| $ | 655,288 |
|
| $ | 365,617 |
|
| $ | (689,928 | ) |
| $ | 862,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income (loss) |
| $ | 664,549 |
|
| $ | 368,944 |
|
| $ | (702,148 | ) |
| $ | 864,059 |
|
Other Comprehensive Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation gain (loss) |
|
| 7,583 |
|
|
| (59,841 | ) |
|
| 16,496 |
|
|
| (154,500 | ) |
Total Comprehensive Income (Loss) |
|
| 672,132 |
|
|
| 309,103 |
|
|
| (685,652 | ) |
|
| 709,559 |
|
Comprehensive gain (loss) attributable to noncontrolling interest |
|
| 9,261 |
|
|
| 3,327 |
|
|
| (12,220 | ) |
|
| 1,916 |
|
Comprehensive Income (Loss) Attributable to Jerash Holdings (US), Inc.'s Common Stockholders |
| $ | 662,871 |
|
| $ | 305,776 |
|
| $ | (673,432 | ) |
| $ | 707,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Earnings (Loss) Per Share Attributable to Common Stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
| $ | 0.05 |
|
| $ | 0.03 |
|
| $ | (0.06 | ) |
| $ | 0.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted Average Number of Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 12,294,840 |
|
|
| 12,294,840 |
|
|
| 12,294,840 |
|
|
| 12,294,840 |
|
Diluted |
|
| 12,460,241 |
|
|
| 12,294,840 |
|
|
| 12,294,840 |
|
|
| 12,294,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Dividend per share |
| $ | 0.05 |
|
| $ | 0.05 |
|
| $ | 0.10 |
|
| $ | 0.10 |
|
JERASH HOLDINGS (US), INC.,
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| September 30, |
|
| March 31, |
| |||
| (Unaudited) |
|
|
|
| |||
ASSETS |
|
|
| |||||
Current Assets: |
|
|
|
|
|
| ||
Cash |
| $ | 16,338,578 |
|
| $ | 12,428,369 |
|
Accounts receivable, net |
|
| 5,793,228 |
|
|
| 5,417,513 |
|
Inventories |
|
| 20,206,799 |
|
|
| 27,241,573 |
|
Prepaid expenses and other current assets |
|
| 3,216,845 |
|
|
| 2,746,068 |
|
Advance to suppliers, net |
|
| 6,028,433 |
|
|
| 3,086,137 |
|
Total Current Assets |
|
| 51,583,883 |
|
|
| 50,919,660 |
|
|
|
|
|
|
|
|
| |
Restricted cash - non-current |
|
| 1,545,457 |
|
|
| 1,608,498 |
|
Long-term deposits |
|
| 852,842 |
|
|
| 802,306 |
|
Deferred tax assets, net |
|
| 158,329 |
|
|
| 158,329 |
|
Property, plant, and equipment, net |
|
| 24,674,730 |
|
|
| 24,998,096 |
|
Goodwill |
|
| 499,282 |
|
|
| 499,282 |
|
Operating lease right of use assets |
|
| 1,033,412 |
|
|
| 1,259,395 |
|
Total Assets |
| $ | 80,347,935 |
|
| $ | 80,245,566 |
|
|
|
|
|
|
|
|
| |
LIABILITIES AND EQUITY |
|
|
| |||||
Current Liabilities: |
|
|
|
|
|
|
|
|
Credit facilities |
| $ | 3,570,237 |
|
| $ | - |
|
Accounts payable |
|
| 4,394,732 |
|
|
| 6,340,237 |
|
Accrued expenses |
|
| 3,654,895 |
|
|
| 4,175,843 |
|
Income tax payable - current |
|
| 952,108 |
|
|
| 1,647,199 |
|
Other payables |
|
| 2,368,807 |
|
|
| 2,234,870 |
|
Deferred revenue |
|
| 1,123,163 |
|
|
| 10,200 |
|
Operating lease liabilities - current |
|
| 343,868 |
|
|
| 370,802 |
|
Total Current Liabilities |
|
| 16,407,810 |
|
|
| 14,779,151 |
|
|
|
|
|
|
|
|
| |
Operating lease liabilities - non-current |
|
| 481,575 |
|
|
| 618,302 |
|
Income tax payable - non-current |
|
| - |
|
|
| 417,450 |
|
Total Liabilities |
|
| 16,889,385 |
|
|
| 15,814,903 |
|
|
|
|
|
|
|
|
| |
Equity |
|
|
|
|
|
|
|
|
Preferred stock, |
| $ | - |
|
| $ | - |
|
Common stock, |
|
| 12,534 |
|
|
| 12,534 |
|
Additional paid-in capital |
|
| 24,860,117 |
|
|
| 23,917,094 |
|
Treasury stock, 239,478 shares |
|
| (1,169,046 | ) |
|
| (1,169,046 | ) |
Statutory reserve |
|
| 413,821 |
|
|
| 413,821 |
|
Retained earnings |
|
| 39,784,826 |
|
|
| 41,704,238 |
|
Accumulated other comprehensive loss |
|
| (475,823 | ) |
|
| (492,319 | ) |
Total Jerash Holdings (US), Inc. Stockholders' Equity |
|
| 63,426,429 |
|
|
| 64,386,322 |
|
|
|
|
|
|
|
|
| |
Noncontrolling interest |
|
| 32,121 |
|
|
| 44,341 |
|
Total Equity |
|
| 63,458,550 |
|
|
| 64,430,663 |
|
|
|
|
|
|
|
|
| |
Total Liabilities and Equity |
| $ | 80,347,935 |
|
| $ | 80,245,566 |
|
JERASH HOLDINGS (US), INC.,AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Six Months Ended |
| ||||||
| 2024 |
|
| 2023 |
| |||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
| ||
Net (loss) income |
| $ | (702,148 | ) |
| $ | 864,059 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
| 1,209,053 |
|
|
| 1,224,322 |
|
Stock-based compensation expenses |
|
| 943,023 |
|
|
| 484,250 |
|
Credit Loss (recovery) |
|
| 16,768 |
|
|
| (66,980 | ) |
Amortization of operating lease right-of-use assets |
|
| 300,559 |
|
|
| 416,090 |
|
|
|
|
|
|
|
|
| |
Changes in operating assets: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
| (392,484 | ) |
|
| (2,894,162 | ) |
Bills receivable |
|
| - |
|
|
| 87,573 |
|
Inventories |
|
| 7,034,774 |
|
|
| 13,942,970 |
|
Prepaid expenses and other current assets |
|
| (470,777 | ) |
|
| 814,878 |
|
Advance to suppliers |
|
| (2,942,296 | ) |
|
| (1,910,244 | ) |
Changes in operating liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
| (1,945,505 | ) |
|
| (1,530,458 | ) |
Accrued expenses |
|
| (520,948 | ) |
|
| (251,048 | ) |
Other payables |
|
| 133,937 |
|
|
| (265,119 | ) |
Deferred revenue |
|
| 1,112,963 |
|
|
| (696,006 | ) |
Operating lease liabilities |
|
| (238,237 | ) |
|
| (336,984 | ) |
Income tax payable |
|
| (1,112,062 | ) |
|
| (1,704,261 | ) |
Net cash provided by operating activities |
|
| 2,426,620 |
|
|
| 8,178,880 |
|
|
|
|
|
|
|
|
| |
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Purchases of property, plant, and equipment |
|
| (348,238 | ) |
|
| (635,878 | ) |
Payments for construction of properties |
|
| (270,599 | ) |
|
| (2,575,669 | ) |
Payment for long-term deposits |
|
| (317,386 | ) |
|
| (247,610 | ) |
Net cash used in investing activities |
|
| (936,223 | ) |
|
| (3,459,157 | ) |
|
|
|
|
|
|
|
| |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Dividend payments |
|
| (1,229,484 | ) |
|
| (1,229,484 | ) |
Investment of noncontrolling interest |
|
| - |
|
|
| 31,365 |
|
Repayment from short-term loan |
|
| (5,566,040 | ) |
|
| (3,118,339 | ) |
Proceeds from short-term loan |
|
| 9,136,277 |
|
|
| 3,118,339 |
|
Net cash provided by (used in) financing activities |
|
| 2,340,753 |
|
|
| (1,198,119 | ) |
|
|
|
|
|
|
|
| |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND RESTRICTED CASH |
|
| 16,018 |
|
|
| (123,491 | ) |
|
|
|
|
|
|
|
| |
NET INCREASE IN CASH AND RESTRICTED CASH |
|
| 3,847,168 |
|
|
| 3,398,113 |
|
|
|
|
|
|
|
|
| |
CASH, AND RESTRICTED CASH, BEGINNING OF THE PERIOD |
|
| 14,036,867 |
|
|
| 19,411,603 |
|
|
|
|
|
|
|
|
| |
CASH, AND RESTRICTED CASH, END OF THE PERIOD |
| $ | 17,884,035 |
|
| $ | 22,809,716 |
|
|
|
|
|
|
|
|
| |
CASH, AND RESTRICTED CASH, END OF THE PERIOD |
| $ | 17,884,035 |
|
| $ | 22,809,716 |
|
LESS: NON-CURRENT RESTRICTED CASH |
|
| 1,545,457 |
|
|
| 1,608,074 |
|
CASH, END OF THE PERIOD |
| $ | 16,338,578 |
|
| $ | 21,201,642 |
|
|
|
|
|
|
|
|
| |
Supplemental disclosure information: |
|
|
|
|
|
|
|
|
Cash paid for interest |
| $ | 983,352 |
|
| $ | 748,185 |
|
Income tax paid |
| $ | 1,329,150 |
|
| $ | 2,371,705 |
|
|
|
|
|
|
|
|
| |
Non-cash investing and financing activities |
|
|
|
|
|
|
|
|
Equipment obtained by utilizing long-term deposit |
| $ | 262,017 |
|
| $ | 358,620 |
|
Operating lease right of use assets obtained in exchange for operating lease obligations |
| $ | 67,512 |
|
| $ | 177,068 |
|
SOURCE: Jerash Holdings (US), Inc.
View the original press release on accesswire.com
FAQ
What was Jerash Holdings (JRSH) revenue growth in Q2 2025?
What is JRSH's revenue guidance for fiscal 2025?
What was Jerash Holdings' (JRSH) Q2 2025 earnings per share?
What is JRSH's current dividend payment?
