AUS
NZ
UK
CA
USA
IND
Maison Solutions Inc. (NASDAQ:MSS), a U.S.-based specialty grocery retailer known for its diverse selection of traditional Asian and international foods, has announced impressive financial results for the first quarter ending July 31, 2024. This period marks a significant milestone as it is the first full quarter since the acquisition of Lee Lee Oriental Supermart, Inc.
John Xu, President, Chairman, and CEO of Maison Solutions, expressed optimism about the company’s performance, highlighting the immediate positive impact of integrating Lee Lee into the Maison Solutions portfolio. "We are pleased with our financial results for Q1 2025. The inclusion of Lee Lee has led to a notable improvement in our gross margins, rising from 22.6% in the same quarter last year to 27.9%. This progress brings us closer to our goal of achieving a 30% gross margin, a target we are actively working toward," Xu stated.
The company has taken proactive steps to enhance Lee Lee’s operations, focusing on optimizing its supply chain and leveraging synergies across its stores. Notably, Maison Solutions has begun to streamline Lee Lee’s supply chain by utilizing its central warehouse in California. This strategy not only minimizes costs but also enhances economies of scale, contributing to improved margins.
Total net revenues for the first quarter surged by 115.6%, reaching $29.6 million compared to $13.8 million during the same period last fiscal year. This remarkable increase is primarily attributed to the inclusion of Lee Lee’s revenues, which amounted to $18.2 million following the acquisition in April 2024.
Breaking down the revenue streams, net revenues from perishable goods rose by 96.7% to $15.2 million, while non-perishable goods saw a staggering increase of 139.8%, reaching $14.5 million.
The total cost of revenues for the first quarter was $21.4 million, an increase from $10.6 million in the previous year. This rise is mainly due to the costs associated with Lee Lee, which added $12.3 million to the company's total expenses. However, this was partially offset by a $1.6 million decrease in costs from Maison Solutions’ four California-based supermarkets.
Gross profit for the quarter was reported at $8.3 million, with a gross margin of 27.9%, compared to $3.1 million and a margin of 22.6% in the same period last year. The growth in gross profit is largely driven by the successful performance of Lee Lee’s stores, which offer a wide range of authentic international products, enhancing the company’s market presence.
