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Highlights
- MSS' net revenues surged 125.3% year-over-year to $31.0 million in Q2 FY25.
- Gross profit increased significantly to $8.2 million with an improved gross margin of 26.3%.
- Fiscal year 2025 guidance set at $120 million to $125 million in revenue with positive net income.
Maison Solutions Inc. (NASDAQ:MSS), a U.S.-based specialty grocery retailer offering traditional Asian and international food and merchandise, today reported strong financial results for the second quarter and the first half of fiscal 2025. The company’s impressive growth is primarily driven by its acquisition of Lee Lee, a key player in expanding its market presence and product offerings.
Second Quarter Performance: Strong Growth Across All Segments
For the second quarter of fiscal 2025, Maison Solutions saw a significant increase in total net revenues, which grew by 125.3%, reaching $31.0 million compared to $13.8 million in the same period last fiscal year. This growth was primarily attributed to the revenues from Lee Lee, which was acquired in April 2024. The newly acquired subsidiary contributed both to perishable and non-perishable goods sales, which saw impressive increases.
Net revenues from perishable goods rose by 114.3%, totaling $16.0 million, up from $7.5 million in the prior year. Similarly, non-perishable goods revenue increased by 138.5%, reaching $15.0 million compared to $6.3 million in Q2 FY24.
Despite the strong revenue growth, the cost of revenues for the second quarter increased to $22.9 million, up from $10.6 million in the same period last year. This was mainly driven by Lee Lee’s inclusion, although this was partially offset by decreased costs from Maison Solutions' four California-based supermarkets.
The company’s gross profit for the quarter was $8.2 million, with a gross margin of 26.3%, a notable improvement from the $3.1 million and 22.7% gross margin reported in Q2 FY24. This growth was also attributed to Lee Lee’s strong performance. EBITDA for the quarter reached $0.7 million, up from $0.3 million last year.
However, despite the revenue surge, Maison Solutions reported a net loss of approximately $256,000 for the second quarter, a reversal from the net income of $91,500 in the same period last year. This loss was primarily due to higher operating expenses associated with the recent acquisition.
Six-Month Performance: Continued Strong Growth
For the first six months of fiscal 2025, Maison Solutions continued to experience impressive growth. Total net revenues increased by 120.5%, reaching $60.7 million compared to $27.5 million in the same period last fiscal year. Perishable goods sales rose by 105.4% to $31.2 million, while non-perishable goods saw a 139.1% increase to $29.5 million.
The company’s gross profit for the first half of the fiscal year reached $16.4 million, with a gross margin of 27.1%, up from $6.2 million and 22.6% gross margin in the same period last year. EBITDA for the first six months was $2.4 million, a significant increase from $0.5 million in FY24.
Maison Solutions also reported net income of approximately $445,000 for the first six months, compared to a net loss of $13,500 in the same period last year. This improvement reflects the strong revenue growth and enhanced profitability driven by the Lee Lee acquisition.
Fiscal Year 2025 Guidance
Looking forward, Maison Solutions is reiterating its guidance for fiscal year 2025, forecasting total revenues between $120 million and $125 million, with positive net income.
