(Filed Under Financial and General Interest News). Revenue at iFabric jumped 41% in the three months ended June 30, to $3,214,465 Canadian dollars (C$) (about $ 2.4 million at current conversion rates), up from C$2,284,507 during the same three months last year.
However the company reported a net loss for the quarter of C$544,394 (about $408,000), compared to a loss of C$646,819 during the same quarter last year.
iFabric is composed of “three reportable operating segments,” Intimate Apparel, which includes the design and distribution of women’s intimate apparel and accessories (also known as Coconut Grove); Intelligent Fabrics, which includes the development and distribution of products and treatments for application to textiles, plastics, liquids, and hard surfaces as well as finished apparel which integrates one or more such treatments; and the leasing of property.
Over the past nine months, the intimate apparel segment has shrunk while the intelligent fabric segment has grown significantly. In the nine months ended June 30, total revenue from intimate apparel was C$2,458,827 (about $1.8 million) compared to C$4,062,988 (about $3.0 million) in the same period last year. The segment lost C$ 882,440 (about $662,000) before income taxes during the period, compared to a loss of C$1,283,757 before income taxes, in the same period last year.
Meanwhile, the intelligent fabrics division generated total revenue of C$6,632,329 (about $5.0 million) in the first three fiscal quarters, compared to C$3,616,729 in the same nine months last year. The segment made a profit before income taxes of C$348,889 (about $262,000) this year, compared to a loss before income taxes of C$500,934 in the same three quarters last year.
In the latest quarter, revenue in the intimate apparel division fell 78% to C$315,819 from C$1,412,270 in 2019. The company explained the decline was, “primarily attributable to the closure of retail stores as a result of the” pandemic.
Conversely, revenue at the intelligent fabrics division jumped 215% C$2,839,549 compared to C$901,864 in the fiscal third quarter of 2019. “The increase was mainly attributable to initial personal protective equipment sales, increased chemical sales and increases in performance apparel sales to a major retailer in Canada.”
The company stated the increases in the period for the intelligent fabrics divisions were due to the following factors:
- Commencement in shipments of personal protective equipment (PPE) for sale to the U.S. market.
- A rebound in chemical sales in Asia following successful testing of the ability of PROTX2 to deactivate the COVID-19 causing virus.
- The near normalization in the supply of products from China, which resulted in the receipt of delayed shipments of finished performance apparel for a major Canadian retailer.
CEO Hylton Karon added, “our Intelligent Fabrics Division achieved record revenues in the quarter, which in turn allowed the iFabric group as a whole to report a revenue increase of 41% compared to the previous year, despite extremely adverse current retail conditions. Following the recent successful testing of our PROTX2 technology against the COVID-19 causing virus, we are currently experiencing an unprecedented level of inquiries for our textile technologies, finished performance apparel and protective garments. We are also starting to see a modest rebound in Intimate Apparel orders as a result of the reopening of retail stores and we are launching our own performance and protective apparel brand in the fall. Accordingly, I am confident that iFabric has entered into a period of sustainable growth.” — NM
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