iFabric: Profit And Record Revenue In Q2

Net earnings at iFabric, in the quarter ended March 31, jumped, in Canadian dollars, to CD$469,419 (about $343,241 at current exchange rates) compared to an after tax loss of CD$671,680 (about $491,268) in the same period last year. Revenue in the same quarter surged to CD$6,642,563 (about $4,858,391) from CD$3,477,287 in the same fiscal second quarter in 2022.

In the period, revenues at the firm’s Intelligent Fabrics Division rose 101% to CD$4,413,977 (about $3,229,817) from CD$2,190,631 in 2022, “attributable to new swimwear programs for a major retail customer, which commenced shipping in the current quarter.” Revenues at the Intimate Apparel Division, owner of the Coconut Grove brand, increased 76% to CD$2,223,336 (about $1,627,357) from CD$1,260,153 in Q2 2022. The increase “was primarily attributable to increased sales in Canada.”

The company also noted that “gross profit as a percentage of revenue increased to 40% in Q2 2023, from 36% in Q2 2022, as a result of lower shipping costs from Asia and the repricing of a number of products.” It added that “selling, general and administrative costs increased by CD$578,655 or 40% to CD$2,027,891 in Q2 2023 compared to CD$1,449,236 in Q2 2022. Increased personnel costs, commissions, royalties, rent, advertising, travel and freight costs incurred to support revenue growth current and future, were the main drivers of this increase.”

CEO Hylton Karon declared, “we are proud to announce record revenue for Q2 2023. Both divisions have delivered programs built on the growth strategy of innovative design, technology, and licensing. The launch of our ROOTS branded swimwear program (in the Intelligent Fabric division) was a tremendous success for the company. The 2023/2024 program has already been renewed at 150% of the inaugural delivery. This program brought with it the addition of a further major national retail chain, which we see as potentially becoming one of our largest Canadian customers, in this and many other categories as we continue to build out our business with them.”

“We also continue to make excellent progress in executing our strategic growth plan and diversifying our business. We are continuing to grow across Canada and the U.S. at a great pace. Underpinning our progress and strong results are our best-in-class technologies, our strong internal design team and our commitment to meeting the evolving performance and product needs of our customers and partners. In addition to the expanding growth in our core businesses, we have made important progress on the regulatory front with a new, breakthrough registration for PROTX2 allowing for public health claims on non-apparel products. While an important milestone for the company and a potential driver of new business opportunities, we intend to build upon this initial registration to achieve similar public health claims for use of PROTX2 in apparel. Given our growing momentum in sales, new products, new customers and new registrations, management is excited and confident in the upward trajectory of its businesses for the remainder of the year and beyond,” he concluded. —NM