Retail Leader iPower Announces Fourth Quarter
iPower Inc. (Nasdaq: IPW) (“iPower” or the “Company”), a leading online hydroponic equipment supplier and retailer in United States, today announced financial results for its fourth quarter and fiscal year ended June 30, 2021.
Results for the fourth quarter of fiscal 2021 compared to the quarter of the previous fiscal year
- Total turnover increased slightly to reach $ 14.7 million.
- Gross profit was $ 6.5 million compared to $ 6.6 million. As a percentage of sales, the gross margin was 44.4% versus 44.7%.
- The net loss was ($ 1.9) million Where (0.08) $ per share, compared to the net result of $ 1.2 million Where $ 0.06 per share.
- Non-GAAP net income (a non-GAAP financial measure defined below) was $0.6 million or $ 0.02 per share, compared to $ 1.2 million Where $ 0.06 per share.
Results for fiscal year 2021 compared to fiscal year 2020
- Total turnover increased by 35% to reach $ 54.1 million compared to $ 39.9 million.
- Gross margin increased by 51% for $ 22.8 million compared to $ 15.1 million. As a percentage of revenue, gross margin increased 430 basis points to 42.2% from 37.9%.
- The net loss was ($ 0.8) million Where (0.04) $ per share, compared to the net result of $ 2.0 million Where $ 0.10 per share.
- Non-GAAP net income increased by 47% to reach $ 2.9 million Where $ 0.14 per share, compared to $ 2.0 million Where $ 0.10 per share.
“Fiscal 2021 has been a strong year for iPower, evidenced by strong revenue growth of over 35% with significant gross margin expansion due to a growing mix of in-house product sales,” said Laurent Tan, CEO of iPower. “The growing demand for our in-house products, which accounted for 72% of sales in fiscal 2021, is a testament to our superior expertise in product research, design and merchandising. Sales of our proprietary products increased by almost 80% in fiscal 2021. We introduced hundreds of new proprietary SKUs during the same period, the majority of which were introduced in the second half of our exercise. We believe we have the right products with the right features to meet the needs of our customers.
“During our fiscal fourth quarter, we used the growth capital raised through our IPO to make significant investments and lay the foundation for continued growth in the years to come. This included increased publicity on new products launched in the second half of 2021, the expansion of our fulfillment infrastructure and several new programs with our co-engineering and supply chain logistics partners. “
Chief Financial Officer iPower Kevin Vassily added, “As we look into fiscal 2022, we expect a robust and continued demand environment. Historically, the organic growth of our revenues has been between 25% and 35%, excluding the extraordinary fiscal year 2020 which benefited from the COVID-19 stay-at-home mandates. The growth of the hydroponics industry as a whole appears to be moderating, however, our unique e-commerce model has allowed us to consistently outperform the industry. Based on our numerous proprietary SKU introductions over the past six months, we expect to continue to overtake the industry going forward with organic revenue growth of at least 25% in fiscal 2022.
“From a profitability standpoint, the cost environment has been more volatile with increasing costs of containers and product inputs. While we plan to offset some of these costs, we nonetheless believe it is prudent to avoid forecasting exact margin targets until the global supply chain becomes more stable. That said, we do anticipate a significant number of new product launches internally, including our own nutrient brand, which we hope will support margins during this volatile time. We remain in the early stages of capitalizing on our unique approach to hydroponics e-commerce sales and look forward to another year of strong execution to come. “
Fourth Quarter 2021 Financial Results
Total revenue for the fourth fiscal quarter of 2021 increased slightly to reach $ 14.73 million compared to $ 14.66 million for the same period of fiscal 2020. The Company benefited from increased e-commerce demand during the fourth quarter of fiscal 2020 due to mandatory stay-at-home orders due to COVID-19, and these benefits continued into 2021.
The gross margin for the fourth fiscal quarter of 2021 decreased slightly to stand at $ 6.5 million compared to $ 6.6 million. As a percentage of sales, the gross margin was 44.4% versus 44.7%.
Total operating expenses for the fourth quarter of the year were $ 6.3 million compared to $ 4.8 million for the same period of fiscal 2020. The increase is mainly attributable to higher merchant fees related to the channel program mix, increased advertising and increased spending with co-marketing partners. -engineering.
The net loss for the fourth fiscal quarter of 2021 was ($ 1.9) million or $ (0.08) per share, compared to the net result of $ 1.2 million Where $ 0.06 per share for the same period of fiscal 2020.
Non-GAAP net income in the fiscal fourth quarter was $0.6 million or $ 0.02 per share, compared to $ 1.2 million Where $ 0.06 per share. The decrease is due to the higher fees mentioned above and the increase in expenses.
Cash and cash equivalents were $ 6.7 million To June 30, 2021, compared to $ 1.0 million To June 30, 2020. The increase was attributed to proceeds from the Company’s initial public offering earlier in the year.
The Company will hold a conference call today at 4:30 p.m. EST discuss the results of its fourth quarter and the year ended June 30, 2021.
IPower management will organize the conference call, followed by a question and answer period.
Dated: September 27, 2021
Time: 4:30 p.m. Eastern Time
Freephone number: (833) 882-8474
International phone number: (409) 981-0009
Conference number: 3283489
Please call the conference phone number 5-10 minutes before the start time. An operator will register your name and organization.
The conference call will be webcast live and available for replay here and on the Company’s investor relations website at www.meetipower.com.
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