Jewett-Cameron Q2 Revenue up 16% to $10.5M, Margin Slips to 15.7%
Jewett-Cameron posted Q2 revenue of $10.5M, up 16% y/y on one-time inventory liquidations but warns these gains won't recur, and gross margin fell to 15.7% from 20.1% due to below-cost sales. Cash rose to $547k, inventory dropped to $9.6M, while operating expenses increased to $2.8M and net loss reached $1.2M.
1. Q2 Financial Results
Jewett-Cameron reported Q2 revenue of $10.5 million, up 16% year-over-year, with a gross profit margin of 15.7% versus 20.1% in the prior year. Operating expenses rose to $2.8 million, resulting in a net loss of $1.2 million ($0.35 per share), while cash increased to $547,000 and inventory fell to $9.6 million.
2. One-Time Liquidations Drive Growth
Approximately $2.5 million of second-quarter sales derived from liquidation of pet inventory and excess cedar fencing, which boosted revenue but occurred at or below cost. Management cautions that these liquidation-related sales will not repeat, potentially reducing future top-line growth.
3. Cost Reduction and Asset Sales
The company aims to cut annual operating expenses by $1 million to $3 million through headcount reductions and wage adjustments, with wages down 19% in Q2. Properties in Hillsboro and North Plains remain listed for sale, with updates pending execution of sale agreements.