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MSS Nasdaq· Maison Solutions Inc
Earnings report Q4 2023

MSS Reports 7.6% Increase in Net Revenue for the Six Months Ended October 31, 2023

Segments of revenue

MSS reported net revenues of approximately $27.5 million for the six months ended October 31, 2023, representing a 7.6% increase compared to approximately $25.6 million for the same period in the previous year. The net revenue growth was primarily driven by the inclusion of revenues from the newly acquired subsidiary, Maison Monterey Park supermarket, which contributed $3.8 million to the increase. However, this growth was partially offset by decreased sales at Maison San Gabriel, Maison Monrovia, and Maison El Monte, which collectively accounted for a decrease of $1.9 million in net revenues.

Strengths

MSS demonstrated strength in its financial performance with a 7.6% increase in net revenue. The acquisition of Maison Monterey Park supermarket played a significant role in driving this growth. Management's strategic decision to expand its operations through acquisitions has proven successful, as evidenced by the positive impact on the company's overall revenue. Additionally, the company's ability to navigate increased competition from newly opened Asian supermarkets near Maison San Gabriel showcases its resilience in the face of challenges.

Challenges

Despite the overall growth in net revenue, MSS faced challenges in certain segments. Decreased sales at Maison San Gabriel, Maison Monrovia, and Maison El Monte resulted in a $1.9 million decrease in net revenue for these existing three stores. The company attributed this decline to increased competition from newly opened Asian supermarkets near Maison San Gabriel. Furthermore, a reduction in purchases through the company's online platform also contributed to the decrease in sales.

Noteworthy

The inclusion of revenues from the newly acquired subsidiary, Maison Monterey Park supermarket, significantly contributed to the overall increase in net revenue. This highlights the company's successful integration of acquisitions and its ability to leverage new business opportunities. Additionally, the impact of increased competition from newly opened Asian supermarkets near Maison San Gabriel underscores the need for MSS to continuously adapt and differentiate its offerings to maintain market share.

Summary

MSS reported a 7.6% increase in net revenue for the six months ended October 31, 2023. This growth was primarily driven by the inclusion of revenues from the newly acquired subsidiary, Maison Monterey Park supermarket. However, decreased sales at existing stores and a reduction in online purchases posed challenges to the company's revenue growth. MSS showcased strength in its financial performance and strategic decision-making, while also highlighting the need to address competition and adapt to changing market dynamics.

Source documents

Form 10-Q  filed on Dec 15, 2023
2 pages scanned

Reference data

Company financials Q4 revenue 13.8M
Analyst estimates Q4 EPS missed by NaN%
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