Ispire Releases Fiscal Year 2024 Results: Net Loss Increases To $14.8 Million, And Has Submitted Its First PMTA Application in Four Years

Ispire releases fiscal year 2024 results: net loss increases to $14.8 million, and has submitted its first PMTA application in four years

Ispire Technology Inc. announced its fiscal 2024 results, reporting revenue growth of 31.4% year-on-year to $151.9 million, gross profit growth of 43.3% to $29.8 million, but net losses increased to $14.8 million. The company's CEO said it intends to focus its cannabis e-cigarette hardware business on high-quality interstate operator customers and has submitted its first PMTA application in four years to return to the U.S. market.

[2Firsts News] According to PR. Newswire on September 26, Ispire Technology Inc. (NASDAQ: ISPR) announced its fiscal 2024 results ending June 30, 2024, and will submit its annual report "Form 10-K" to the U.S. Securities and Exchange Commission (SEC) on September 26.

 

The financial results for fiscal year 2024 show:

 

Revenue increased by 31.4% year-on-year to $151.9 million, mainly due to: increased sales of products in the United States, with sales increasing by $21.5 million from $41.6 million on June 30, 2023 to $63.1 million on June 30, 2024; sales of e-cigarette products in Europe increased by $6.5 million from $58.8 million on June 30, 2023 to $65.3 million on June 30, 2024; sales of e-cigarette products in other markets increased by $5.7 million from $0.3 million on June 30, 2023 to $6 million on June 30, 2024, mainly due to an increase in sales to South Africa to $5.4 million.

Gross profit increased by 43.3% to $29.8 million from $20.8 million in fiscal year 2023, and gross profit margin increased from 18.0% in 2023 to 19.6%. The increase was primarily due to a change in product mix, with the company focusing on higher-margin products, improved economies of scale from increased sales volumes, and benefits from production at the company's facility in Malaysia.

Total operating expenses increased 73.0% to $43.7 million from $25.3 million in fiscal 2023. The increase was primarily attributable to expenses to support the expansion of the business in areas such as salaries and contract wages, sales and marketing, professional fees, and increased stock-based compensation.

Net loss was $14.8 million, compared to a net loss of $6 million in fiscal 2023.

As of June 30, 2024, Ispire had $35.1 million in cash and cash equivalents and $16.6 million in working capital.

 

Michael Wang, the company's CEO, said,

 

"2024 is a foundational year for Ispire, characterized by record revenue and significant margin expansion, while strategically positioning for faster growth in our global nicotine business and intentionally focusing our cannabis e-cigarette hardware on high-quality multi-state operator (MSO) customers."

"We have expanded market share and strengthened global operating infrastructure through long-term strategic partnerships with industry leaders such as Acreage Holdings, Hidden Hills Club, Dank Pack and the BRKFST brand, which is a collaboration with international singer Burna Boy."

 

"In addition, Ispire has established a 31,000 square foot modern production facility in Malaysia to take advantage of the international nicotine market while reducing costs and improving profitability."

 

"This spring, we successfully completed a $12.3 million public offering, strengthening our financial position and laying the foundation for future international expansion."

 

"We have also appointed a senior leadership team, Jim McCormick as Chief Financial Officer, John Patterson as Chief Financial Officer, and John McCormick as Chief Financial Officer. Patterson as Senior Vice President of International Nicotine and Dennis Lider as Senior Vice President of Cannabis E-cigarette Hardware Sales.

 

"Ispire recently submitted its first PMTA application in four years for a disposable electronic cigarette (ENDS) product with four flavors, marking our attempt to re-enter the U.S. e-cigarette market. While the company is driving innovation for growth, it is also committed to improving margins and taking steps to limit underage use of e-cigarette products and adhering to the concept of responsible marketing."