Armlogi's first quarter revenue increased by 3%, but net income decreased, with rising expenses.

From GlobeNewswire: 2024-11-15 08:30:00

Armlogi Holding Corp. reported a 3.0% increase in total revenue to $42.5 million for the first quarter ended September 30, 2024, with transportation services revenue down by 4.2% and warehousing services revenue up by 23.8%. The company also saw a 92% decrease in revenue from other services.

Costs of sales for Armlogi increased by 28.0% to $46.1 million during the same period, mainly due to higher freight expenses and increased lease and labor costs. Gross profit margin decreased to (8.5)% from 12.7% in 2023, impacted by higher UPS surcharges and lower customer order volume.

General and administrative expenses for Armlogi rose by 92% to $3.7 million, driven by increased office, repairs, maintenance, and professional fees. Net income for the first quarter of 2024 was a loss of $4.6 million compared to a net income of $2.8 million in 2023, a $7.4 million decrease.

Armlogi announced partnerships with Temu marketplace and Massimo Group, expanding its warehousing and logistics services for e-commerce sellers and vehicle assembly and distribution. The company also leased a new 60,000 sq. ft. warehouse in City of Industry, CA, to support trucking operations and partnership with Massimo Group.

Armlogi doubled its trucking department capacity in July, extending services to clients like Amazon and investing in staffing, training, and equipment to meet rising demand. The company also participated in the Low Carbon Fuel Standard program, using electric forklifts to reduce greenhouse gas emissions in its California operations.

Armlogi’s warehouse at the Port of Savannah became fully operational in August, handling over 800 container shipments since June. Despite challenges in the first quarter, CEO Aidy Chou remains focused on strategic growth initiatives and infrastructure enhancements. The company aims to navigate current challenges by focusing on operational excellence and strategic growth.



Read more at GlobeNewswire:: Armlogi Reports Financial Results for the First Quarter