iPower Q1 Revenue Jumps 16% YoY To $17.4M, In-House Ventilation Line Strongest Category

Hydroponic equipment supplier and retailer iPower Inc. IPW announced its financial results for the fiscal first quarter ended Sept.30, reporting a record first-quarter revenue of $17.4 million, up by 16% year-over-year.

The Duarte, California-based company attributed the increase to greater in-house product sales and increased sales of ventilation and nutrient products.

“From a product perspective, our in-house ventilation line was our strongest category during the quarter,” Lawrence Tan, CEO of iPower said. “This was a much smaller category for us prior to the pandemic, and its growth is a reflection of our superior product design and merchandising capability, as well as the work we put in to effectively manage our supply partner network.”

Q1 2022 Financial Highlights

• Gross profit increased 31% year-over-year to $7.3 million compared to $5.6 million in the same quarter of last year.
• As a percentage of revenue, gross margin increased 490 basis points to 42.1% compared to 37.2% in the first quarter of 2021.
• Total operating expenses in the fiscal first quarter were $6 million compared to $4.5 million for the same period last year.
• Net income increased 17% year-over-year to $0.89 million or $0.03 per diluted share, compared to net income of $0.76 million or $0.04 per diluted share for the same period in fiscal 2021.
• Cash and cash equivalents were $1.2 million as of September 30, 2021, compared to $6.7 million as of June 30, 2021.

“We have started to see lower shipping costs in fiscal Q2 as congestion in the California ports has begun to ease, however, the supply chain more broadly remains volatile, particularly around input costs and COVID-19 disruptions that continue to impact our partners overseas,” Tan continued. “Our focus is nevertheless unchanged. We will continue to bring new in-house SKUs to market and plan to continue working with our suppliers to navigate this unique supply chain environment as we deliver on our various growth objectives in fiscal 2022.”

More recent news from iPower:

iPower Ramps Up Warehouse Capacity With California Facility

IPW Price Action

iPower’s shares traded 4.89% higher at 3.22 per share at the time of writing on Friday.

Photo: Courtesy of laura s on Unsplash