Jewett-cameron Trading ((JCTC)) has held its Q2 earnings call. Read on for the main highlights of the call.
The recent earnings call for Jewett-Cameron Trading Company painted a mixed picture of the company’s current financial health. While there were notable achievements such as increased revenue and strategic expansions, challenges like decreased gross margins and a net loss for the quarter were also highlighted. The company has made strides in diversifying its supply chain and expanding its metal fence category, but the impact of tariffs and other uncertainties continue to pose challenges.
Increased Revenue
Jewett-Cameron reported a revenue increase for Q2 2025, reaching $9.1 million compared to $8.2 million in Q2 2024. This growth was primarily driven by the metal fencing products and the Greenwood operating segment, showcasing the company’s strategic focus on these areas.
Expansion of Metal Fence Category
The company successfully expanded its metal fence category by placing Lifetime Steel Post displayers in over 330 Home Depot and Lowe’s stores. This represents a 65% increase from three months prior, indicating strong market penetration and consumer interest.
Supply Chain Diversification
Jewett-Cameron has made significant progress in diversifying its supply chain, reducing dependence on a single supplier. This strategic move positions the company better against tariff changes and enhances its operational resilience.
Sustainable Products Growth
The transition to the MyEcoWorld brand for sustainable bags has shown robust growth, driven by online sales and new grocery channel adoption. This aligns with the growing consumer demand for sustainable products.
Greenwood Segment Performance
Sales at the Greenwood segment increased by 31% for the current quarter, reaching $1.1 million compared to $0.9 million in Q2 2024. This growth underscores the segment’s strong performance and contribution to the company’s overall revenue.
Inventory Management
The company successfully reduced its inventory balances by 23%, bringing them down to $14.9 million as of February 28, 2025. This reduction reflects effective inventory management strategies.
Decreased Gross Margins
Gross margins for Q2 2025 fell to 20.1% from 25.1% in Q2 2024. This decline was attributed to a shift in sales mix and the high costs associated with domestically produced display units.
Pet Products Sales Decline
The demand for pet products was weak, with sales declining in the current quarter compared to Q2 2024. This area remains a challenge for the company.
Wood Fence Products Revenue Fall
Revenue from wood fence products experienced a slight decline due to material constraints, highlighting ongoing supply chain challenges.
Net Loss for the Quarter
Jewett-Cameron reported a net loss of $0.6 million for Q2 2025, compared to a net income of $0.5 million in Q2 2024. This net loss reflects the financial pressures the company is currently facing.
Forward-Looking Guidance
Looking ahead, Jewett-Cameron is focused on strategic initiatives such as expanding its Lifetime Steel Post displayers and MyEcoWorld product line. The company is also working on supply chain improvements to mitigate tariff impacts. Additionally, Jewett-Cameron is seeking to monetize its seed facility property to enhance shareholder value.
In summary, the earnings call for Jewett-Cameron Trading Company highlighted both achievements and challenges. While there are positive developments in revenue growth and strategic expansions, the company faces hurdles such as decreased gross margins and a net loss. The forward-looking guidance suggests a focus on strategic initiatives and operational improvements to navigate these challenges.