Reports Q3 revenue $110M, consensus $119.07M. "Although net sales for the third quarter were above those of the prior year period – a particularly strong quarter due to COVID re-openings – results were impacted by customers’ destocking of certain inventory due to supply chain recovery," said Alan Yu, chief executive officer. "Nevertheless, demand remains strong for our eco-friendly products and other offerings. Our eco-friendly products grew 26.7 percent during the quarter. We continue to see solid gross margin improvement into the fourth quarter, further benefited from significantly lower ocean freight rates toward the end of the third quarter and the strong U.S. dollar, which is allowing us to implement some price reductions to proactively pass on savings to our customers. Proceeding into the fourth quarter and fiscal 2023, we have implemented new initiatives to significantly grow online sales, and we are on track with our Green Earth Technology joint venture in Taiwan to start producing bagasse products at the end of 2022, with shipments to begin early in the new year."
Published first on TheFly
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