AXIL Brands Reports Decline in Revenue and Net Income for Q2 FY 2024

AXIL Brands, Inc., formerly known as Reviv3 Procare Company, reported its financial results for the second quarter of fiscal year 2024, revealing a decline in both revenue and net income compared to the same period last year. For the three months ended November 30, 2024, the company generated net sales of $7.73 million, a decrease of 8.2% from $8.42 million in the prior year. The net income for the quarter was $633,706, down from $1.02 million, reflecting a 37.8% decline. For the six-month period, revenue totaled $13.58 million, compared to $14.53 million in the same period last year, while net income decreased to $523,901 from $1.17 million.

The company's financial position showed significant changes as of November 30, 2024, with total assets increasing to $13.71 million from $10.97 million at the end of the previous fiscal year. This growth was primarily driven by an increase in cash and accounts receivable, which rose to $5.21 million and $1.44 million, respectively. However, total liabilities also increased to $4.89 million from $3.28 million, largely due to higher accounts payable and customer deposits. The company’s stockholders' equity improved to $8.82 million, up from $7.70 million, indicating a strengthening balance sheet.

Strategically, AXIL Brands has undergone a rebranding and corporate restructuring, including a name change effective February 14, 2024, and a successful uplisting to the NYSE American stock exchange. The company continues to focus on its core business of manufacturing and marketing high-tech hearing and audio enhancement products, alongside professional quality hair and skin care products. The company has also made efforts to expand its geographic reach, with products sold across the United States, Canada, Europe, and Asia.

Operationally, AXIL Brands reported an increase in its customer base, with the number of shares outstanding rising to 6.47 million from 5.91 million. The company has also seen a shift in its product mix, with a focus on enhancing product adoption rates in its hearing protection and audio enhancement lines. Despite the challenges in revenue generation, the company has maintained a steady engagement with its existing customer base, as indicated by the relatively stable inventory levels and cash flow from operations, which increased to $1.90 million from $1.25 million year-over-year.

Looking ahead, AXIL Brands has expressed cautious optimism regarding its future performance, acknowledging the impact of market conditions and ongoing economic uncertainties. The company plans to continue its strategic initiatives aimed at enhancing product offerings and expanding market presence. However, management has also highlighted potential risks, including inflationary pressures, supply chain disruptions, and geopolitical factors that could affect operations and financial results. The company remains committed to navigating these challenges while focusing on long-term growth and profitability.