Flexible Solutions International Inc. reported a decline in financial performance for the first quarter of 2025, with total sales of $7.47 million, down 19% from $9.22 million in the same period of 2024. The company's gross profit also decreased to $1.95 million from $2.82 million year-over-year. This decline in revenue and profitability was attributed to decreased customer orders for both its energy and water conservation products and biodegradable polymers, which are key segments of its business.
The company's operating loss for the quarter was $69,157, a significant drop from an operating income of $765,831 in the prior year. Net loss attributable to controlling interest was $277,734, compared to a net income of $457,226 in the first quarter of 2024. The decrease in profitability was further impacted by increased tariffs and a reduction in stock options granted, which had previously contributed to higher expenses in 2024. Additionally, interest expenses rose due to increased debt levels, while interest income fell as a result of decreased term deposits.
In terms of operational developments, Flexible Solutions International's customer base saw three primary customers account for 49% of sales in the first quarter of 2025, down from 55% in the previous year. The company also reported a slight increase in cash and term deposits, totaling $11.03 million at the end of March 2025, compared to $8.33 million a year earlier. The company’s total assets increased to $61.69 million from $59.97 million, while total liabilities rose to $19.92 million from $18.60 million, reflecting a strategic decision to utilize short-term lines of credit to support operations.
Looking ahead, the company remains focused on its core product lines, including HEATSAVR® and WATERSAVR®, which are designed to conserve water and energy. Management anticipates that market conditions, including the price of crude oil and potential new tariffs on imported materials, will significantly influence future operating results. The company has expressed confidence in its ability to meet cash flow requirements for the coming year, with working capital reported at $22.80 million as of March 31, 2025. Additionally, a special dividend of $0.10 per share has been declared, payable on May 28, 2025, indicating a commitment to returning value to shareholders despite recent financial challenges.
About FLEXIBLE SOLUTIONS INTERNATIONAL INC
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