Greystone Logistics Reports 20% Sales Decline and $1.10 Million Net Loss for Quarter Ended August 31, 2025

Greystone Logistics, Inc. reported a significant decline in financial performance for the three months ended August 31, 2025, with sales totaling $10.73 million, a decrease of 20% from $13.46 million in the same period last year. The company's gross profit also fell sharply to $318,343, representing just 3% of sales, compared to $1.90 million, or 14% of sales, in the prior year. This downturn was primarily attributed to reduced production levels and a decrease in sales from several key customers, which collectively accounted for approximately 63% of total sales. The company recorded a net loss of $1.10 million, or $0.04 per share, compared to a net income of $335,454, or $0.01 per share, in the previous year.

In terms of operational metrics, Greystone's cost of sales increased to 97% of total sales, up from 86% in the prior year, largely due to fixed manufacturing costs remaining constant despite lower production volumes. Selling, general, and administrative expenses decreased to $1.54 million from $1.82 million, primarily due to the absence of bonuses that were paid in the previous year. The company also noted a significant gain from involuntary conversions in the prior year, which did not recur in the current period, further impacting profitability.

Greystone's balance sheet showed total assets of $43.66 million as of August 31, 2025, down from $45.97 million at the end of the previous fiscal period. Current assets decreased to $9.54 million, with cash increasing to $2.34 million from $1.55 million, while accounts receivable and inventory levels remained relatively stable. Total liabilities decreased to $25.01 million, with long-term debt net of current portions at $8.21 million, down from $8.83 million. The company’s equity also declined to $18.65 million from $19.88 million, reflecting the net loss incurred during the quarter.

Looking ahead, Greystone Logistics aims to enhance its market presence by expanding its customer base and increasing product adoption, particularly in industries such as beverage and pharmaceuticals. The company plans to continue its marketing efforts, including participation in trade shows, to promote the environmental benefits of using plastic pallets. However, the company faces challenges, including reliance on a limited number of major customers and the need to secure additional financing to support operations and meet contractual obligations. Greystone's management remains cautious, acknowledging that future results may vary significantly based on market conditions and operational performance.