ifabric Q1 Sales Rise

ifabric Q1 net earnings after tax attributable to shareholders fell to 88,458 Canadian dollars (CD) about $64,000 at today’s exchange rates) on higher revenue of 7,080,440 CD (about $5,100,000), compared to earnings of 550,596 CD (about $397,000) on sales of 6,754,624 CD (about $4,866,000) in the same period last year.    

“Whilst we did see a significant increase in costs during the quarter,” explained CEO, “this was mainly due to ongoing regulatory costs and, in particular, costs related to the current leaching study for Protx2,” a new fabric technology, “and to build additional revenue streams for the company.”

He added, “we anticipate continued momentum for the balance of 2025, with the latter part of the year delivering exciting new product segments, which are currently in production.”

“In regard to tariffs, as of the current date, the U.S. has adjusted tariffs on Chinese imports to 30%, a 10% increase for the company, whose products are mainly manufactured in China. This new rate will be in effect for 90 days. The company is working with suppliers and customers to share these additional costs in the short term, though I believe that U.S. consumers will ultimately absorb them in the longer term. In Q1 2025, U.S. sales accounted for 23% of total revenue, a ratio not expected to increase due to new Canadian programs launching later in the year. As a result, the tariff increase is not anticipated to significantly affect 2025 earnings, but the risk of further tariff hikes remains and could impact future U.S. revenues and margins,” concluded Karon.

The Canadian public company is based in Markham, Ontario and has two principal divisions, Intelligent Fabric and Intimate Apparel (which does business under names that include Coconut Grove and the licensed Maidenform brand.

In the three months ended March 31, the company explained “revenues for the Intelligent Fabrics Division were 5,824,451 CD [about $4,196,000] in Q1 2025, representing an increase of 1,158,162 CD or 25%, from 4,666,289 CD in Q1 2024. These revenue gains were as a result of increased apparel sales in Canada and the U.S. from new and existing programs.”

“Revenues for the Intimate Apparel Division decreased to 1,250,739 CD [about $901,000] in Q1 2025 from 2,088,335 CD (about $1,504,000) in Q1 2024, representing a decrease of 837,596CD or 40%. A new and major program for this division commenced shipping in Q1 2024. However, by comparison, there were no such new programs for this segment in Q1 2025.”

Company-wide “gross profit margins decreased by 5% to 39% in Q1 2025 compared 44% in 2024, primarily due to product mix, with a higher proportion of lower margin products being shipped in the current quarter.”

“Selling, general and administrative costs increased by 279,704CD (13%) to 2,400,918 CD [about $1,731,000] in Q1 2025 compared to 2,121,214 CD in 2024, as a result of increased regulatory costs and, in particular the cost of the ongoing leaching study for Protx2, as well as personnel, advertising and travel costs incurred to support future business initiatives.”