FGI INDUSTRIES ANNOUNCES 2ND QUARTER 2022 RESULTS.

EAST HANOVER, N.J: FGI Industries Ltd. (Nasdaq: FGI) ("FGI" or the "Company"), a leading global supplier of kitchen and bath products, today announced results for the second quarter of 2022.

SECOND QUARTER 2022 HIGHLIGHTS

(As compared to the Second Quarter of 2021)

Total Revenues of $47.8 million, +12.5% y/y

Operating Income of $1.7 million, (47.9%) y/y

Net Income of $1.2 million, (53.3%) y/y

Adjusted Operating Income of $1.8 million, (47.2%) y/y

Adjusted Net Income of $1.2 million, (52.6%) y/y

Reaffirmed full-year 2022 financial guidance

Total revenue increased by 13% on a year-over-year basis in the second quarter of 2022, driven primarily by continued strength in the Sanitaryware and Other categories (including shower systems and custom kitchen cabinetry), while partially offset by a decline in Bath Furniture. Second quarter revenue trends remained strong in Canada, while the United States and Europe increased modestly.

The Company reported operating income of $1.7 million in the second quarter of 2022, a decline of $1.6 million versus the prior-year period, primarily driven by supply chain disruptions, investments in organic growth initiatives, and incremental public company costs, partially offset by strong revenue growth. Excluding non-recurring IPO-related compensation expense of $0.02 million, adjusted operating income was $1.8 million during the second quarter of 2022, as compared to $3.3 million for the prior-year period.

For the three months ended June 30, 2022, the Company reported GAAP net income of $1.2 million, or $0.10 per diluted share, versus net income of $2.5 million, or $0.36 per diluted share, in the second quarter of 2021. Excluding non-recurring items and the related tax impact, the Company reported second quarter 2022 adjusted net income of $1.2 million, or $0.10 per diluted share.

MANAGEMENT COMMENTARY

"Demand trends remained strong across our key product categories during the second quarter, with total revenue increasing by 13% on a year-over-year basis, driven by strong demand in both the wholesale and retail channels for sanitaryware and continued growth in our newer product categories," stated David Bruce, President and Chief Executive Officer of FGI. "As we had expected coming into the year, we have seen some moderation in the broader R&R market growth owing to the ongoing macroeconomic headwinds, with our Bath Furniture segment seeing the biggest impact within our product portfolio; however, overall demand...