BrilliA Announces Six-month Earnings of $0.06 per Share and a 17% Revenue Increase for the Six Months Ended September 30, 2024

Rhea-AI Summary

BrilliA Inc (NYSE American: BRIA) reported financial results for the six months ended September 30, 2024. The company achieved revenue of $27.4 million, marking a 17% increase from $23.5 million in the same period of 2023. Net income remained stable at $1.13 million, or $0.06 per share.

Key performance highlights include:

• 38% increase in North American export sales ($6.5 million)
• 56% decline in European export sales ($3.1 million)
• Gross profit margin improvement to 15.4% from 14.8%
• Operating expenses rose 27% ($0.6 million)

The company's cash position stood at $5.9 million as of September 30, 2024, compared to $6.4 million in March 2024. Management expects continued strong North American sales and anticipates growth in European markets through a new partnership with French luxury brand Maison Lejaby, while their DIANA lingerie brand is expected to contribute to ASEAN market revenue later this year.

Positive

• Revenue increased 17% to $27.4 million
• North American export sales grew 38% to $6.5 million
• Gross profit margin improved to 15.4% from 14.8%
• Net cash used in operating activities decreased to $0.20M from $0.68M

Negative

• European export sales declined 56% to $3.1 million
• Operating expenses increased 27% ($0.6 million)
• Cash position decreased to $5.9M from $6.4M
• Non-current liabilities increased to $1.71M from zero

Insights

Financial Analyst

BrilliA's half-year results present a mixed financial picture with notable strengths and concerns. The $27.4 million revenue representing a 17% growth is impressive, but the flat net income of $1.13 million ($0.06 per share) despite this growth signals efficiency challenges.

The geographic revenue distribution reveals significant market volatility. North American sales surged 38% (adding $6.5 million), while European exports plummeted 56% (losing $3.1 million). This regional disparity creates both opportunity and risk for the business model.

Concerning are the 27% higher operating expenses driven primarily by a 56% increase in employee benefit costs. These escalating expenses effectively neutralized the benefits from both revenue growth and gross margin improvement (from 14.8% to 15.4%).

The balance sheet shows modest deterioration with cash declining from $6.4 million to $5.9 million, while non-current liabilities increased from zero to $1.71 million. This shift toward debt financing requires monitoring, though operating cash burn improved from $0.68 million to $0.20 million.

The Maison Lejaby partnership represents a strategic attempt to recover European market share, though quantifiable impact remains speculative. While topline growth continues, BrilliA must address its cost structure to translate revenue gains into improved profitability.

Retail Industry Specialist

BrilliA's latest results highlight the divergent trajectories in the global intimate apparel market. The 38% North American sales surge suggests strong acceptance of their cross-border sourcing model in this region, likely benefiting from post-pandemic supply chain reconfiguration and retailers seeking reliable manufacturing partners.

Conversely, the 56% European sales decline indicates significant challenges in this historically brand-conscious market. The partnership with French luxury lingerie brand Maison Lejaby represents a strategic pivot, leveraging European brand equity to potentially rebuild regional presence.

The significant 56% increase in employee benefit expenses suggests BrilliA is investing in talent retention amid competitive labor markets for apparel manufacturing expertise. This investment may yield future operational efficiencies but is currently pressuring margins.

The company's expansion of its proprietary DIANA brand into ASEAN markets represents a potential vertical integration strategy, moving beyond service provision into brand ownership. This higher-margin business model could improve profitability if successful, but requires different competencies than their core B2B operations.

BrilliA's positioning remains fundamentally sound given the essential nature of intimate apparel products and continued recovery in retail spending, but the company faces the classic challenge of maintaining service quality while managing costs in a price-sensitive segment.

SINGAPORE, March 21, 2025 (GLOBE NEWSWIRE) -- BrilliA Inc (NYSE American: BRIA) (“BRIA” or “the Company”), a leading one-stop service cross-border solution provider for ladies' intimate apparel brands, today announced that, for the six-month ended September 30, 2024, the Company had revenue of $27,423,693, a 17% improvement compared with revenue of $23,483,537 for the same period in 2023.

The Company reported revenue of $27.4 million, representing a 17% increase compared to $23.5 million in the same period of 2023. Net income for the six months ended September 30, 2024, was $1.13 million, or $0.06 per share, reflecting a negligible change from $1.13 million, or $0.06 per share, in the prior-year period.

Revenue increased by 17%, driven primarily by a 38% rise in export sales to North America, contributing approximately $6.5 million. This was partially offset by a 56% decline in export sales to Europe, amounting to approximately $3.1 million.

The Company’s gross profit margin improved to 15.4% from 14.8% in the prior year period.

Operating expenses increased by approximately 27%, or $0.6 million, primarily due to a 56% rise in employee benefit expenses ($0.56 million) and a 24% increase in other expenses ($0.20 million), which included travel, entertainment, license fees, and taxes.

As a result of the above-mentioned factors, the Company’s net income for the six months ended September 30, 2024, showed a slight increase to $1,132,224, compared with $1,131,819 in the prior-year period. Cash and cash equivalents as at September 30, 2024, were about $5.9 million compared with approximately $6.4 million as at March 31, 2024. Net cash used in operating activities for the six months ended September 30, 2024, was about $0.20 million, compared with about $0.68 million in the same period a year earlier. Total non-current liabilities at September 30, 2024, were about $1.71 million, compared with zero in the corresponding period in 2023.

“We are quite excited by our financial performance in the first six months ended September 30 2024, especially our 38% growth in sales to North America,” said BrilliA chief executive Kendrew Hartanto. “We were also successful in achieving an improvement in our gross profit margin, which, along with our 17% improvement in revenue, contributed to another profitable period for our Company.

“Going forward, we expect North American sales to remain strong, and for our European intimate apparel sales to be boosted by our recently signed cooperation framework with the French luxury lingerie brand, Maison Lejaby.

“We also expect our own DIANA lingerie brand to begin making significant contributions to overall revenue in Indonesia, Singapore, and other ASEAN countries later this year.”

About BrilliA Inc

BrilliA is a one-stop service cross-border solution provider for ladies' intimate apparel brands, managing sales and customer relationships with major clients like Fruit of the Loom, Hanes Brands Inc and H&M, with the expertise in handling sourcing, design, prototyping, supply chain to logistic management as well as quality control of products manufactured by independent third party manufacturing facilities for their customers worldwide.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this press release are “forward-looking statements” as defined under the federal securities laws, including, but not limited to, the Company’s expectations regarding the completion, timing and size of the proposed Offering and statements regarding the use of proceeds from the sale of the Company’s shares in the Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the Offering will be successfully completed. Investors can find many (but not all) of these statements by the use of words such as “believe”, “plan”, “expect”, “intend”, “should”, “seek”, “estimate”, “will”, “aim” and “anticipate”, or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

For further information, please contact:

BrilliA Inc Contact:
220 Orchard Road, Unit 05-01, Midpoint Orchard
Singapore 238852
(+65) 6235 3388
Email: info@brilliaincorporated.com 

Investor Relations Inquiries:
Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, New York 10036
Office: (646) 893-5835
Email: info@skylineccg.com

BRILLIA INC AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2023 AND 2024
			Pro forma				Successor
			Six months ended				Six months ended
		Note	September 30,				September 30,
			2023				2024
			(Unaudited)				(Unaudited)*
				USD			USD
Revenue		16		23,483,537			27,423,693
Cost of materials				(12,718,569	)		(15,090,191	)
Contract manufacturers charges				(7,281,609	)		(8,114,670	)
Gross profit				3,483,359			4,218,832
Other income		17		48,291			54,972
Depreciation of property, plant and equipment				(17,985	)		(22,791	)
Depreciation of right-of-use assets				(86,305	)		(229,348	)
Employee benefit expense		18		(999,461	)		(1,558,517	)
Other expenses		19		(831,715	)		(1,030,375	)
Finance costs		20		(7,048	)		(67,760	)
Net gain/(loss) on impairment of financial assets				(235,775	)		74,004
Profit before income taxes				1,353,361			1,439,017
Income tax expenses		21		(221,542	)		(306,793	)
Profit for the financial period				1,131,819			1,132,224
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
(Loss)/Gain on foreign currency translation				(33,214	)		41,056
Other comprehensive income, net of tax				(33,214	)		41,056
Total comprehensive income for the period				1,098,605			1,173,280
Profit attributable to:
Owners of the parent				1,130,833			1,130,677
Non-controlling interest				986			1,547
				1,131,819			1,132,224
Total comprehensive income attributable to:
Owners of the parent				1,097,652			1,171,692
Non-controlling interest				953			1,588
				1,098,605			1,173,280
Weighted average number of ordinary shares
basic and diluted				28,530,220			28,530,220
Earnings per share attributable to ordinary shareholders
basic and diluted				0.04			0.04
* For period prior to the acquisition, the Company is referred to as the Predecessor. For period after the acquisition, it is referred to as Successor. Please refer to “Note 1 Group Reorganization” for detailed explanation.
The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

 

BRILLIA INC AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF MARCH 31, 2024 AND SEPTEMBER 30, 2024
		Predecessor
		As of		Successor
		March 31,		As of
		2024		September 30,
		(Pro forma		2024
	Note	Unaudited)		(Unaudited)*
ASSETS		USD		USD
Non-current assets
Property, plant and equipment, net	4	98,016		144,635
Right-of-use assets	5	16,651		2,167,443
Deferred offering costs	6	836,752		1,250,176
Total non-current assets		951,419		3,562,254
Current assets
Inventories	7	7,093,579		9,968,764
Trade and other receivables	8	12,204,289		11,112,834
Amounts due from related parties	9	460,163		559,622
Income tax recoverable		59,314		62,115
Cash and cash equivalents	10	6,383,103		5,898,466
Total current assets		26,200,448		27,601,801
Total assets		27,151,867		31,164,055
LIABILITIES AND EQUITY
Non-current liabilities
Lease liabilities	11	—		1,708,501
		—		1,708,501
Current liabilities
Trade and other payables	12	16,649,567		17,052,169
Amount due to a director	13	—		2,739
Amount due to a shareholder	14	56,895		51,678
Lease liabilities	11	—		423,490
Income tax payable		2,304,921		2,611,714
Total current liabilities		19,011,383		20,141,790
Total liabilities		19,011,383		21,850,291
Capital and reserves
Share capital	15	500		6,660,500
Translation reserve		—		41,015
Merger reserve		717,901		(5,942,099)
Retained earning		7,414,815		8,545,492
		8,133,216		9,304,908
Non-controlling interests		7,268		8,856
Total shareholders’ equity		8,140,484		9,313,764
Total liabilities and equity		27,151,867		31,164,055
The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

FAQ

What was BrilliA's (BRIA) revenue growth in North America for H1 2024?

BrilliA's export sales to North America increased by 38%, contributing approximately $6.5 million to revenue in H1 2024.

How much did BRIA's European sales decline in the six months ended September 2024?

BrilliA's European export sales declined by 56%, amounting to approximately $3.1 million.

What was BrilliA's (BRIA) earnings per share for H1 2024?

BrilliA reported earnings of $0.06 per share for the six months ended September 30, 2024.

How did BrilliA's gross profit margin change in H1 2024 compared to 2023?

BrilliA's gross profit margin improved to 15.4% from 14.8% in the prior year period.

What strategic partnerships has BRIA announced for European market growth?

BrilliA has signed a cooperation framework with French luxury lingerie brand Maison Lejaby to boost European intimate apparel sales.