FGI Industries Ltd. (NASDAQ:FGI) Q4 2022 Earnings Call Transcript

David Bruce: Sure. So we’ve mentioned and when we’ve posted some of our results by category, we’ve really experienced exponential growth in our shower systems business and our kitchen business. And that’s where I think we’ll be originally going back to the beginning of 2022 when we first went IPO, we talked about our BPC strategy. We really anticipated a large growth area there in those higher-margin categories. And we continue to do that and we’re continuing to see that. So — and not only that. I think I’ve talked about — not getting into the weeds of all of our product categories. But we’ve talked about how we’re reengineering the mix of all of our programs, including our cabinetry and the sanitaryware business. So we’re really reengineering the mix in every one of our product categories to continue to grow not only the brands but on the image and — but the quality of the product, the ticket, the margin.

But what we’re seeing, first, we’re seeing the impact of the shower systems business and the kitchen growth. That was part of — that’s part of the margin driver. That’s part of the reason you saw a margin improve but that’s also the drivers that you’re going to see and we expect, going into the balance of this year as well.

Greg Gibas: Okay, understood. I guess the last one for me. I just wanted to see if you can speak to the impact that you’re still seeing from the supply chain disruptions. I’m trying to get a sense of whether they’re changing at all or if they’re kind of the same over the last several quarters.

David Bruce: Yes. I would say now that things have pretty much moderated. There’s always blips on the screen, so to speak, as it comes to supply chain. But as of right now, I would say that we’re almost back to a pre-pandemic level as far as disruptions. So we’re getting — we have a lot more cadence now on our ordering and our deliveries. So yes, that’s no longer on the radar right now as a threat for the year.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to David Bruce for any closing remarks.

David Bruce: Well, thank you for the time and interest today. We appreciate your continued support of FGI. Stay well and we look forward to connecting with you on our next quarterly call.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.