There are a number of companies that may be a bit under the radar at this point in time but it could well be just the right time for investors to start looking into those companies a bit more closely. One of the companies that may be looked into this morning is Margo Caribe Inc (OTCMKTS:MRGO).
Trading Data
On Thursday, MRGO stock ended flat at $8 with more than 555 shares traded, compared to a volume of 244 shares. The stock moved within a range of $8.00 – 8.00 after opening trading at $8.
About Margo Caribe Inc
The company is best known for its subsidiary unit Margo Outdoor Living Inc, which has managed to emerge as a major player by way of the collaborations it has struck up with some of the major retailers in the industry.
The subsidiary has significant expertise in not only product development, but also logistics at competitive pricing, high-tech automation, and global supplier sourcing. This has helped Margo Caribe in not only growing its revenues but also its profits. One of the segments in which Margo Outdoor Living is a major player in the lawn and garden products category.
Margo Caribe, the parent company is based out of Puerto Rico and this past December Margo Outdoor Living switched its status to a Delaware corporation from a Florida corporation. Now that you have a pretty good idea about Margo Caribe as a company and its operations, it may be a good time for you to consider taking a look at the developments from Thursday.
Margo Caribe, Inc. Announces Second Quarter 2022 Results
Yesterday, the company had come into focus after it announced its financial results for the fourth fiscal quarter as well as the full year, both of which ended on June 30, 2022. In addition to that, the company also announced the financial results for its fully owned subsidiary unit Margo Outdoor Living.
The company announced that it had managed to generate net sales to the tune of $16.7 million for the quarter that ended on June 30, 2022, and that reflected a sequential rise of 22% but a year-on-year drop of 14%. In addition to that, unaudited results also reflected pre-tax income to the tune of $3 million for the quarter.
The net income came in at $2.3 million and that worked out to earning per share of $0.58. The Chief Executive Officer of the company Michael Spencer noted that the drop in sales on a year-on-year basis was primarily due to the fact that a solitary customer had decided to have a short-term transactional program. He added that if that particular customer could be ignored then the year-on-year decline in sales was less than 1%.
However, on the other hand, Specter was also quite candid about some of the difficulties that the company faced at this point in time. He noted that Margo Caribe was suffering with regards to its margins since it had come under significant pressure owing to rising labor costs, high rates of sea freight, and continued rise in the price of diesel. At this point in time, it remains to be seen if the stock can manage to make an upward move over the coming days or not.
Key Quote
“The year-over-year decline in sales can be specifically attributed to a single customer participating in a short-term transactional program, excluding this customer, total sales were down less than 1 percent compared to the prior year. We believe our sales growth to be consistent with industry segment growth levels given the impact of inflation on discretionary sales for our big-box customer base and a natural pull-back from pandemic-fueled e-commerce sales,” said Michael Spector, CEO.
