The company is experiencing severe top-line deterioration with a 45.99% year-over-year revenue decline and thin gross margins of 16.39% that suggest limited pricing power.
| Metric | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 |
|---|
| Sales/Revenue | 25.1M | 46.47M | 64.86M | 57.1M | 50.03M | 46.1M | 50.37M | 22.54M |
| Revenue Growth % | -45.99% | -28.35% | 13.58% | 14.12% | 8.54% | -8.48% | 123.49% | - |
| Cost of Goods Sold | 20.98M | 44.72M | 58.63M | 51.46M | 42.49M | 36.42M | 42.24M | 19.16M |
| COGS % of Revenue | 83.61% | 96.23% | 90.4% | 90.13% | 84.93% | 79% | 83.85% | 84.99% |
| Gross Profit | 4.11M | 1.75M | 6.23M | 5.64M | 7.54M | 9.68M | 8.13M | 3.38M |
| Gross Margin % | 16.39% | 3.77% | 9.6% | 9.87% | 15.07% | 21% | 16.15% | 15.01% |
| Gross Profit Growth % | 134.93% | -71.87% | 10.44% | -25.21% | -22.12% | 19.03% | 140.44% | - |
| Operating Expenses | 4.68M | 4.36M | 4.13M | 3.25M | 2.73M | 3.5M | 2.16M | 2.25M |
| OpEx % of Revenue | 18.64% | 9.39% | 6.36% | 5.69% | 5.45% | 7.6% | 4.29% | 9.99% |
| Selling, General & Admin | 3.32M | 3.79M | 2.9M | 3.25M | 2.73M | 3.5M | 2.16M | 2.25M |
| SG&A % of Revenue | 13.22% | 8.16% | 4.47% | 5.69% | 5.45% | 7.6% | 4.29% | 9.99% |
| Research & Development | 1.36M | 568.47K | 1.22M | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | 5.42% | 1.22% | 1.89% | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -563.77K | -2.61M | 2.1M | 2.39M | 4.81M | 6.18M | 5.97M | 1.13M |
| Operating Margin % | -2.25% | -5.62% | 3.24% | 4.18% | 9.62% | 13.4% | 11.86% | 5.02% |
| Operating Income Growth % | 78.4% | -224.17% | -11.98% | -50.36% | -22.13% | 3.47% | 428.2% | - |
| EBITDA | 673.46K | -1.47M | 3.33M | 3.59M | 5.98M | 7.37M | 7.23M | 2.37M |
| EBITDA Margin % | 2.68% | -3.16% | 5.13% | 6.29% | 11.95% | 15.98% | 14.35% | 10.53% |
| EBITDA Growth % | 145.91% | -144.1% | -7.32% | -39.97% | -18.84% | 1.95% | 204.55% | - |
| D&A (Non-Cash Add-back) | 1.24M | 1.14M | 1.22M | 1.2M | 1.17M | 1.19M | 1.25M | 1.24M |
| EBIT | -357.36K | -2.42M | 2.52M | 2.95M | 6.05M | 7.17M | 6.36M | 2.14M |
| Net Interest Income | -639.51K | 99.19K | 24.86K | -57.67K | -242.88K | -223.66K | -216.19K | -282.84K |
| Interest Income | 0 | 99.19K | 24.86K | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 639.51K | 0 | 0 | 57.67K | 242.88K | 223.66K | 216.19K | 282.84K |
| Other Income/Expense | -1.57M | -5.29M | -541.44K | 975.23K | 994.21K | 763.38K | 174.6K | 728.92K |
| Pretax Income | -2.14M | -7.9M | 1.56M | 3.36M | 5.81M | 6.94M | 6.15M | 1.86M |
| Pretax Margin % | -8.52% | -17.01% | 2.41% | 5.89% | 11.6% | 15.06% | 12.2% | 8.25% |
| Income Tax | -619.98K | 219.17K | 194.3K | 255.13K | 864.91K | 1.03M | 943.36K | 321.46K |
| Effective Tax Rate % | 29.01% | -2.77% | 12.45% | 7.59% | 14.9% | 14.89% | 15.35% | 17.29% |
| Net Income | -1.44M | -7.78M | 1.08M | 3.15M | 5.06M | 5.33M | 5.17M | 1.41M |
| Net Margin % | -5.75% | -16.74% | 1.66% | 5.52% | 10.12% | 11.57% | 10.26% | 6.28% |
| Net Income Growth % | 81.46% | -822.64% | -65.85% | -37.74% | -5.04% | 3.15% | 265.4% | - |
| Net Income (Continuing) | -1.52M | -8.12M | 1.37M | 3.11M | 4.94M | 5.91M | 5.2M | 1.54M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.35M | 1.56M | 1.91M | 1.81M | 2.74M | 2.74M | 2.4M | 2.41M |
| EPS (Diluted) | -0.20 | -1.08 | 0.15 | 0.45 | 0.72 | 0.76 | 0.74 | 0.20 |
| EPS Growth % | 81.48% | -820% | -66.67% | -37.5% | -5.26% | 2.7% | 270% | - |
| EPS (Basic) | -0.20 | -1.08 | 0.15 | 0.45 | 0.72 | 0.76 | 0.74 | 0.20 |
| Diluted Shares Outstanding | 7.23M | 7.23M | 7.23M | 6.82M | 7M | 7M | 7M | 7M |
| Basic Shares Outstanding | 7.23M | 7.23M | 7.23M | 6.82M | 7M | 7M | 7M | 7M |
| Dividend Payout Ratio | - | - | - | - | - | - | 14.2% | - |
Severe Revenue Contraction Risk
As reported in recent financial disclosures, BGM experienced a significant 45.99% year-over-year decline in top-line growth, signaling a potential loss of market share or fundamental disruption within its core pharmaceutical and agricultural product segments that warrants immediate investor attention regarding the firm's long-term revenue durability.
The sharp revenue decline suggests that the company's reliance on localized Chinese healthcare procurement and livestock cycles has become a major liability. This contraction may indicate that the firm is struggling to maintain volume in its oxytetracycline and TCMD segments amidst intensifying regional competition.
Based on the company's reported figures, gross margins have compressed to 16.39%, a level that appears notably thin for a specialty pharmaceutical entity and suggests the firm may be functioning more as a commodity processor than a high-value drug developer with significant pricing power.
This margin profile implies that BGM lacks the competitive moat necessary to pass on rising raw material costs, particularly for licorice root, to its customers. Investors should monitor whether this compression is a permanent structural shift or a temporary result of volatility in the generic API space.
According to the latest income statement data, the company's operating margin of -2.25% indicates that current revenue levels are insufficient to cover fixed administrative and selling expenses, suggesting a lack of operational scale that may hinder the firm's ability to achieve sustainable profitability in the near term.
The inability to generate positive operating income despite a diverse product portfolio points to inefficiencies in the cost structure. This negative leverage suggests that management may need to significantly rationalize expenses or pivot toward higher-margin offerings to stabilize the bottom line.
Evidence from recent filings suggests that the rebranding to BGM Group Ltd may be an attempt to mask underlying operational distress, as the firm continues to struggle with a disjointed product mix that spans from pharmaceutical APIs to low-value agricultural by-products like sausage casings.
Short-sellers might focus on the lack of clear strategic focus and the potential for further impairment of biological assets and inventories. The company's reliance on circular production models appears to be a defensive measure rather than a growth engine, which may not be enough to offset the ongoing revenue decline.
Quick answers to the most common questions about buying BGM stock.
For fiscal year 2024, BGM Group Ltd. (BGM) reported total revenue of $25.1M. This represents a 11.4% increase compared to $22.5M in 2017.
BGM Group Ltd. (BGM) reported a net loss of $1.4M for the fiscal year ending 2024.
BGM Group Ltd. (BGM) reported an operating income of $-0.6M, resulting in an operating profit margin of -2.2%. This margin reflects the operational efficiency of the business before interest and taxes.
BGM Group Ltd. (BGM) generated $4.1M in gross profit for the year, representing a gross profit margin of 16.4%. This demonstrates the company's core pricing power and production efficiency.