Despite achieving a robust 87.2% gross margin, the company reported a negative operating margin of 3.7% due to excessive SG&A spending.
| Sales/Revenue | 54.3M | 74.93M | 68.2M |
| Revenue Growth % | - | 9.87% | - |
| Cost of Goods Sold | 8.3M | 14.11M | 12.74M |
| COGS % of Revenue | - | 18.83% | 18.68% |
| Gross Profit | 45.99M | 60.82M | 55.46M |
| Gross Margin % | 84.7% | 81.17% | 81.32% |
| Gross Profit Growth % | - | 9.67% | - |
| Operating Expenses | 45.41M | 49.84M | 43.23M |
| OpEx % of Revenue | - | 66.52% | 63.38% |
| Selling, General & Admin | 45.41M | 40.43M | 34.73M |
| SG&A % of Revenue | - | 53.96% | 50.93% |
| Research & Development | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - |
| Other Operating Expenses | 0 | 9.41M | 8.5M |
| Operating Income | 580.45K | 10.98M | 12.23M |
| Operating Margin % | 1.07% | 14.65% | 17.93% |
| Operating Income Growth % | - | -10.23% | - |
| EBITDA | 2.13M | 19.16M | 20.42M |
| EBITDA Margin % | 3.92% | 25.57% | 29.95% |
| EBITDA Growth % | - | -6.16% | - |
| D&A (Non-Cash Add-back) | 1.55M | 8.18M | 8.19M |
| EBIT | 580.45K | 11.29M | 12.88M |
| Net Interest Income | -386.21K | -675.47K | -736.6K |
| Interest Income | 0 | 191.86K | 88.44K |
| Interest Expense | 386.21K | 867.34K | 825.04K |
| Other Income/Expense | 371.13K | -560.8K | -170.67K |
| Pretax Income | 951.58K | 10.42M | 12.06M |
| Pretax Margin % | 1.75% | 13.9% | 17.68% |
| Income Tax | 390.64K | 1.52M | 1.8M |
| Effective Tax Rate % | 41.05% | 14.61% | 14.96% |
| Net Income | 847.93K | 8.9M | 10.26M |
| Net Margin % | 1.56% | 11.87% | 15.04% |
| Net Income Growth % | - | -13.25% | - |
| Net Income (Continuing) | 560.94K | 8.9M | 10.26M |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
| EPS (Diluted) | - | 0.42 | 0.52 |
| EPS Growth % | - | -19.23% | - |
| EPS (Basic) | - | 0.42 | 0.52 |
| Diluted Shares Outstanding | 21M | 21M | 19.75M |
| Basic Shares Outstanding | 21M | 21M | 19.75M |
| Dividend Payout Ratio | - | 82.36% | 78.01% |
High Fixed Cost Exposure
According to the latest quarterly filings, Pitanium Limited reported revenue of $18.2 million, reflecting a marginal 1.4% growth rate, which suggests that the company's top-line expansion has stalled significantly compared to the prior year's performance levels observed in the historical data provided.
The lack of meaningful revenue growth indicates that the company's six prime Hong Kong locations may be reaching a saturation point in terms of foot traffic. Investors should monitor whether this stagnation is a result of broader consumer weakness in the region or a failure of the proprietary brand strategy to capture new market share.
As reported in recent financial statements, Pitanium Limited achieved an impressive gross margin of 87.2%, representing a notable improvement from the 79.7% recorded in the prior year, despite the company's inability to translate this high-margin profile into positive operating income during the current period.
The expansion in gross margin suggests that the company has successfully optimized its product mix or pricing power for its proprietary formulations. However, the inability to maintain profitability at the operating level implies that the cost of maintaining high-street retail presence is currently outpacing the benefits of these premium margins.
Based on the provided income statement data, SG&A expenses have surged to $16.5 million, effectively consuming the entirety of the gross profit and resulting in a negative operating margin of 3.7% for the most recent quarter, highlighting a significant lack of operational expense discipline.
The sharp increase in SG&A relative to revenue suggests that the company's fixed cost structure, likely driven by high-rent retail leases in Hong Kong, is becoming unsustainable. This cost profile warrants further investigation into whether management can rationalize these expenditures without compromising the brand's premium positioning.
Data from the latest income statement indicates that Pitanium Limited has transitioned from a profitable entity to one generating a net loss of $351.6K, which suggests that the company's current business model is highly sensitive to even minor fluctuations in operating expenses and retail foot traffic.
Short-term observers may focus on the fact that the company's operating leverage has turned negative, indicating that the business is currently unable to scale its revenue to cover its fixed overhead. This trend suggests that the company's reliance on a small number of physical locations creates a binary risk profile that could lead to further margin compression if retail conditions deteriorate.
Quick answers to the most common questions about buying PTNM stock.
For fiscal year 2024, Pitanium Limited (PTNM) reported total revenue of $74.9M. This represents a 9.9% increase compared to $68.2M in 2023.
Pitanium Limited (PTNM) is profitable, generating $8.9M in net income for the fiscal year ending 2024 with a net profit margin of 11.9%.
Pitanium Limited (PTNM) reported an operating income of $11.0M, resulting in an operating profit margin of 14.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Pitanium Limited (PTNM) generated $60.8M in gross profit for the year, representing a gross profit margin of 81.2%. This demonstrates the company's core pricing power and production efficiency.