Maison Solutions Inc (MSS) Q1 2024 Earnings Report

Maison Solutions Inc (MSS) delivered a notably stronger top-line performance in QQ1 2024 (calendar year basis), with revenue of $29.65 million, up 115.6% year over year and 75.2% quarter over quarter. The company posted a gross profit of $8.27 million and a gross margin of 27.88%, supported by an EBITDA of $1.70 million and positive operating income of $1.63 million, translating to an operating margin of 5.51%. Net income was $0.70 million, with earnings per share (EPS) of $0.0402. Free cash flow for the period amounted to $3.48 million, underscoring deleveraging-capable cash generation even as working capital and liquidity metrics remain constrained.\n\nFrom a balance-sheet perspective, MSS carries a substantial debt load: total debt of $57.06 million and net debt of $56.47 million, against total assets of $82.08 million and total stockholders’ equity of $11.20 million. The current ratio stands at 0.45 and the quick ratio at 0.19, indicating tighter near-term liquidity despite positive operating cash flow of $3.59 million. Cash at period-end was $0.59 million. The company used financing activities of about $2.89 million to repay debt, contributing to a modest net cash increase of roughly $0.58 million for the period. These dynamics point to a valuation where investors are rewarded for growth and profitability on the one hand, and exposed to leverage and liquidity risk on the other.\n\nOverall investment thrust for MSS rests on sustaining revenue momentum and margin discipline while addressing leverage and liquidity headwinds. The stock’s valuation metrics—indicative of a smaller, growth-oriented grocery retailer—show modest price-to-sales (~0.63) and a price-to-earnings (~6.66) framework, paired with an elevated enterprise value multiple (44.09x) that reflects the company’s small scale and growth optionality. Management commentary (not provided in the data) would be key to validating forward guidance and strategic levers such as store expansion, e-commerce penetration, and cost optimization.”,