Revenue Performance: CGA's revenue for Q2 2024 was reported at $14.35 million, down from $17.0 million in Q1 2024, and a decrease from $17.81 million in Q2 2023. This downward trend represented a substantial decline amid challenging market conditions in the agricultural inputs industry.
Profitability Analysis: The gross profit margin improved slightly to 24.16%, attributed to better pricing strategies despite lower sales volumes. However, operating losses widened to -$4.79 million, driven by high operating expenses ($8.26 million), particularly in general and administrative (G&A) costs.
Cash Flow Dynamics: The company generated a negative cash flow of -$1.22 million in operating activities, impacted by decreased sales and increased working capital needs, indicative of inventory management issues and receivables tightening.