On July 1, 2024, Fly-E Group Inc (FLYE, Financial) released its 8-K filing announcing the financial results for the fiscal year ended March 31, 2024. Fly-E Group Inc is an electric vehicle company engaged in designing, installing, and selling smart electric motorcycles, electric bikes, electric scooters, and related accessories under the brand Fly E-Bike. The company also provides connectivity solutions and value-added services to its customers.
Performance Overview
Fly-E Group Inc reported a robust financial performance for fiscal year 2024, with net revenues and gross profit surging by 47.9% and 58.1%, respectively. Despite inflationary pressures leading to higher labor and raw material costs, the company managed to achieve significant growth in income from operations and net income, which rose by 41.0% and 37.5%, respectively. EBITDA also saw a notable increase of 43.2%, reaching $3.5 million.
Financial Achievements
Net revenues for fiscal year 2024 were $32.2 million, up from $21.8 million in fiscal year 2023. This increase was driven by a 2.0% rise in the average sale price of EVs and a significant increase in sales volume by 7,389 units. Retail sales revenue increased by 40.0% to $26.4 million, while wholesale revenue nearly doubled to $5.8 million.
Income Statement Highlights
Gross profit for the year was $13.1 million, with a gross margin of 40.7%, up from 38.1% in the previous year. Total operating expenses rose by 64.7% to $9.8 million, primarily due to increased payroll, rent, and development expenses. Net income for the year was $1.9 million, translating to basic and diluted earnings per share of $0.09, up from $0.06 in fiscal year 2023.
Balance Sheet and Cash Flow
As of March 31, 2024, Fly-E Group Inc had cash reserves of $1.4 million, up from $0.4 million the previous year. Net cash provided by operating activities was $4.3 million, while net cash used in investing activities was $3.2 million. The company also reported net cash used in financing activities of $0.05 million.
| Metric | FY 2024 | FY 2023 | Change |
|---|---|---|---|
| Net Revenues | $32.2 million | $21.8 million | +47.9% |
| Gross Profit | $13.1 million | $8.3 million | +58.1% |
| Net Income | $1.9 million | $1.4 million | +37.5% |
| EBITDA | $3.5 million | $2.4 million | +43.2% |
Commentary
"We are thrilled to present our robust inaugural financial results for fiscal year 2024 following our IPO in June 2024. Our net revenues and gross profit surged by an impressive 47.9% and 58.1%, respectively, for fiscal year 2024. This growth has been accompanied by an improvement in our gross profit margin from 38.1% to 40.7%." - Mr. Zhou (Andy) Ou, Chairman and Chief Executive Officer of Fly-E Group Inc.
Analysis
Fly-E Group Inc's strong financial performance in fiscal year 2024 highlights the company's effective management and strategic initiatives. The significant increase in net revenues and gross profit, coupled with improved gross margins, underscores the company's ability to navigate inflationary challenges and enhance profitability. The rise in operating expenses reflects the company's investment in expanding its business, which is crucial for sustaining long-term growth in the competitive electric vehicle market.
Overall, Fly-E Group Inc's fiscal year 2024 results demonstrate its potential for continued growth and market expansion, making it an attractive prospect for value investors and stakeholders in the electric vehicle industry.
Explore the complete 8-K earnings release (here) from Fly-E Group Inc for further details.
