Jerash Holdings (US), Inc. (NASDAQ:JRSH) Q4 2024 Earnings Call Transcript June 27, 2024 9:00 AM ET

Company Participants

Roger Pondel - IR
Sam Choi - Chairman and CEO
Eric Tang - Executive Director
Gilbert Lee - CFO

Conference Call Participants

Mike Baker - D.A. Davidson
Mark Argento - Lake Street

Operator

Good morning everyone and welcome to the Jerash Holdings Fiscal 2024 Fourth Quarter and Full Year Financial Results Conference call. At this time, all participants are in a listen-only mode, and we will open for questions following the presentation. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Roger Pondel, Investor Relations at Jerash Holdings. Roger, the floor is yours.

Roger Pondel

Thanks so much, Jenny. Good morning, everyone. Welcome to Jerash Holdings fiscal 2024 fourth quarter and full year conference call. I'm Roger Pondel with PondelWilkinson, Jerash Holdings’ Investor Relations firm. It will be my pleasure momentarily to introduce the company's Chairman and Chief Executive Officer, Sam Choi; his Chief Financial Officer, Gilbert Lee; and Eric Tang, who leads the company's operations in Jordan. Both Sam and Eric are in Jordan.

Before I turn the call over to Sam, I want to remind our listeners that today's call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to numerous conditions, many of which are beyond the company's control, including those set forth in the risk factor section of the company's most recent Form 10-K as filed with the Securities and Exchange Commission, copies of which are available on the SEC's website at www.sec.gov, along with other company filings made with the SEC from time to time. Actual results could differ materially from those forward-looking statements, and Jerash Holdings undertakes no obligation to update any forward-looking statements, of course, except as required by law.

And with that, I will turn the call over to Sam Choi. Sam?

Sam Choi

Thank you, Roger. Since October of last year, the Red Sea crisis, triggered by multiple attacks on cargo ships by Houthi rebels has continued to cause supply chain disruption throughout the Middle East region. Even though an alternative shipping route has been established to receive raw materials, bottleneck and vessel bunching caused delays, impacting production for our global customers and in turn the company's financial performance for the quarter and fiscal 2024. Gross margin, likewise, was down due to the significantly higher ocean freight and transportation costs from Asia to Jordan. Despite the shipping situation, we have identified and are aggressively increasing our source of raw materials from Turkey and Egypt. This is allowing us to bypass the treacherous shipping routes and mitigate related logistic costs.