Flexible Solutions International Reports Slight Sales Decrease but Increased Gross Profit for Fiscal Year 2024

Flexible Solutions International Inc. reported its financial results for the fiscal year ending December 31, 2024, revealing a slight decrease in total sales to $38.23 million, down from $38.32 million in 2023. The company achieved a gross profit of $13.24 million, an increase from $10.44 million the previous year, primarily due to a decline in raw material costs that aligned with existing customer price reductions. Net income attributable to controlling interest rose to $3.04 million, or $0.24 per share, compared to $2.78 million, or $0.22 per share, in 2023.

The company experienced notable changes in its operational metrics. Accounts receivable increased to $11.70 million from $9.84 million, reflecting a growing customer base, while inventory levels decreased slightly to $10.89 million from $11.13 million. The employee headcount remained stable at 45, with no labor union representation. Flexible Solutions also reported that three major customers accounted for 54% of total sales, indicating a continued reliance on key accounts.

Strategically, the company made significant moves, including the acquisition of an 80% interest in 317 Mendota, a real estate company, which is expected to enhance its manufacturing capabilities. Additionally, Flexible Solutions launched new stock options under its Stock Incentive Plan, granting 1,081,000 options to employees and consultants, which reflects its commitment to incentivizing talent. The company also plans to invest approximately $50,000 in marketing and production for its WATERSAVR® product in fiscal 2025, aiming to boost its market presence.

In terms of geographic expansion, international sales accounted for approximately 24% of total revenues, up from 21% in the previous year. The company continues to face competition from both direct and indirect sources, particularly in its TPA product line, where it competes with Lanxess AG. However, Flexible Solutions believes its competitive advantages, such as biodegradability and cost-effectiveness, will help maintain its market position.

Looking ahead, the company expressed cautious optimism, noting that fluctuations in crude oil prices and economic conditions in the oil and gas sector could impact future performance. Management highlighted the importance of timely product introductions and the potential for new market opportunities as key factors influencing growth. Despite past operating losses, the company remains focused on improving profitability and sustaining its operational momentum in the coming fiscal year.