Pharma-Bio Serv Reports Revenue Increase and Improved Profitability for Quarter Ending January 31, 2025

Pharma-Bio Serv, Inc. reported its financial results for the quarter ending January 31, 2025, revealing total revenues of approximately $2.47 million, a slight increase of $91,146 compared to $2.38 million in the same period last year. The company experienced a notable improvement in gross profit, which rose to $768,109, reflecting a gross profit margin of 31.1%, up from 22.5% in the prior year. This increase in gross profit percentage is attributed primarily to a high-margin project in the European market, despite declines in revenue from Puerto Rico and U.S. consulting services.

The company's operational performance showed a significant reduction in loss from operations, which narrowed to $92,191 from a loss of $438,300 in the previous year. Net income for the quarter was reported at $8,536, a substantial recovery from a net loss of $270,719 in the same quarter of 2024. Basic and diluted earnings per share were negligible at $0.000, compared to a loss of $0.012 per share in the prior year. The improvement in profitability was supported by a decrease in selling, general, and administrative expenses, which fell to $860,300 from $973,909.

In terms of operational metrics, the company reported a total of 22,930,842 shares of common stock outstanding as of March 12, 2025. The customer base remains concentrated, with three customers accounting for 51.4% of total revenues during the quarter, compared to 37.0% in the same period last year. This concentration highlights the company's reliance on a few key clients, which poses a risk to revenue stability. The company continues to operate across multiple regions, including Puerto Rico, the United States, Europe, and Brazil, with plans for further geographic expansion.

Pharma-Bio Serv is currently navigating various market challenges, including economic conditions, regulatory changes, and industry consolidations. The company is actively pursuing opportunities to enhance its business development infrastructure and adapt its strategies to meet evolving market demands. Looking ahead, management remains cautiously optimistic about future profitability and liquidity, contingent on the overall economic landscape and the company's ability to capitalize on service opportunities. The company has also requested an extension of its tax grant from the Puerto Rico Industrial Development Company, which, if approved, would provide continued tax relief for its operations in Puerto Rico.