Retractable Technologies, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenues of $33.0 million, a decrease of 24.2% from $43.6 million in 2023. The company experienced a loss from operations of $21.1 million, compared to a loss of $11.5 million in the previous year. This downturn was primarily attributed to a 59.1% drop in international sales, largely due to reduced demand for vaccination-related products as government contracts from the COVID-19 pandemic wound down. Domestic sales also fell by 15.1%, driven by a decrease in average selling prices and unit sales.
The company faced substantial challenges due to newly imposed tariffs on imported syringes and needles from China, which reached 100% in September 2024 and were set to increase by an additional 20% in early 2025. These tariffs resulted in approximately $1.6 million in expenses from September to December 2024 and an additional $951,000 from January to March 2025. In response, Retractable Technologies is shifting a larger portion of its manufacturing to domestic facilities, which has led to increased operational costs, including an estimated $3.8 million annual increase in compensation and benefits due to hiring additional personnel.
Operationally, the company has made strides to enhance its domestic manufacturing capabilities, including adapting equipment to produce 0.5 mL syringes, which are expected to be commercially available in the second half of 2025. As of March 10, 2025, Retractable Technologies employed 227 individuals, with 221 being full-time employees. The company has also reported that 83.9% of its products were sourced from Chinese manufacturers in 2024, highlighting its reliance on international supply chains amidst ongoing tariff challenges.
Looking ahead, Retractable Technologies anticipates continued pressure on its financial performance due to the lingering effects of excess inventory held by domestic customers from previous vaccination efforts, which is expected to suppress demand in the near term. The company is also navigating uncertainties related to international sales and the potential impact of future government contracts. Despite these challenges, Retractable Technologies remains committed to increasing its domestic production capacity and reducing reliance on imports, aiming to stabilize its operations and improve profitability in the coming years.
About RETRACTABLE TECHNOLOGIES INC
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