Arizona Tribune - Maison Solutions Reports First Quarter 2026 Financial Results

Management Commentary

John Xu, Chief Executive Officer of Maison Solutions commented: "M&A continues to remain a core lever for growth. Our acquisition of Lee Lee highlighted the transformative impact of this strategy, as evidenced by our strong growth delivered last fiscal year. We plan to remain opportunistic on this front, with a particular focus on the Midwest and Southwest regions, which hold a steadily growing Asian and ethnic minority population that remain underserved. These markets present an attractive opportunity to establish a meaningful presence given the absence of clear industry leaders. Outside of supermarket acquisitions, we view technology as a long-term enabler of operational efficiency. Emerging technologies like AI and blockchain hold significant potential to optimize supermarket operations, and we are actively evaluating inorganic opportunities and strategies in this space."

"On the supply chain front, building direct sourcing relationships across Southeast Asia region remains another core strategy. This model is critical for creating a lean and scalable supply chain while unlocking opportunities in private label development, brand partnerships, and margin expansion - benefits we can also pass along to our customers in the form of savings. As an early step, we recently entered into a distribution agreement with Guizhou Moutai Chiew Import and Export Co., Ltd. to bring one of China's leading luxury liquor brands to our California stores. This marks the beginning of a broader initiative to expand our Asian sourcing network and introduce a wider range of popular regional products across our supermarkets. In parallel, we see M&A as a potential lever to accelerate these capabilities."

"At this stage of our organic growth strategy, we remain committed to strengthen the Lee Lee operations and performance, building on the proven success and financial contributions of the past year to drive sustained margin improvements. Together, these strategic priorities position us to strengthen our capabilities and ultimately better serve our communities and drive sustainable growth for the long-term."

First Quarter 2026 Financial Results

Total net revenues for the first quarter were $27.2 million compared to $28.2 million in the same period last year. The decrease was primarily due to decreased sales from California-based supermarkets, partially offset by increased sales of Lee Lee stores.

Net revenues from perishable goods for the first quarter was $14.1 million compared to $14.4 million last fiscal year. Net revenues from non-perishable goods for the first quarter was $13.0 million compared to $13.7 million last fiscal year.

Total cost of revenues for the first quarter was $20.6 million compared to $20.0 million last fiscal year. The increase was primarily from Lee Lee stores, partially offset by decreased cost of revenues from its California-based supermarkets.

Gross profit for the first quarter was $6.6 million, while gross margin was 24.2%. Gross profit for the same period last year was $8.1 million, while gross margin was 28.9%. The decrease was primarily due to inflation increasing cost of goods sold.

EBITDA for the first quarter was $(0.46) million compared to $1.69 million in the same period last year.

Net loss attributable to Maison Solutions for the first quarter was approximately $(1.5) million, compared to a net income of approximately $0.7 million in the same period last year.

For more information regarding Maison Solution's financial results, including financial tables, please see our Form 10-Q for the first quarter ended July 31, 2025, to be filed with the U.S. Securities and Exchange Commission (the "SEC") on September 22, 2025. The Company's SEC filings can be found on the SEC's website at https://www.sec.gov/ or the Company's investor relations site at https://investors.maisonsolutionsinc.com/.

About Maison Solutions Inc.

Maison Solutions Inc. is a U.S.-based specialty grocery retailer offering traditional Asian food and merchandise, particularly to members of Asian-American communities. The Company is committed to providing Asian fresh produce, meat, seafood, and other daily necessities in a manner that caters to traditional Asian-American family values and cultural norms, while also accounting for the new and faster-paced lifestyle of younger generations and the diverse makeup of the communities in which the Company operates. Since its formation in 2019, the Company has acquired equity interests in four traditional Asian supermarkets in the Los Angeles, California area, operating under the brand name HK Good Fortune, and three supermarkets in the Phoenix and Tucson, Arizona metro areas, operating under the brand name Lee Lee International Supermarket. To learn more about Maison Solutions, please visit the Company's website at www.maisonsolutionsinc.com. Follow us on LinkedIn and X.

Non-GAAP Financial Measures

As required by the rules of the Securities and Exchange Commission ("SEC"), we provide reconciliations of EBITDA, a non-GAAP financial measure, contained in this press release to the most directly comparable measure under GAAP, which reconciliations are set forth in the table below.

Maison Solutions Inc. uses a variety of operational and financial metrics, including non-GAAP financial measures such as EBITDA to enable it to analyze its performance and financial condition. EBITDA excludes items that may not be reflective of, or are unrelated to, the Company's core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying business. Because EBITDA is a non-GAAP financial measure, other companies may calculate EBITDA differently, and therefore our measures may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA should only be used as a supplemental measure of our operating and financial performance.

Cautionary Note Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC, copies of which are available on the SEC's website at www.sec.gov. Maison Solutions undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after the date of this release, except as required by law.

Investor Relations Contact:

Gateway Group, Inc.
+1-949-574-3860
[email protected]

SOURCE: Maison Solutions, Inc

View the original press release on ACCESS Newswire

A.Clark--AT