PLANO,
Texas, April 6, 2023 /PRNewswire/ -- Dogness
(International) Corporation ("Dogness" or the "Company") (NASDAQ:
DOGZ), a developer and manufacturer of a comprehensive line of
Dogness-branded, OEM and private label pet products, today
announced its unaudited financial results for the six months ended
December 31, 2022.
The Company noted it was not immune to macroeconomic headwinds
facing the broader industry, which resulted in revenue declines in
all geographic markets, with the exception of Australia. While total revenues decreased by
approximately $7.8 million, or 42.8%,
to approximately $10.4 million for
the six months ended December 31,
2022 from approximately $18.2
million for same period last year, 47.3% of revenue in the
most recent period was from intelligent pet products, with 45.4%
from traditional pet products. The ongoing mix shift to higher
value, higher average selling price, or ASP, and higher margin
products reflects the Company's ongoing investment in R&D and
successful commercialization of its expanding line of intelligent
pet products, ranging from smart feeders and GPS trackers to home
monitoring robots and interactive treaters.
Continued Focus on Intelligent Pet Products
Dogness continues to collaborate with large retail chains in the
US and Canada to distribute its
intelligent pet products under its own brand, rather than just
serving as an OEM supplier. Furthermore, it continues to expand its
sales on online shopping platforms, such as Amazon and Chewy, to
reach more potential customers. Dogness anticipates that these
efforts, coupled with the global economic recovery and the release
of its new generation of intelligent pet products, will result in
an increase in revenue in the near future, with its new generation
of intelligent pet products continuing to be the primary source of
revenue for its international sales.
As a result of the decline in revenue, the Company's gross
profit decreased by approximately $4.4
million or 61.6%, to approximately $2.7 million for the six months ended
December 31, 2022 from approximately
$7.1 million for the same period of
2021. Overall gross profit margin was 26.1%, a decrease of 12.8
percentage points, as compared to 38.9% for the six months ended
December 31, 2021.
Net loss was approximately $3.0
million for the six months ended December 31, 2022, as compared to net income of
approximately $1.1 million for the
six months ended December 31, 2021.
The net loss was the result of decreased sales and gross profit, as
well as increased operating expenses, primarily selling and
research and development.
Silong Chen, Chairman and Chief
Executive Officer of Dogness, commented, "We expect our financial
results will better reflect our successful mix shift to intelligent
products in the second half of this year. The underlying long-term
fundamentals of our business remain strong, and we have several
high volume customer orders in advanced stages that we believe will
meaningfully contribute to our growth as we move into the second
half of the year. We also expect to realize a higher return on
investments we have made in customer support, R&D, and sales as
we move forward. Our team remains focused on cultivating the
extensive growth opportunities in front of us as we capitalize on
the further expansion of our sales, design and development
pipeline."
Established Integrated Sales Platforms
Dogness has built an integrated sales platform across all
channels, with major customers including Petco, PetSmart, Costco
Wholesale Corporation, Xiuhu, Sam's Club, Walmart, Target,
QVC®, Pet Value, Pets at Home, PETZL, Petmate,
Trendspark, Anyi Trading, IKEA, SimplyShe, and online shopping
platforms, such as Amazon, Chewy.com, Boqii Holding Limited,
Target.com, HomeDepot.com, Lowes.com, Wayfair.com, JD, Tmall and
Taobao, as well as live streaming sales platforms hosted by
influencers.
About Dogness
Dogness (International) Corporation was founded in 2003 from the
belief that dogs and cats are important, well-loved family members.
Through its smart products, hygiene products, health and wellness
products, and leash products, Dogness' technology simplifies pet
lifestyles and enhances the relationship between pets and pet
caregivers. The Company ensures industry-leading quality through
its fully integrated vertical supply chain and world-class research
and development capabilities, which has resulted in over 200
patents and patents pending. Dogness products reach families
worldwide through global chain stores and distributors. For more
information, please visit: ir.dogness.com.
Forward Looking Statements
No statement made in this press release should be interpreted as
an offer to purchase or sell any security. Such an offer can only
be made in accordance with the Securities Act of 1933, as amended,
and applicable state securities laws. Certain statements in this
press release concerning our future growth prospects are
forward-looking statements regarding our future business
expectations intended to qualify for the "safe harbor" under the
Private Securities Litigation Reform Act of 1995, which involve a
number of risks and uncertainties that could cause actual results
to differ materially from those in such forward-looking statements.
The risks and uncertainties relating to these statements include,
but are not limited to, risks and uncertainties regarding lingering
effects of the Covid-19 pandemic on our customers' businesses and
end purchasers' disposable income, our ability to raise capital on
any particular terms, fulfillment of customer orders, fluctuations
in earnings, fluctuations in foreign exchange rates, our ability to
manage growth, our ability to realize revenue from expanded
operation and acquired assets in China and the U.S., our ability to attract and
retain highly skilled professionals, client concentration, industry
segment concentration, reduced demand for technology in our key
focus areas, our ability to successfully complete and integrate
potential acquisitions, and unauthorized use of our intellectual
property and general economic conditions affecting our industry.
Additional risks that could affect our future operating results are
more fully described in our United States Securities and Exchange
Commission filings. These filings are available at www.sec.gov.
Dogness may, from time to time, make additional written and oral
forward-looking statements, including statements contained in the
Company's filings with the Securities and Exchange Commission and
our reports to shareholders. In addition, please note that any
forward-looking statements contained herein are based on
assumptions that we believe to be reasonable as of the date of this
press release. The Company does not undertake to update any
forward-looking statements that may be made from time to time by or
on behalf of the Company unless it is required by law.
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SOURCE Dogness International Corporation