JEWETT CAMERON TRADING CO LTD Q1 FY2025 earnings call

Key Initiatives - Strategic focus on improving visibility in the investment community. - In-aisle displayers for fence products: Over 1,500 new displayers installed in the last six months, with Lifetime Steel Post displayers expanding to over 300 stores. - Product innovation: Launched Adjust-A-Gate Unlimited, a new gate kit with adaptability and anti-sag technology. - Supply chain: Multi-sourcing production to mitigate China tariff impact. - Other product categories: Wood fence availability improving, pet containment working on marketing strategies and new kennel launch, sustainable products diversifying customer reliance, Greenwood normalizing post-pandemic demand. - Asset sale: Seed processing facility listed for $9 million sale, expected to add value to shareholders.

In the first quarter of fiscal 2025, metal fencing products saw a 19% year-over-year increase. Wood fencing products had a 4% year-over-year growth. Pet containment products experienced a 31% decline year-over-year. Compostable products were down due to the absence of a large customer load-in from the prior year. The Greenwood operating segment saw sales of $0.8 million in Q1 2025 compared to $1.1 million in Q1 2024. Fence products collectively represent approximately 79% of Q1 sales.

Forward-Looking Statements - Initiatives to drive profitable sales growth through displayer load-ins and replenishment orders. - Expect margin improvements from new supply chain partners and enhanced pricing strategies. - Goal to right-size operating structure and move towards profitability in fiscal 2025. - Anticipate offsetting softness in pet containment with growth in other segments.

Risks - Forward-looking statements subject to multiple risks and uncertainties. - Supply chain issues, including ocean shipping costs. - Seasonality impacting business. - Softness in the pet containment retail channel. - Dependence on one customer for sustainable products. - Uncertainty in the outcome of asset sale negotiations.

Q: Can you expand on plans for use of capital from the sale of the 11.6-acre seed processing facility?

A: It's too preliminary now, but the capital will be put to good use for the benefit of the Company and shareholders, with strategy being evaluated by the Board.

Q: Can you talk about other retailers besides Home Depot and Lowe's for displayers?

A: We are in conversations with regional and other retailers, focusing on those with space for in-aisle displayers, and the new Adjust-A-Gate Unlimited provides opportunities for more displayers in suitable retailers.

Q: Can you comment on insider ownership of the Company shares?

A: Internal share ownership has shifted dramatically in recent years due to changes in previous owners, with an RSA plan for executives and opportunities for other employees to purchase shares outside blackout periods