Margo Caribe, Inc. Announces Fiscal 2021 Results

JACKSONVILLE, Fla., May 9, 2022 /PRNewswire/ -- Margo Caribe, Inc. (OTC SYMBOL: MRGO) (Margo), a market leader in the home and garden segment, today announced fourth quarter and full year operating results of its wholly-owned subsidiary, Margo Outdoor Living, Inc. for the year ended December 31, 2021. 

Sales for the year ended December 31, 2021, totaled $52 million, an increase of $9.0 million, or 21 percent from the prior year 2020.  The Company also reported full year 2021 audited results that included pre-tax income of $7.6 million and net income of $5.9 million or $1.47 per share.    

"Fiscal 2021 was another record year with sales increasing above the $50 million level," said Michael Spector, CEO. "We were pleased to achieve such strong sales growth in 2021 sequential to the extraordinary 98% growth rate posted in fiscal 2020 during the height of the pandemic."  

Mr. Spector added, "During 2021 we dealt with some unique issues that pressured our operating margins, including supply chain disruption, inventory availability and a material increase in freight costs from Asia. Although we believe supply chain issues will eventually normalize over the next twelve to eighteen months, recent trends have caused us to actively undertake initiatives to diversify suppliers, explore lower cost logistic alternatives, and broaden our product offerings."      

• Revenue, net of allowances, increased 21% to $52 million over prior year.
• Fiscal 2021 sales are up 138% over fiscal 2019 pre-Covid sales levels.
• Pre-tax income of $7.6 million, declined 9% from prior year due primarily to higher logistics costs and expansion of warehouse capacity and production facilities.
• Fiscal 2021 pre-tax income has increased 285% from fiscal 2019 levels
• 2021 saw strong cash flow, evidenced by net debt, debt less cash, declining from $8.4 million ended 2020 to $.33 million ended 2021.
• Debt to equity ratio ended 2021 at 95% compared to 209% in the prior year.

Margo Caribe, Inc. through its subsidiary Margo Outdoor Living, Inc. (MOL). has benefited by building key relationships with the largest big-box retailers in its industry segment. Its focus on product development, world-wide supplier sourcing, cost effective logistics and state-of-the-art automation has contributed to its success in growing both top and bottom-line results. MOL offers a wide range of products in the lawn and garden segment.  This includes sales of landscaping pebbles, mulch, glass, pottery and tile products. The Company's customer base is predominately big-box retailers but also sells products directly to consumers through the eCommerce sales channel. 

MOL is a wholly-owned subsidiary of Margo Caribe, Inc., a Puerto Rico entity.  Effective December 22, 2020, MOL converted from a Florida corporation to a Delaware corporation and changed its name from Margo State Line, Inc. to Margo Outdoor Living, Inc.

Media Contact: 
Priscilla Franco
pfranco@margocaribe.com

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SOURCE Margo Caribe, Inc.