Q2 2025 Leatt Corp Earnings Call
Good morning and welcome to the leat corporation, investor conference call to discuss the financial results for the second quarter 2025.
The company issued a press release today, Thursday, August 7th, 2025 at 8:00 am Eastern and filed its Report with the FCC.
The press release is posted on Leah's website at leat dcp.com.
This call is being broadcast live and may be accessed on the company's website. An audio replay of this call will be available for 7 days and may be accessed from North America by calling 1, 844 512 2921 or 4123176671 for international callers. The replay pin number is 1 111, 597
A replay of the webcast will be available, immediately following this call, and we'll continue for 7 days.
Certain statements in this conference call May constitute forward-looking statements actual results could differ materially from those discussed in this. Call Lee at Corporation does not undertake any obligations updates such statements made in this call. Please refer to the complete cautionary. Statement regarding forward-looking statements in today's press release. Dated August, 7th 2020.
25.
The company will make a presentation on the quarter of the results and then open the call to questions. I would now like to turn the call over to Mr. Sean McDonald, CEO of leak, Corporation, good afternoon to you, in Cape Town, Sean.
Good morning.
And thank you.
Very much and profitability.
Capital Global revenues increased by 6.1 million to 16.18 million. It's 61% increase over the second quarter of 2024.
This is our fourth consecutive quarter of growth and third consecutive quarter of double digital since the postco industry surface, causing industrywide, Revenue functions.
Double digit Revenue growth, in all of our major product categories. As we continue to develop Cutting Edge Products to reach a wider, wider community, and invest in a pipeline of innovative products.
Body armor revenues, including upper body on the limit protection and Footwear increased by 48%, home trainers increased by 117% other product cost and accessory sales, including apparel, goals and components, increased by 65%. And next 1 is sales increased by 19% compared to the second quarter of 2024.
Gross profit as a percentage of sales continued to improve, increasing from 39% in the second quarter of 2024 to 43% in the same quarter of 2025, as domestic trading conditions continued to improve, despite some tariffs and uncertainty.
Sales trying International decided, increased by 74% during the quarter their sell through ordering taxes and demands continuously improve.
Consumer direct sales, the channel That Remains an encouraging growth for them to fight increased by 35% compared to the second quarter of 24.
Increasing by 45% in the second quarter of 2025.
Although us might turn into the brick and mortar dealers. Continue to manage some areas of elevated, inventory and Industry turmoil. That is stabilizing our data, our creatures selling capabilities of gaining. Fantastic momentum and participation in the market for our products remains strong.
Our profitability in the Philippines continues to improve.
4 million at 28%, increase in compared to the same 2024 quarter.
The quality continues to improve. We expect working capital Investments to increase in the coming months as ordering patterns of the consumer dealer and distributor levels continue to show growth patterns, but we are confident that we have sufficient liquidity to be on this growth.
On the next day, for the first 6 months of June 2025, our revenue increased by $10.85 billion, or 52%.
6 31.54 million dollars and net income increased by 4.13 million or 221% to 2.26 million cash increased by 3.36 million to 15.73 million. For the first 6 Months of the Year with cash flows provided by operations of 4.11 million.
Now, I'll turn to more details on sales of authority with a second quarter of 2025.
Sales of our Flagship net price. We have 700,000 dollars during the 25% increase over the same 2024 period from the early due to a 35% increase in the volume of net sales was sold in the 25% represents a 5% of our total revenue for the quarter.
Our body on the products up in price of just detectives full out the body, protectors new braces, new and older Gods also notify the beach and mountain biking shoes.
Body armor revenues here in 2025. Second quarter were 8.29 million with 48% increased. Over the same 2024 quarter, this increased cost, primarily attributable to a 35% increase in revenues and the sale of upper body Olympic action and the 108% increase in the sale of Footwear.
Private motorcycle boots and mountain biking shoes. Soldier 2025, second quarter.
Are you on a product representative 51% of revenues for the quarter?
How much sales in the 2025 second quarter? We have 2.11 million a 117% increase from earlier attributable to a 51% increase in a fail. A motor home is over the same 24 quarter and a 275% increase in the volume of MTB helmets. All in the 2025 second quarter helmet training is represented, 19% of total revenue is during the quarter.
2024, second quarter.
Other products passed in exactly where we used represented, 25% of our total revenues for the quarter.
We also placed that left once again recognized at eurobike, the world's leading Trade Fair for cycling and income ability.
Winning awards for our ability to consistently develop Technical Innovations, and functional wider protection pieces.
Our 5.0 gravity helmet on the Gold Award protected for performance.
6.0 hydraulic jackets, 1 in the performance clothing category.
Now, I'll send to our financial results in a bit more detail.
total revenues for the second quarter of 2025, there's 16.18 million up by 61% compared to 10 million dollars, for the second quarter of 2024,
The increase in worldwide revenues is about 282.7 million increase in body armor itself, a 1.68 million dollar increase in Harbor sales and 1.6 million dollars in increase in other product part and accessory cells. And a 110% increase
And get myself.
First proper for the second quarter worth 6.89 million up by 76% compared to 3.92 million in the second quarter of 2024.
Net income for the second quarter of 2535. Was 1.14 million or 18 cents per basic. And as you said, the diluted share,
Up 208% as compared to a net loss of 1.06 million or 72 cents per second, 60 cents per diluted share in the second quarter of 2024.
And on a year to date basis. Net income for the first 6 months of 2025 was 2.26 million or 366 cents per basic and 35 cents per diluted share.
Up 221% as compared to a net loss of 1.87 million or 30 cents per day. So in 2019 per diluted share for the sales per year in 2024
We have continued to make this worth the capital list from cash on hand and internally generated cash flow from operations and that's pretty June 2025. The company had cash and cash equivalent of 15.73 million and our current ratio of 7.421
Looking forward, our entire team is energized by the increasing response that we have received. Our products around the world are consistently good, and we are making tremendous progress despite the spikes and challenging industry conditions.
The strong Revenue growth by International, sulfur, and restocking Dynamics, and domestic sales, and Outreach programs that I've gained in this fantastic momentum, as we continue to invest in our team.
Our filling capabilities and our brand.
We expect this trend to continue. As we ordering patterns, continue to improve and 433 to our revenues.
although there are still some challenges here political and economic headlines globally, particularly in the US where tariffs could impact inflation, uncertainty and demand inventory continues to be digested by the next sales, Outreach and capabilities of Danny traction, and for participation remains strong,
We continue to manage our costs as well as actively and are working closely with supplying customers to mitigate therapists and costs wherever possible.
We strongly believe that our strategy of investing and talent Innovative product development and lead to the global consumer space and brand that appeals to a wide community of writing around the world will continue to fuel our growth moving forward. We remain passionate about our future with a strong portfolio of innovative products in the global market and in the pipeline and a
Channel 12 organization that is growing and developing. You remain confident that we are. Well, positioned for future growth and sustained shareholder value as always. We like to sometimes pay and be a family of dedicated employees business partners and team riders for their continued strong support. And with that, I'd like to turn the call over for any questions operator.
Thank you.
at this time, if you would like to ask a question, please press star 1 on your telephone keypad,
You may remove yourself from the Queue at any time by pressing star 2.
Once again, that is star 1 to ask a question.
And our first question will come from Crystal Christopher Mueller, private investor.
Hey Sean, I hope you're doing well today.
Yes.
Good to speak with you. Um, maybe 3 or 4 questions today. Um, first would you maybe add some color around the, uh, exceptionally strong Us sales? This quarter. Um, it looks like nearly 50% uh, growth both, uh, sequentially and year-over-year, uh, and and similar across both the consumer direct and dealer channels. So,
I guess I'm trying to understand how much of this could be attributed to, to any 1-time factors. Um, you know, maybe related to the timing of terrorists. Um, and and those Associated price increases um, versus this being more of an inflection point uh towards sustainable growth. Um, after all the uh personnel and operational changes, you've made their
Yeah, I think this is primarily, do you see the operational and personal changes that we made there? I mean we have new sales leadership in place uh, on the multi side of the business. Um, and we've made quite a lot of um, changes in terms of the programs that we're offering to dealers, um, and our relationship with dealers and certain strengths and a lot. Um, over the last 5 to 6 months, um, on the on the NPD side, we've been working really hard to to develop our our distribution capabilities. Uh we have a great, you have various different work groups that are not involved um in the business that are very experienced um and are considered to be the premium reps um in the Years MPD industry and uh all very charged up and very passionate about uh they'll be
Uh congratulations. Um, so a lot of opportunity, uh, on the marketing side of the business. Uh, as I said on loto, um, a whole new sales team, um, in terms of management, uh, in place, uh, with new goals, new, strategies new programs that are going out um uh to to the dealers. And are certainly opening new doors. And of course, we have the add program that has been absolutely fantastic. Our ad products are doing extremely well around the world in Europe, South America, and very strong uh, in the various markets. So, um, we certainly don't feel that a large percentage of our uh, growth is coming from 1, time items, or tariff increases. Uh, this is, um, a lot of hard work that we've been doing in terms of programs structuring and product development, and brand building, uh, and talent management, uh, over the last, uh, several months.
That's, that's great to hear. Um, and and it's great to see that, um, ADV line doing so well. Um, is it possible to maybe um roughly quantify ADV sales uh as like as a percentage of um Q2 Revenue.
Uh, currently, all of these cells are 15 to 20% is level revenues, obviously, depending on the quarter of a period. Um, and we do expect that to, to increase. Um, so it's proven to be a lot stronger than what we had expected. Uh, but yet brand, uh, and our ad products, and our distribution that we already have in place, um, is really doing a lot better than what we had thought it's it's, it's, it's been very well accepted by the market. Is that fantastic reviews on many of the different products that we, that we put out there. So, I just these products are attractive at the distributed dealer. Um, and, uh, in consumer level,
That's great. Um,
It, it looks.
like, you're
continuing the partnership with surefoot, uh, this summer for those bike park. Uh, pop-up Stores. Um, I assume this must be going well, um, since I think it's the, maybe the 10th year you've been doing this, um, but I'm only aware if you're doing it in a few locations. I guess I'm wondering whether the opportunity for that pop-up. Store model is, is, is really that limited, um, or maybe what metrics you'd you'd look to when considering to, um, expand that channel?
You know, these are really just the first steps that you see, in terms of shift, with kind of, uh, Partnerships.
Understood. Um, and then then last
After you recently hired 2, new marketing managers in Asia. Um, both with some lengthy uh Moto industry experience are these hires tied to any new uh, distributor relationships or the opening a new sales channels there? Um or is this just just broadly a a Greater brand investment in the region.
so we really, you know, we
um,
Very well for us. We grow themselves, uh, improving Market penetration, um, and making contact with um, you know, bringing on the bits or should it be the reason? Um, so we took a decision, uh, in terms of Asia, um, that focus on over um, was was needed. Um, it's a very different, uh, kind of Market to some of the other regions around the world and it needed specialist skill. Um, and that's the reason why we brought on a sales and brand manager, um, and a marketing manager and that will focus solely on from Asia building a distribution, um helping us um, with content that is um you know, appropriate in terms of Asian engagement. Um, and ultimately contributing to wherever you growth in the area, we do see as a, as a, a potential growth area for us.
Um, but it is specialized and it doesn't need um special specialist skill.
Hey, that was helpful as always uh thanks for the time. Sean chat soon.
Sounds good. Thank you.
Thank you.
Our next question will come from Olivia Colombo, private investor.
Good afternoon, Sean.
Congratulations on a very impressive Q2, and it's nice to see growth in the U.S. again. So, congratulations to you and the whole team.
I have a 3 questions for you.
Yes.
So, my first question is regarding, uh, tariffs, uh, some outdoor brands have given their growth impact for sales for this year.
How much would you think that represents would represent for you?
I think in in, in this case I mean,
you know, we we try to manage
The Tariff situation.
Carefully and acutely. Um, and of course we've been um discussing the situation. Um, finally with our our suppliers uh and watching the market really carefully in terms of uh, what's been happening, um, in terms of uh, retail, uh, selling prices. Um, and I think, you know, the biggest impact is, of course, in terms of uncertainty and that it creates and a potential impact on demand. Um,
And I shouldn't have inflationary. Um, precious of course, many, um, of our competitors are, um, that are importing from Asia. So they're exposed to carry out just like, we are. Um, so it's difficult to quantify exactly what the impact will be. It's also difficult to know exactly where a terrorist are on a circle. Um, you know, I certainly think, um, that we might have, uh, a bit of a contraction. Um, and, you know, myself might be a little bit lower than what we had. Um, kind of forecasted, um, in the us if we do see, um, you know, increase big increases, uh, in tariffs that the tariffs people on, you know, very high, double digit numbers. Uh, we might, we might have some contraction. I don't feel that it's going to be significant. Um, unless there are massive tariffs. Like the, the tariffs that were originally proposed the tariffs they call close to where they currently are.
Uh, I think the market will adjust to that, uh, some of the, um, pricing increases will obviously get passed on, uh, to Consumers. Um, and the, the manage some of the few, the, um, food supply chain. Um, so Olivia, I don't feel that it's going to be a significant impact on our numbers. It is difficult to quantify exactly how much, uh, because, of course, there's a lot of uncertainty around, where the tariffs are going to eventually be settled.
That's perfect. Thank you very much. I really appreciate. And then my, my last question would be, uh, regarding a eurobike. It seemed that you had a very big event there. Can you give us a quick recap of the meetings that you have with dealers and Distributors and what were the positives on your side and eventually the concerns on theirs?
From the Distributors, is that they are starting to see, uh, an uptick, um, in their stock requirements, which is reflected in the ordering taxes that we see nothing going on for the last several quarters, and it's filtering through to our Revenue. So we see it on our side. Um, many of our Distributors, and some of the new Distributors have been brought on, um, I was trying to gain really good Market traction for leases a brand, um, some of the overstocking, um, you know, that existed, um, in the industry of the last few years postco, um, is starting to improve and as industrywide, uh, you know, a lot of, um, competitive stuff that's been out there has been blocking repurchasing of their stock because of, of cash constraints as a dealer level, uh, we start to see that, uh, improving now. Uh, a dealers are starting to the left conservative regarding um, what they um, are are able to invest in. And that means that Distributors um are also
Uh, left conservative, which is why we, we've started to see this 422, um, to our numbers. Um, have you still feel that there's some uncertainty out there? Um, you know, if, uh, if I could wave a magic wand, um, and things were a lot more certain in terms of the tariffs, um, and some of the geopolitical risks um, in the Middle East, um and and Europe. And with some of those things of Triple G, I think that the um, that the sentiment would be far better um, than what it's currently in. So we are
Process of concerns around, uh, where all of that, um, is going to step off. But the good news, is that demand for their products is at, uh, the new Distributors as we go on and being exceptionally. Well, uh, with yet as a brand, uh, pleasantly surprised and regarding, um, consumer and dealer reaction, um, to, to stop in there. Um, and participation, um, is still strong. Um, as I said in terms of the concerns that is geopolitical, um, and there are still some pockets of Overstock, particularly on the bicycle side of things. Um, you know, we asked for some backgrounds, um, that we've seen have been in trouble. Um, and so there's a lot of box stuff that go out there. Um, that haven't disappeared. Uh, it's called being digested but the sentiment is positive. Things are certainly legal in the right direction and the bike industry is uh since we're getting a lot stronger than it was.
Uh, when I was like doing about last year,
That's perfect. Thank you very much. I really appreciate and I wish you and the team and excellent second half of the Year. Thank you very much, Sean.
Thank you. You're living here. Hope you
Thank you. And at this time, there are no further questions so I'd like to turn the call back over to Sean McDonald for any additional or closing remarks.
Thank you all for joining us today. We look forward to our next call to review the results of the 2025 third quarter.
Thank you, ladies and gentlemen.
The patient. You may disconnect at any time.