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Davis Commodities Limited: First Half of Fiscal Year 2025 Unaudited Financial Results

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Davis Commodities Limited: First Half of Fiscal Year 2025 Unaudited Financial Results

Davis Commodities Limited (Nasdaq: DTCK) reported H1 2025 revenue of $95.0 million, up 42.1% year-over-year, driven by increased demand for sugar, rice, and oil products across Africa and China. However, net income declined 96.9% to $0.04 million due to compressed margins from rising raw material and logistics costs that couldn't be fully passed to customers, alongside regulatory headwinds in Vietnam and Thailand.

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DTCK   negative

While revenue grew 42.1% to $95.0 million, profitability collapsed with net income declining 96.9% to $0.04 million. Gross margins compressed from 4.4% to 2.8% due to rising raw material and transportation costs that couldn't be passed to customers. Additionally, regulatory bans in Vietnam and Thailand significantly impacted trading activities, and operating cash flow was negative at -$2.3 million, indicating operational challenges despite top-line growth.