Nocera 2025 Q1 Earnings Revenue Decline with Improved Net Loss

Nocera (NCRA) reported its fiscal 2025 Q1 earnings on June 20th, 2025. Revenue The total revenue for Nocera in Q1 2025 experienced a 7.5% decline, decreasing to $4.53 million from $4.90 million in Q1 2024. The revenue breakdown shows fish trading sales contributing $4.47 million, with net sales matching the total revenue of $4.53 million. The catering segment added $2,089, while e-commerce activities generated $57,833. Despite the challenges in fish trading and catering, the company remains committed to expanding its market presence through strategic e-commerce initiatives. Earnings/Net Income Nocera reported a narrowed net loss of $257,617 for Q1 2025, showing a 13.0% improvement from the $296,076 loss in Q1 2024. The company also reduced its loss per share to $0.02, indicating better management of operational expenses and cost control measures. Despite losses, the improvement suggests cautious optimism for future financial health. Price Action The stock price of Nocera edged up 1.89% during the latest trading day, though it dropped 3.11% over the past week and declined 1.17% month-to-date. Post-Earnings Price Action Review The investment strategy of acquiring Nocera shares following a quarter-over-quarter revenue increase and holding for 30 days has proven unsuccessful. The strategy yielded a negative CAGR of 36.72% and overall returns of -72.70%, with an excess return of -113.75%. It also faced a substantial maximum drawdown of -79.55%, emphasizing high risk and unfavorable returns. This illustrates the strategy's ineffectiveness in generating positive outcomes, as indicated by a Sharpe ratio of -0.33, highlighting the significant volatility and negative performance of Nocera shares under this approach.

CEO Commentary Andy Chin-An Jin, CEO of Nocera, acknowledged ongoing challenges, citing decreased revenue primarily due to weaker sales in fish trading and catering. Despite these hurdles, Jin expressed optimism about strategic priorities, emphasizing investments in technology and expanding e-commerce initiatives. He affirmed the company's dedication to controlling cash expenses while pursuing revenue growth, indicating a cautious yet determined leadership focus on future progress. Guidance Nocera plans to continue investing in operational growth, targeting a revenue of approximately $16 million for fiscal year 2025. The company anticipates capital expenditures around $30 million, mainly to boost fish farming capabilities in the U.S. and Taiwan. Leadership remains committed to enhancing operational efficiencies and generating positive cash flows, with expectations for increased market penetration through innovative sales strategies and partnerships. Additional News Recently, Nocera has been active in mergers and acquisitions, including a strategic acquisition of Hangzhou SY Culture Media Co. Ltd., a Douyin livestreaming e-commerce company. This move aligns with Nocera's efforts to strengthen its e-commerce platform and expand its digital engagement. Additionally, the company announced executive changes with Yiwen Zhang and Song-Yuan Teng joining the board of directors, signaling a strategic shift in leadership. Nocera also regained compliance with Nasdaq filing requirements after addressing a delayed filing issue, showcasing its commitment to maintaining regulatory standards and ensuring continued market presence.