Mace® Security International Reports Decline in Q1 2024 Revenue Amidst E-Commerce Growth

Mace Security International Inc. (OTCQB: MACE) disclosed its financial outcomes for the first quarter of 2024, highlighting a continuation of challenges and some areas of growth. The Cleveland-based personal safety products manufacturer reported net sales of $1,357,000, which marks an 18% decrease compared to the same period in the previous year. This decline is largely attributed to decreased impulse purchasing at retail, exacerbated by ongoing inflationary pressures despite a substantial 84% growth in e-commerce sales.

The company's gross profit rate improved significantly, reaching 33% in Q1 2024 compared to 25% in Q1 2023. This improvement stems from a more favorable sales channel mix and increased manufacturing efficiencies. While selling, general and administrative expenses were reduced by 7%, adjusted EBITDA showed a loss of $488,000, which is an improvement from the $550,000 loss recorded in Q1 2023.

CEO Sanjay Singh emphasized the impact of strategic ecommerce enhancements and cost management efforts that are expected to alleviate financial strains. Notably, the launch of new products like the s2 Pepper Launcher is projected to further boost online engagement and sales, as indicated by the 27% increase in daily average web sessions on the company's site compared to last year.

The reported financials reflect Mace's strategic adjustments in response to ongoing economic challenges and shifting consumer behaviors. The firm continues to focus on operational efficiency and market-responsive innovations to navigate the demanding retail landscape.