On August 6, 2024, Alto Ingredients Inc (ALTO, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. The company, a producer of specialty alcohols and essential ingredients, serves markets including Health, Home and Beauty, Food and Beverage, Essential Ingredients, and Renewable Fuels.
Performance Overview
Alto Ingredients Inc (ALTO, Financial) reported a net loss of $3.1 million for Q2 2024, translating to a loss of $0.05 per share. This result is above the analyst estimate of a $0.10 loss per share. Revenue for the quarter was $236.47 million, also exceeding the estimated $232.48 million.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $236.47 million | $317.30 million |
| Gross Profit | $7.55 million | $17.18 million |
| Net Income (Loss) | $(3.11) million | $7.60 million |
| Adjusted EBITDA | $(5.93) million | $14.05 million |
Operational Highlights
Alto Ingredients Inc (ALTO, Financial) faced significant operational challenges during the quarter. The company incurred over $5 million in expenses related to planned facility outages at its Pekin wet mill. Despite these costs, the Pekin Campus delivered over $10 million in gross profit, up from $4 million in Q1 2024.
"Our Pekin Campus is fully operational and taking advantage of the favorable summer driving season economics. In July, average crush margins more than doubled compared to the second quarter," said Bryon McGregor, President and CEO of Alto Ingredients.
Financial Position
As of June 30, 2024, Alto Ingredients Inc (ALTO, Financial) had $27.1 million in cash and cash equivalents, down from $30.0 million at the end of 2023. The company's borrowing availability stood at $95.0 million, including $30.0 million under its operating line of credit and $65.0 million under its term loan facility.
Segment Performance
The company's performance is segmented into Marketing and Distribution, Pekin Campus Production, and Other Production. The Pekin Campus, which accounts for about half of the firm's revenue, showed improved capacity utilization and reduced fixed costs per unit due to recent upgrades.
Challenges and Future Outlook
Alto Ingredients Inc (ALTO, Financial) continues to face challenges such as fluctuating raw material costs and market conditions. However, the company remains optimistic about its future performance, expecting to deliver positive Adjusted EBITDA for Q3 2024 if current margins hold and production targets are met.
For more detailed financial information, readers can access the full 8-K filing.
Explore the complete 8-K earnings release (here) from Alto Ingredients Inc for further details.
