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Mar 31, 2024
Alto Ingredients Q1 2024 Earnings Report
Improved gross profit, net loss, and Adjusted EBITDA compared to Q1 2023.
Key Takeaways
Alto Ingredients reported improved first quarter 2024 results with gross profit increasing by $0.8 million, net loss decreasing by $1.4 million, and Adjusted EBITDA increasing by $3.4 million compared to the first quarter of 2023. However, weather factors and energy hedging activities impacted the quarter's performance.
Strategies to diversify revenue, improve capacity utilization rates, reduce costs and expand operating margins are coming to fruition.
First quarter 2024 financial results benefited from improved crush margins and efforts to increase essential ingredient returns and operating efficiencies.
Cold spike at the Pekin campus increased transportation related expenses, reduced production rates and caused a shift to lower margin feed products.
Unseasonably moderate weather conditions and ensuing low natural gas prices resulted in an incremental loss of $4.9 million from energy hedging activities.
Alto Ingredients
Alto Ingredients
Alto Ingredients Revenue by Segment
Revenue by Segment
Pekin Campus production Revenue
CapyFin.comMarketing and distribution Revenue
CapyFin.comWestern production Revenue
CapyFin.comCorporate and other Revenue
CapyFin.com Forward Guidance
The market outlook for the rest of 2024 remains favorable, supported by solid corn inventories, improved export demand for ethanol and the EPA’s summer waiver for 15% blends.
Positive Outlook
- Solid corn inventories
- Improved export demand for ethanol
- EPA’s summer waiver for 15% blends.
- Scheduled biennial outage at our Pekin wet mill was completed in April 2024 and will result in more consistent and higher production rates
- Improving reliability as we approach the summer driving season
Challenges Ahead
- Cold spike at the Pekin campus increased transportation related expenses
- Reduced production rates
- Shift to lower margin feed products
- Unseasonably moderate weather conditions
- Low natural gas prices resulted in an incremental loss of $4.9 million from our energy hedging activities
Revenue & Expenses
Visualization of income flow from segment revenue to net income