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Dec 31, 2024
Alto Ingredients Q4 2024 Earnings Report
Alto Ingredients reported a decline in revenue and a widened net loss for Q4 2024.
Key Takeaways
Alto Ingredients reported Q4 2024 revenue of $236.3 million, a decline from the prior year. The company posted a net loss of $42.0 million, widening from the previous year. Gross loss was $1.4 million, reflecting continued challenges in cost control. Strategic cost-cutting measures, including plant idling and headcount reductions, are expected to yield savings in the coming year.
Total revenue for Q4 2024 was $236.3 million, down from $273.6 million in Q4 2023.
Net loss widened to $42.0 million, compared to a loss of $19.3 million in Q4 2023.
Cost of goods sold exceeded revenue at $237.7 million, resulting in a gross loss.
Company expects annual cost savings of $8 million from restructuring efforts.
Alto Ingredients
Alto Ingredients
Alto Ingredients Revenue by Segment
Revenue by Segment
Marketing and distribution Revenue
CapyFin.comWestern production Revenue
CapyFin.com Forward Guidance
Alto Ingredients expects financial improvement from restructuring efforts and strategic asset optimization in 2025.
Positive Outlook
- Cost-cutting measures projected to save $8 million annually.
- Acquisition of a beverage-grade liquid CO2 processor expected to be accretive.
- Operational improvements at the Pekin wet mill enhancing efficiency.
- Strategic review underway for potential asset sales or mergers.
- Entry into the European market could provide new revenue streams.
Challenges Ahead
- Revenue decline expected due to cost pressures and lower demand.
- Margins remain compressed due to high cost of goods sold.
- Continued losses anticipated as restructuring efforts take effect.
- Asset impairments may continue to impact financial performance.
- Uncertainty surrounding potential strategic transactions and market conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income