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Mar 31, 2022
American Vanguard Q1 2022 Earnings Report
American Vanguard's Q1 2022 earnings were released, revealing a significant increase in net sales and net income compared to Q1 2021.
Key Takeaways
American Vanguard reported a strong start to 2022, with net sales up 29% and net income up 224% compared to the first quarter of 2021. The company's performance was driven by higher commodity prices, increased demand for crop protection solutions, and a focus on profitability through pricing actions and expense management.
Net sales increased by 29% to $149.4 million compared to $116.2 million in Q1 2021.
Net income increased by 224% to $9.9 million compared to $3.1 million in Q1 2021.
Earnings per diluted share were $0.33, up from $0.10 in the same period last year.
The company's gross profit margin was 41%, driven by pricing actions to offset inflationary cost escalations.
American Vanguard
American Vanguard
American Vanguard Revenue by Segment
American Vanguard Revenue by Geographic Location
Revenue by Segment
U.S. crop Revenue
CapyFin.comU.S. non-crop Revenue
CapyFin.comInternational Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
American Vanguard anticipates continued growth in both domestic and international markets, targeting 8-11% revenue growth, 38-40% profit margins, and operating expenses between 31-33% of net sales for 2022. The company will focus on developing its Green Solutions and SIMPAS/Ultimus technologies.
Positive Outlook
- Targeting 8-11% revenue growth.
- Expecting profit margins of 38-40%.
- Focusing on developing Green Solutions.
- Focusing on developing SIMPAS/Ultimus technologies.
- Situated well in both domestic and international markets.
Challenges Ahead
- Potential impact from the COVID-19 pandemic and government responses.
- Increasing costs and management attention due to a pending activism campaign.
- Effects of international exchange rates and economic conditions.
- Weather and climate conditions impacting performance.
- Changes in regulatory policies and specific regulations affecting products.
Revenue & Expenses
Visualization of income flow from segment revenue to net income