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Sep 30, 2024
American Vanguard Q3 2024 Earnings Report
American Vanguard reported Q3 2024 results, with non-crop revenues growing by 17% and green solutions revenues increasing by 18% year-over-year. The company reduced debt by $32.5 million and is raising expected annual transformation benefits to $20 million.
Key Takeaways
American Vanguard reported a decrease in net sales to $118.3 million compared to $149.5 million in the third quarter of 2023. The company's EPS was $(0.92) compared to ($0.01) in the previous year. Despite these challenges, non-crop and green solutions businesses showed strong growth, and the company is making progress with its business transformation, expecting increased annual benefits.
Net sales were $118.3 million, which includes the impact of the Dacthal product recall, compared to $149.5 million in Q3 2023.
Adjusted EBITDA was $1.8 million, down from $11.4 million in the same quarter last year.
EPS was $(0.92), compared to $(0.01) in the third quarter of 2023.
The company reduced debt by $32.5 million from the previous quarter.
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
The Company reiterated its full year 2024 revenue (down 2% to flat, excluding the product recall charge) and adjusted EBITDA ($40—$50 million) targets.
Positive Outlook
- Full year 2024 revenue target reiterated (down 2% to flat, excluding the product recall charge)
- Full year 2024 adjusted EBITDA target reiterated ($40-$50 million)
- Company is focused on returning to consistent free cash flow generation
- Near-term free cash flow will be allocated towards further deleveraging
- Medium to long-term free cash flow will be applied to growth opportunities
Challenges Ahead
- One-time charges associated with business transformation
- Incurred $8.1 million transformation charge during the quarter
- Recorded $16.2 million charge associated with the collection and disposal of Dacthal
- Macroeconomic headwinds
- Pressure from generics
Revenue & Expenses
Visualization of income flow from segment revenue to net income