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Dec 31, 2023

American Vanguard Q4 2023 Earnings Report

American Vanguard's Q4 2023 earnings demonstrated a strong rebound with increased revenue and net income compared to the previous year, driven by subsiding destocking activities and effective management.

Key Takeaways

American Vanguard reported a strong Q4 2023 with net sales of $172.2 million, a net income of $7.0 million, and earnings per diluted share of $0.25. The company's performance reflects a rebound from earlier challenges, driven by increased demand and effective operational strategies.

Net sales increased to $172.2 million compared to $159.5 million in the same quarter of the previous year.

Net income rose to $7.0 million, up from $3.9 million in the prior year's quarter.

Earnings per diluted share reached $0.25, an increase from $0.13 in the corresponding period of 2022.

Adjusted EBITDA stood at $21 million, compared to $12 million in the prior year.

Total Revenue
$172M
Previous year: $160M
+7.6%
EPS
$0.25
Previous year: $0.14
+78.6%
EBITDA
$22M
Gross Profit
$54.6M
Previous year: $59M
-7.4%
Cash and Equivalents
$11.4M
Previous year: $20.3M
-43.8%
Free Cash Flow
$83.8M
Total Assets
$768M
Previous year: $726M
+5.7%

American Vanguard

American Vanguard

Forward Guidance

American Vanguard is targeting 8 to 12% revenue growth and an adjusted EBITDA range of $70 to $80 million for the full year 2024. The company expects strong gross profit margins, tight management of operating expenses, and efficient factory performance. Additionally, through their business transformation initiative, they are targeting growth of adjusted EBITDA to 15% of net sales, with the full benefit to be realized by 2026.

Positive Outlook

  • Targeting 8 to 12% revenue growth.
  • Expecting strong gross profit margins.
  • Planning for tight management of operating expenses.
  • Aiming for efficient factory performance.
  • Targeting growth of adjusted EBITDA to 15% of net sales through a business transformation initiative.