The following is a summary of the Alto Ingredients, Inc. (ALTO) Q2 2024 Earnings Call Transcript:
Financial Performance:
Alto Ingredients reported Q2 2024 net sales of $236 million, down from $317 million in Q2 2023, mainly due to lower market prices.
Gross profit for Q2 2024 was $7.6 million, a decrease from Q2 2023, but an improvement over Q1 2024.
The company experienced a consolidated net loss of $3.1 million in Q2 2024 versus a net income of $7.6 million in Q2 2023.
Adjusted EBITDA for Q2 2024 was negative $5.9 million, including costs related to mill outage and losses on derivatives.
Business Progress:
Alto Ingredients is strategically enhancing its production capacity and efficiency, notably through the addition of a second loading dock at the Pekin campus that is expected to reduce transportation costs substantially.
They continue to embrace sustainability with their ICP and Pekin plants receiving a 2024 Bronze Medal sustainability rating from EcoVadis.
They restarted operations at the Magic Valley plant with adjustments improving operational capacity utilization and product quality.
Opportunities:
The company's operations now include a focus on carbon capture and storage (CCS) projects, and recent legislative developments like the SAFE CCS Act are expected to shape their compliance and operational actions moving forward.
Risks:
Increased production costs due to biannual wet mill outages and maintenance activities, coupled with lower feed and carbon prices, specifically impacted their financial results in Q2.
The fluctuating costs and uncertain revenue projections related to the carbon capture and storage (CCS) projects, due to dynamic market conditions and new regulatory requirements, pose a potential risk.
More details: Alto Ingredients IR
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