The following is a summary of the Alto Ingredients, Inc. (ALTO) Q1 2024 Earnings Call Transcript:
Financial Performance:
Alto Ingredients reported Q1 2024 net sales of $241 million, down from $314 million in Q1 2023 due to lower market prices.
The company sold the same volume of 99 million gallons during both Q1 2024 and 2023.
The gross loss improved by $800,000 and adjusted EBITDA improved by $3.4 million in Q1 2024 compared to Q1 2023, reflecting better ethanol crush margins, increased sales of specialty alcohol, and efficiency efforts. However, these were somewhat offset by a $4.9 million loss from natural gas hedging activities.
Business Progress:
Alto Ingredients has prioritized refining operations to produce a mix of essential ingredients and the top quality beverage alcohol.
The Carbon Capture and Storage (CCS) initiative is being prioritized, with negotiations ongoing with potential financial partners and with Vault, a leading CCS developer.
Sales of specialty alcohol products have increased, with 26 million gallons sold in Q1 2024, a rise from 21 million gallons in Q1 2023.
The company completed maintenance and upgrades at their Pekin campus wet mill, which is expected to enhance consistency and boost production rates.
Work is ongoing at Magic Valley to reduce the impact of low-crush margins and high destination corn basis in an effort to return the facility to sustainable profitability.
Other opportunities, such as sustainable aviation fuel (SAF), are being explored, and CapEx target for 2024 is set to be kept below $25 million, down from the figures of the past two years.
More details: Alto Ingredients IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.