The following is a summary of the Alto Ingredients, Inc. (ALTO) Q4 2023 Earnings Call Transcript:
Financial Performance:
Alto Ingredients reported a gross profit of $16 million for 2023, marking an improvement of $43 million from 2022.
The adjusted EBITDA was approximately $21 million, which is $27 million better than the previous year.
The company's Q4 2023 gross loss was $3 million, a comparative improvement of $19 million from Q4 2022.
Alto recorded net sales of $274 million in Q4, with annual sales reaching $1.2 billion.
Gallon sales in 2023 totalled 382 million, down from 419 million gallons in 2022.
Alto ended 2023 with a cash balance of $30 million, brought about by $22 million garnered from operations.
Alto's financial outlay towards capital development in 2023 stood at $30 million, and is projected at $25 million for 2024.
Business Progress:
The company made massive enhancements to facilities in 2023 improving capacity utilization and expanding margins.
The carbon capture and storage (CCS) project was prioritized, offering economical advantages, and a non-binding intent letter has been signed with Vault to develop the project.
The implementation of a grain silo in Pekin, operational from Q2 2023, has helped double corn storage capabilities and reduce costs.
Plans have been paused regarding the development of primary yeast and biogas conversion projects to focus on the CCS project.
A distribution scheme has expanded into Southern California with design improvements underway for boosted corn yield and protein targets by 2024.
Alto expects to witness additional growth in 2024 due to advantageous market factors and efforts towards further sustainability have seen improvements in ratings.
More details: Alto Ingredients IR
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