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

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