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ALTO Nasdaq· Alto Ingredients Inc.
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ALTO Nasdaq· Alto Ingredients Inc.
Earnings report Q3 2023

ALTO INGREDIENTS, INC. Reports Decrease in Revenue for the Latest Quarter

Segments of Revenue

ALTO INGREDIENTS, INC. reported net sales of $318.1 million for the latest quarter, a decrease of 5.5% compared to the same quarter last year. The company's revenue for the nine months ended September 30, 2023, was $949.3 million, a decrease of 5.7% compared to the same period in the previous year.

Strengths

Despite the decrease in revenue, ALTO INGREDIENTS, INC. managed to maintain a gross profit of $4.2 million for the latest quarter, compared to a gross loss of $19.8 million in the same quarter last year. This improvement can be attributed to the company's efforts to reduce its cost of goods sold, which decreased by 11.9% compared to the previous year. Additionally, ALTO INGREDIENTS, INC. reported income from a cash grant of $2.8 million for the nine months ended September 30, 2023, which contributed to the company's overall financial performance.

Challenges

ALTO INGREDIENTS, INC. faced challenges in the latest quarter, as evidenced by the loss from operations of $4.3 million, compared to a loss of $27.2 million in the same quarter last year. The company's selling, general, and administrative expenses increased by 14.9% compared to the previous year, which impacted its profitability. Furthermore, ALTO INGREDIENTS, INC. incurred interest expenses of $2.0 million for the latest quarter, reflecting a significant increase compared to the same quarter last year.

Noteworthy

It is worth noting that ALTO INGREDIENTS, INC. reported asset impairments of $574,000 in the previous year, which did not occur in the latest quarter. This absence of asset impairments contributed to the company's improved financial performance. Additionally, the company reported gains on derivative instruments of $2.5 million for the nine months ended September 30, 2023, which partially offset its overall loss.

Summary

ALTO INGREDIENTS, INC. experienced a decrease in revenue for the latest quarter, primarily driven by higher selling, general, and administrative expenses and increased interest expenses. However, the company managed to improve its gross profit and reported income from a cash grant, which positively impacted its financial performance. ALTO INGREDIENTS, INC. should focus on controlling its expenses and optimizing its operations to mitigate the challenges it faced in the latest quarter.

Source documents

Form 10-Q  filed on Nov 08, 2023
136 pages scanned

Reference data

Company financials Q3 revenue 274M
Analyst estimates Q3 EPS missed by -163.89%
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