Alto Ingredients, Inc. Reports Fourth Quarter and Year-end 2024 Results

Alto Ingredients, Inc., a leading producer and distributor of specialty alcohols, renewable fuels, and essential ingredients, has released its financial results for the fourth quarter and year ended December 31, 2024. The company has implemented significant cost-saving measures and strategic initiatives aimed at long-term growth and sustainability.

Financial Highlights

For the fourth quarter of 2024, Alto Ingredients reported net sales of $236.3 million, a decrease from $273.6 million in the same period of 2023. The cost of goods sold also decreased to $237.7 million from $276.2 million. The company experienced a gross loss of $1.4 million, which included $3.5 million in realized losses on derivatives, compared to a gross loss of $2.5 million in the previous year.

Net loss attributable to common stockholders was $42.0 million, or $0.57 per share, compared to $19.3 million, or $0.26 per share, in the fourth quarter of 2023. Adjusted EBITDA was negative $7.7 million, including $3.5 million in realized losses on derivatives, compared to positive $3.5 million in the same period of 2023.

Business and Operational Highlights

During the fourth quarter, Alto Ingredients implemented cost-saving initiatives, including cold idling its Magic Valley plant and reducing total company headcount by 16%. These measures are expected to save approximately $8 million annually starting in the second quarter of 2025. Additionally, the company acquired a beverage-grade liquid carbon dioxide processor adjacent to its Columbia site, which is expected to provide cost synergies and expanded production opportunities.

Strategic Initiatives and Corporate Developments

Alto Ingredients is considering a range of strategic options, including asset sales, a merger, or other transactions to better align the long-term value potential of the company. The company also recognized over $30 million in asset impairments and prior acquisition-related expenses during the fourth quarter, resetting its financial base for future growth.

Management's Perspective

President and CEO Bryon McGregor highlighted the company's efforts to rightsize its organizational footprint and position for long-term sustainable growth. He emphasized the immediate accretive nature of the recent acquisition and the potential for cost synergies and expanded production. Chief Financial Officer Rob Olander noted that the restructuring has improved Alto's financial position and expressed optimism about the company's performance in 2025.

Future Outlook

Alto Ingredients is optimistic about its prospects for 2025, driven by reduced expenses, improved performance at the Pekin wet mill, the synergistic acquisition of premium liquid CO2 processing, and entry into the European market. The company continues to explore opportunities to optimize carbon utilization and valuation.

SEC Filing: Alto Ingredients, Inc. [ ALTO ] - 8-K - Mar. 05, 2025