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PEKIN, Ill. - Alto Ingredients, Inc. (NASDAQ:ALTO), a producer of specialty alcohols and renewable fuels, reported a wider-than-expected loss for the fourth quarter of 2024 as the company implemented cost-saving measures and considered strategic options.
The company reported a Q4 loss of $0.57 per share, significantly below the analyst estimate of $0.06 earnings per share. Revenue came in at $236.3 million, missing the consensus estimate of $268.62 million and down 13.6% YoY from $273.6 million.
Alto Ingredients implemented cost-saving initiatives including idling its Magic Valley plant and reducing total company headcount by 16%. The company expects these measures to save approximately $8 million annually starting in Q2 2025.
"We rightsized the company to our smaller organizational footprint to position for long-term sustainable growth," said Bryon McGregor, President and CEO of Alto Ingredients.
The company recognized over $30 million in asset impairments and acquisition-related expenses in Q4, including $24.8 million in asset impairments related to Magic Valley and Eagle Alcohol.
On January 1st, Alto Ingredients acquired a beverage-grade liquid carbon dioxide processor, which it expects to be immediately accretive with a payback period of less than two years.
CFO Rob Olander expressed optimism for 2025, citing the company’s reduced expense run rate, improved performance at its Pekin wet mill, and entry into the European market.
Alto Ingredients ended the quarter with $35.5 million in cash and cash equivalents, up from $30.0 million at the end of 2023. The company’s stock showed no significant movement following the earnings release.
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