Alto Ingredients, a Pekin, Ill.-based company, has announced a delay in its EBITDA expansion goals due to mounting inflationary pressures and supply chain constraints. The company now expects to achieve these objectives within an extended timeframe of six to twelve months. This decision comes in response to the evolving capital requirements and the current state of capital-market conditions.
The company's Q3 report showed a net loss of 5 cents per share on sales of $318.1 million, marking a significant contrast to the previous year when it reported a loss of 39 cents per share. This downturn resulted in a 53% drop in the company's stock value.
Despite these financial challenges, Alto Ingredients has seen some positive developments. A $2.8 million USDA cash grant improved the figures for this quarter. Additionally, promising outcomes from their primary yeast front-end engineering design study have led to an increase in revenue projections and installation costs.
However, these positive aspects have been overshadowed by the aforementioned market pressures. The company is now focusing on navigating these challenges while adjusting its financial goals accordingly.
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