May. 10, 2021
On May 6, American Vanguard Corporation (NYSE: AVD) announced financial results for the first quarter ended March 31, 2021.
Fiscal 2021 First Quarter Financial Highlights – versus Fiscal 2020 First Quarter:
• Net sales were $116 million in 2021, compared to $96 million in 2020.
• Net income was $3.07 million in 2021, compared to $0.52 million in 2020.
• Earnings per diluted share of $0.10 in 2021, compared to $0.02 in 2020.
• EBITDA of $12.1 million in 2021, compared to $7.6 million in 2020.
Eric Wintemute, Chairman and CEO of American Vanguard stated: “We are pleased to report a much-improved start to 2021 both at the top and bottom lines, as compared to the prior year. Domestically, after several years of relatively stagnant crop prices, we are beginning to see higher commodity prices, which, in turn, has helped spur demand for both our soybean products and our corn herbicide portfolio. In non-crop uses, we experienced steady demand for mosquito control products, a recovery in the horticulture segment and higher royalties from our essential oil products for consumer use. Internationally, we enjoyed improved performance in Mexico and Brazil, while continuing to expand globally with the additions of Agrinos biological products and the integration of AgNova in Australia. Gross profit margins were just below those of the comparable quarter in 2020, while net income for the quarter was 6 times that of the prior year period.”
He continued: “During the quarter, we kept a focus on balance sheet integrity and controlled inventory levels. We also exercised discipline with respect to operating expense (which declined as a percent of net sales) and debt management within the usual seasonal cycle for our business. Further, we produced profitable results while self-funding strategic growth initiatives, including our SIMPAS prescription application system with the Ultimus tracing/verification platform, which we are positioning as a comprehensive solution for the carbon credit market.”
Mr. Wintemute concluded: “Over the course of 2021, we expect a low double-digit increase in net sales with stronger growth in net income. ”
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