Amvac sales up 39% in Q1 2013

Date:05-07-2013

Net Sales of American Vanguard (Amvac) increased by 39.2% to $121.5 million in the first quarter ended Mar 31, 2013, driven largely by the strong demand for both granular soil insecticides and Impact® herbicide in the U.S. corn market. Net income substantially rose by 94.3% to $16.9 million due to stronger sales, improved gross margins and operating expense management.

Gross profit margins rose to 44% on a profitable product mix, improved pricing and continued progress on factory utilization. Operating expenses as a percentage of net sales declined to 23%, despite higher selling and administrative expenses associated with their dynamic growth.

Amvac sales result ($million)
Q1 ended Mar. 31	Q1 2013	Q1 2012	% change
Net Sales	121.5	87.3	39.2
Net Income	16.9	8.7	94.3

Eric Wintemute, Chairman and CEO of American Vanguard, stated, "First quarter sales of granular soil insecticides for corn continued their strong fourth quarter 2012 trend. This is driven by U.S. corn growers who continue to support our proven crop protection products in conjunction with genetically modified seeds, as part of an integrated pest management system. This provides the most comprehensive defense against root damaging soil insects. American Vanguard has the largest offering of these yield enhancing insecticides along with the most advanced, closed delivery equipment for safely and efficiently dispensing these products. We also are benefitting from our co-marketing program with Monsanto, which rewards corn growers for using AMVAC's Impact® post-emergent herbicide with Monsanto's widely used Roundup® glyphosate herbicide brands."

Mr. Wintemute concluded, "We continue to expand our business with a number of exciting new developments. During the quarter we announced the registration of our SmartBlock® potato sprout inhibitor, our investment in the natural products technology of TyraTech, Inc. and the continued staffing of our international subsidiary in the Netherlands. "