Q1 2025 Alto Ingredients Inc Earnings Call Transcript
Key Points
- Gross margin and adjusted EBITDA improved compared to Q1 2024, reflecting operational uptime and strategic acquisitions.
- The acquisition of a beverage-grade liquid carbon dioxide processing plant has reduced management and staffing costs while enhancing operational coordination.
- The company expects to save approximately $8 million annually from a 16% reduction in headcount, with financial benefits starting in Q2.
- Alto Ingredients Inc (ALTO) has diversified revenue streams by earning ISCC certification, allowing access to higher-margin sales in European markets.
- The company is prioritizing quick return projects, including water and energy optimization, to reduce utility costs and lower its carbon footprint.
- Premiums on domestic high-quality alcohol were generally lower in Q1 compared to the same quarter last year due to increased competition.
- Prices for essential ingredients declined because of the rise in soybean oil supply, negatively impacting sales.
- The Pekin load-out dock was damaged due to rising river levels, affecting production and logistics.
- Concerns over tariffs and Chinese vessel restrictions have introduced greater export uncertainty.
- Without a meaningful reduction in ethanol supply, substantial crush spread improvements may be constrained.
Good day and welcome to the Alto Ingredients first-quarter 2025 financial results conference call. (Operator Instructions) Please note this event is being recorded.
I'd like to turn the conference over to Kirsten Chapman, Alliance Advisors, Investor Relations. Please go ahead.
Thank you, Darcy, and thank you, all, for joining us today for the Alto Ingredients first-quarter 2025 results conference call. On the call today are President and CEO, Bryon McGregor; and CFO, Rob Olander.
Alto Ingredients issued a press release after market closed today, providing details of the company's financial results for the first quarter of 2025. The company also prepared a presentation for today's call that is available on the company's website at altoingredients.com.
A telephone replay of today's call will be available through May 14, the details of which are included in today's press release. A webcast replay will also be available on Alto Ingredient's website. Please note that the information
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