Alto Ingredients Reports Q1 2025 Financial Results with $11.7 Million Net Loss

Alto Ingredients, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $11.7 million, or $0.16 per share, compared to a net loss of $11.7 million, or $0.17 per share, in the same period of 2024. The company's net sales decreased by 5.9% to $226.5 million from $240.6 million year-over-year, primarily due to lower volumes and average sales prices of essential ingredients, despite an increase in average sales prices for specialty alcohols and renewable fuels. The gross loss improved to $1.8 million from a gross loss of $2.4 million in the prior year, reflecting cost-saving measures and operational efficiencies.

The company experienced a significant reduction in selling, general, and administrative expenses, which fell by 9.4% to $7.2 million, down from $7.9 million in the previous year. This reduction was attributed to the conclusion of acquisition-related expenses following the purchase of Kodiak Carbonic, LLC, a beverage-grade liquid CO2 processor, for $7.6 million on January 1, 2025. The acquisition is expected to enhance vertical integration and access to new markets, contributing positively to the company's financial performance.

Operationally, Alto Ingredients reported a decrease in total gallons sold, with renewable fuel gallons sold dropping to 65.3 million from 72.7 million in the prior year. The company’s Pekin Campus production segment saw a slight decline in alcohol sales, while the Western production segment experienced a more significant drop in both alcohol and essential ingredient sales. The company continues to focus on optimizing its production facilities and has implemented a 16% reduction in headcount, which is expected to yield annual savings of approximately $8 million.

Looking ahead, Alto Ingredients remains cautious about market conditions, particularly regarding the volatility of commodity prices and the impact of regulatory changes on the renewable fuels market. The company is optimistic about the potential for improved margins as it continues to leverage its recent acquisition and optimize its operations. The management emphasized the importance of maintaining flexibility in production and adapting to market demands, particularly as it navigates the challenges posed by high inventory levels and fluctuating demand for ethanol and essential ingredients.