The following is a summary of the Alto Ingredients, Inc. (ALTO) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Alto Ingredients reported Q2 2024 net sales of $236 million, down from $317 million in Q2 2023, mainly due to lower market prices.

• Gross profit for Q2 2024 was $7.6 million, a decrease from Q2 2023, but an improvement over Q1 2024.

• The company experienced a consolidated net loss of $3.1 million in Q2 2024 versus a net income of $7.6 million in Q2 2023.

• Adjusted EBITDA for Q2 2024 was negative $5.9 million, including costs related to mill outage and losses on derivatives.

Business Progress:

• Alto Ingredients is strategically enhancing its production capacity and efficiency, notably through the addition of a second loading dock at the Pekin campus that is expected to reduce transportation costs substantially.

• They continue to embrace sustainability with their ICP and Pekin plants receiving a 2024 Bronze Medal sustainability rating from EcoVadis.

• They restarted operations at the Magic Valley plant with adjustments improving operational capacity utilization and product quality.

Opportunities:

• The company's operations now include a focus on carbon capture and storage (CCS) projects, and recent legislative developments like the SAFE CCS Act are expected to shape their compliance and operational actions moving forward.

Risks:

• Increased production costs due to biannual wet mill outages and maintenance activities, coupled with lower feed and carbon prices, specifically impacted their financial results in Q2.

• The fluctuating costs and uncertain revenue projections related to the carbon capture and storage (CCS) projects, due to dynamic market conditions and new regulatory requirements, pose a potential risk.

More details: Alto Ingredients IR

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