American Vanguard Corporation reported net sales of $118.3 million for the third quarter ended September 30, 2024, a 21% decrease compared to $149.5 million in the prior-year period. The company recorded a net loss of $25.7 million, or $0.92 per share, and an adjusted EBITDA of $1.8 million, down from $11.4 million in Q3 2023. Gross profit margin declined to 15% from 29% year-over-year.
The decline in sales was primarily attributed to a significant drop in Aztec sales, which were unusually high in Q3 2023 due to a previous supply shortage, and pressure from generic competition impacting Folex. The company incurred an $8.1 million transformation charge and a $16.2 million charge related to the collection and disposal of Dacthal. Despite these headwinds, non-crop revenues grew 17% and Green Solutions revenues increased 18% year-over-year.
Management reiterated its full-year 2024 adjusted EBITDA guidance of $40 million to $50 million and raised the expected annual benefits from its business transformation to $20 million, up from the previous estimate of $15 million. The company also reduced its long-term debt by $32.5 million during the quarter, bringing the total to $179 million, and aims to decrease inventory to 34% of sales by year-end.
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