Business
Alto Ingredients, Inc. Reports First Quarter 2023 Results
- Generated Sequential, Monthly Performance Improvements in 2023 - - Resumed Operations at Magic Valley, Idaho Plant in April 2023 - - Expects Positive
About this update from Alto Ingredients, Inc.
[{"type":"text","content":"- Generated Sequential, Monthly Performance Improvements in 2023 - - Resumed Operations at Magic Valley, Idaho Plant in April 2023 - - Expects Positive Adjusted EBITDA in Q2 2023 - PEKIN, Ill., May 08, 2023 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols and essential ingredients, reported its financial results for the quarter ended March 31, 2023. “In 2023, we continue to make good progress executing our transformative capital initiatives to drive our EBITDA expansion goals, and we are also pleased that current market improvements are positively impacting our business,” said Mike Kandris, CEO of Alto Ingredients. “Since December 2022, the market environment has improved sequentially each month. For the month of March, we generated positive bottom-line financial results. Based on current ethanol crush margins, we expect positive Adjusted EBITDA for the second quarter of 2023.” “We are confident in our ability to fund our near-term projects through a combination of working capital, our term loan facility and cash generated from our operating activities. We expect to achieve roughly $65 million of additional annualized EBITDA by the end of 2025, which we expect to increase to $125 million annualized EBITDA by the end of 2026. Overall, we believe these initiatives will significantly improve long-term shareholder value,” concluded Kandris. Alto Ingredients produces renewable products, specifically, specialty alcohols, essential ingredients and renewable fuel. Each of the company’s initiatives to expand EBITDA advances sustainability. Recent project updates follow. New 190 proof and low-moisture 200 proof grain neutral spirits products are attracting new and existing beverage customers on a spot purchase basis. The company expects to secure additional volume commitments during the annual contracting period for 2024.Magic Valley’s corn oil and high protein technology installation is complete, and the operating systems are undergoing alignment for optimal efficiency.Fully operational, the new silo at the Pekin campus is already reducing costs and improving plant reliability.Updates regarding several third-party, front-end engineering and design (FEED) studies include: Engaged firm for primary yeast production.Selected a firm for carbon capture and sequestration (CCS) t...