Business
Alto Ingredients, Inc. Reports Fourth Quarter and Full Year 2022 Results
- Growth, Revenue Diversification and Efficiency Initiatives to Expand Annualized EBITDA by Over $65 Million by the End of 2025 and Over $125 Million by the
About this update from Alto Ingredients, Inc.
[{"type":"text","content":"- Growth, Revenue Diversification and Efficiency Initiatives to Expand Annualized EBITDA by Over $65 Million by the End of 2025 and Over $125 Million by the End of 2026 - PEKIN, Ill., March 09, 2023 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols and essential ingredients, reported its fourth quarter and full year 2022 financial results for the year ended December 31, 2022. “Alto has been executing a series of growth initiatives to diversify our revenue streams, maximize our high-margin products, and optimize our operations to continue our business transformation,” said Mike Kandris, CEO of Alto Ingredients. “Our efforts are coming to fruition. Our specialty alcohol infrastructure upgrades are complete, and we are excited to introduce our new high-quality 190 proof and low-moisture 200 proof grain neutral spirits products to our existing and target customers in the beverage, food, flavor, personal care and pharmaceutical industries. In October 2022, we finished the installation of our new corn oil technology at our Magic Valley facility, improving production levels and exceeding yield expectations. With this proof-of-concept, we plan to roll out the system at our three other dry mills. We are nearing completion of our high protein installation at our Magic Valley facility. In addition, we are advancing plans to launch our carbon capture sequestration project and to develop primary yeast production. Also, we are progressing with our strategies to improve plant efficiency, reliability, redundancy, and capacity with additional corn storage, a natural gas pipeline installation, biogas conversion to renewable natural gas, energy cogeneration capabilities and other equipment upgrades. “Our 2022 financial results, which were negatively impacted by commodity price swings, underscore our need to reduce our reliance on fuel ethanol margins. To accelerate our revenue diversification and growth plan, in November 2022, we increased our access to capital with a term loan for up to $125 million. We expect these projects to contribute additional annualized EBITDA of over $65 million by the end of 2025, which we anticipate will nearly double to over $125 million by the end of 2026 when our carbon capture, cogeneration, and other initiatives are fully realized,” concluded Kandris...