American Vanguard Corporation · NYSE:AVD

American Vanguard — Q1 2025 Earnings Presentation

16 slides from American Vanguard's earnings presentation, Jun 6, 2025

  1. Slide 1: Q1 2025 Earnings

    AMERICAN VANGUARD ¢ Q1 2025 Earnings June 2025

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement During this presentation, the Company may discuss forward-looking information. Except for the historical information contained in this release, all forward-looking statements are estimates by the Company’s management and are subject to various risks and uncertainties that may c

  3. Slide 3: Executive Summary - Key Messages

    Executive Summary - Key Messages  Underlying demand for our products has remained well supported. This has not translated into better sales performance due to customer destocking.  AVD continues to realize the benefits of its commercial and operational improvements.  Decreased operating expenses

  4. Slide 4: Why do we expect a strong 2H? Customer Inventories have been drawn down

    Why do we expect a strong 2H? Customer Inventories have been drawn down  Industry data indicates that American Vanguard products continue to be applied in the field, yet customers destocking led to sales being down year over year.  Customer destocking accounts for a large portion of the weakness i

  5. Slide 5: Q1'25 Highlights

    AMERICAN VANGUARD Q1’25 Highlights

  6. Slide 6: Q1 2025 Revenue Results

    Q1 2025 Revenue Results  The reduction in revenue was driven by weakness in the Mexican agave market and first quarter 2024 results including a non-recurring item  U.S. Crop sales down 18% year-over-year –  The decline was driven by the absence of an herbicide product that was voluntarily cancele

  7. Slide 7: Q1 2025 Financial Results

    Q1 2025 Financial Results  Declines in revenue were impacted by weakness in Mexico, customer destocking and the cancellation of a herbicide product.  Adj. EBITDA was negatively effected by the 14% decline in revenue, as well as the impact of the implementation of incentive programs, which were cre

  8. Slide 8: Q1'25 Operating Expenses

    Q1’25 Operating Expenses  The Company continues to be focused on cost-cutting initiatives. On an non-GAAP, or like-for-like basis, total operating expenses declined by $5.0 million or 14% this quarter compared to the year ago period.  In the quarter, the company extracted $2.2 million of selling a

  9. Slide 9: Q1'25 Net Working Capital

    Q1’25 Net Working Capital  Implementing a SIOP (sales, inventory and operations planning) process – to better utilize data to anticipate and better manage around customer buying patterns  Hiring a dedicated purchasing and procurement team – focusing, among other things, on managing and optimizing

  10. Slide 10: Transformation Acceleration

    Transformation Acceleration 10

  11. Slide 11: Transformation Initiatives (Update)

    Transformation Initiatives (Update)  Operating Expenses declined $5 million as the Company cut $2.2 million of selling and marketing expenses and $2.1 million of R&D expenses. G&A costs declined $700,000 in the quarter as the Company continues to extract additional costs out of the business.  The

  12. Slide 12: Branded, Diversified Products Support Market Resilience

    Branded, Diversified Products Support Market Resilience Extensive product offering coupled with numerous applications… AVD’s Top 10 Products (2024) Metam Phorate / Aztec Counter Naled Bromacil Mocap Bidrin Impact Smartchoice Sodium Thimet  Weed Control  Pest Control  Mosquito  Nematode  Pest Co

  13. Slide 13: Appendix

    AMERICAN VANGUARD Appendix

  14. Slide 14: FY 2025 Guidance

    FY 2025 Guidance  Demand for the remainder of the year is expected to remain strong, as the headwinds of customer pull through in Q4 2024 have subsided.  EBITDA is expected to benefit from the continued realization of commercial and operational improvements.  Declines in operating expenses should

  15. Slide 15: Q1 2025 Revenue ($000's)

    Q1 2025 Revenue Overall revenue Q1 2025 $115.8M vs $137.6M in 2024 (down -16%), International 37% of total in Q1 2025 vs 36% of total in 2024 Net Sales, Q1 2025 vs 2024 $69.8 $56.8 $50.1 $43.0 ($000’s) $17.8 $15.6 International U.S. Non-Crop U.S. Crop Q1 2025 Q1 2024 15

  16. Slide 16: Q1 2025 Gross Profit

    Q1 2025 Gross Profit ($000’s) Q1 2025 Q1 2024 Change** U.S Crop $57.2 $69.8 (18%) U.S. Non-Crop $15.6 $17.8 (12%) Total U.S. $72.7 $87.5 (17%) International $43.0 $50.1 (14%) Total Net Revenue $115.8 $135.1 (14%) Total Cost of Sales ($85.6) ($92.7) (8%) Total Gross Profit $30.2 $42.4 (29%) Total Gro

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