American Vanguard reports Q3 adjusted EBITDA $1.8M vs. $11.4M last year

Reports Q3 revenue $130.7M when excluding Dacthal product recall impact, consensus $139.2M. The company said, “While we continue to manage through macroeconomic headwinds, we are seeing pockets of strength. For example, our non-crop business grew 17% as compared to the year ago period, and our green solutions portfolio grew 18% as compared to the year ago period. The growth in these areas was offset by pressure from generics, but the single biggest factor was a significant drop in Aztec sales year over year. Sales in 2023 were unusually high as a result of a previous supply shortage. As we transform the business, we are incurring one-time charges associated with positioning American Vanguard (AVD) for longer-term growth. During the quarter we incurred a $8.1 million transformation charge. Additionally, during the quarter we recorded a $16.2 million charge associated with the collection and disposal of Dacthal. The Company benefitted from this profitable product for many years, and we are now taking the necessary steps to safely recall and dispose of it.”