In This Article:
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Preliminary Revenue: $8.3 million for Q1, down from $10.8 million in the prior year.
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Sorghum Sales: $550,000 in Q1, compared to $2.3 million last year.
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America Forage Sales: $3.4 million in Q1, up from $2.4 million last year.
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International X US Forage Sales: $4.1 million in Q1, down from $5.9 million last year.
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Service Revenue: Estimated $200,000, primarily tied to VBO.
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Gross Profit Margin: 16% for Q1, compared to 25% last year.
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Operating Expenses: $5.6 million for Q1, compared to $5.7 million last year.
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Adjusted EBITDA: Negative $3.1 million for Q1, compared to negative $1.7 million last year.
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Fiscal 2025 Revenue Guidance: $34.5 million to $38 million.
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Fiscal 2025 Gross Margin Guidance: 33% to 36%.
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Fiscal 2025 Adjusted EBITDA Guidance: Negative $5 million to negative $3 million.
Release Date: November 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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S&W Seed Co (NASDAQ:SANW) reported solid revenue growth and increasing gross margins in its US-based operations, particularly in its Sorghum trade portfolio.
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The Double Team Sorghum trait saw significant growth, with a 68% increase in sales from fiscal 2023 to 2024, contributing gross margins of approximately 70%.
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The company is focusing on high-growth, high-margin US operations, with expectations for Double Team to be planted on 12-14% of US grain sorghum acres next year.
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S&W Seed Co (NASDAQ:SANW) has made significant reductions in operating expenses, aligning its business plan with expenses to drive towards profitability.
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The company is making progress with its global partners, completing chemistry trials and licensing agreements in key global markets, which could expand its reach and add value.
Negative Points
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S&W Seed Co (NASDAQ:SANW) faced ongoing challenges in its Australia-based operations, with a 33% decline in revenue due to market conditions and strategic challenges.
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The company entered a voluntary administration process for its Australian subsidiary, indicating financial difficulties and uncertainty in that region.
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Preliminary Q1 revenue was down from the previous year, with a decrease from $10.8 million to $8.3 million, reflecting challenges in international operations.
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Gross profit margin for Q1 decreased to 16% from 25% in the previous year, largely due to the absence of sales in Saudi Arabia.
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The company expects adjusted EBITDA for the year to be negative, indicating ongoing financial challenges and the need for further cost management.