Alto Ingredients Reports 21% Decline in Net Sales and Increased Net Loss for Fiscal Year 2024

Alto Ingredients, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with consolidated net sales of $965.3 million, down 21% from $1.2 billion in 2023. The company also experienced a net loss attributable to common stockholders of $60.3 million, compared to a loss of $29.3 million in the previous year. This downturn was primarily driven by a 21% decrease in the average sales price per gallon of alcohol, which fell to $1.95 from $2.47, largely due to lower renewable fuel prices influenced by declining oil and gasoline prices.

In terms of operational changes, Alto Ingredients undertook several strategic initiatives during the year. The company cold-idled its Magic Valley facility at the end of 2024 to minimize financial losses stemming from unfavorable market conditions. This facility had previously been hot-idled in early 2024 for upgrades but faced challenges in achieving profitability. Additionally, the company acquired Kodiak Carbonic, a beverage-grade liquid CO2 processor, for $7.6 million, which is expected to enhance its operational efficiency and profitability. The integration of this facility is anticipated to improve coordination with the Columbia plant and generate cost savings.

Alto Ingredients also reported a 1% increase in total alcohol gallons sold, reaching 386 million gallons, driven by a 19% increase in specialty alcohol sales. However, the volume of essential ingredients sold decreased by 7% to 1.4 million tons, reflecting lower alcohol production volumes. The company’s employee headcount was reduced by 16% as part of cost-saving measures, which are expected to yield nearly $8 million in annual savings. As of December 31, 2024, the company had approximately 393 full-time employees.

Looking ahead, Alto Ingredients expressed optimism for 2025, citing improvements in production efficiency at its Pekin Campus and the potential for increased exports of certified renewable fuel to European markets. The company is also focused on advancing its carbon capture and storage project, which is expected to provide significant financial and environmental benefits. However, the approval process for this project is anticipated to take at least two years, and the company is actively working to secure necessary financing and community support. Overall, while the company faced challenges in 2024, it is positioning itself for potential recovery and growth in the coming year.