REX American Resources Corporation reported a decline in financial performance for the fiscal year ending January 31, 2025, with net sales and revenue totaling $642.5 million, down from $833.4 million in the previous year. The company's cost of sales also decreased to $551.0 million from $735.2 million, resulting in a gross profit of $91.5 million, compared to $98.2 million in fiscal 2024. Net income attributable to REX common shareholders was $58.2 million, or $3.30 per share, a slight decrease from $60.9 million, or $3.49 per share, in the prior year.
The financial results reflect significant changes compared to the previous fiscal period, particularly in revenue generation, which saw a decrease of approximately 23% year-over-year. The decline in revenue was attributed to lower sales volumes and market conditions affecting the ethanol and by-products segment. The company reported a decrease in sales of ethanol, which fell to $496.4 million from $635.4 million, while sales of dried distillers grains and distillers corn oil also saw declines.
In terms of strategic developments, REX American Resources continued to focus on its core ethanol production business, with no major acquisitions reported during the fiscal year. The company maintained its investment in Big River Resources, LLC, which operates four ethanol manufacturing facilities and reported net sales of $1.02 billion for the year ending December 31, 2024. REX's equity in income from Big River was approximately $9.4 million, down from $13.9 million in the previous year, reflecting the overall market challenges faced by the ethanol industry.
Operationally, REX American Resources reported a decrease in its employee headcount, which stood at 17,195 shares outstanding as of January 31, 2025, compared to 17,504 shares in the previous year. The company also experienced fluctuations in its inventory levels, with total inventory increasing to $31.7 million from $27.0 million, primarily due to higher raw material costs. The company’s cash and cash equivalents decreased to $196.3 million from $223.4 million, indicating a tighter liquidity position.
Looking ahead, REX American Resources expressed cautious optimism regarding its operational outlook, emphasizing its commitment to improving efficiency and managing costs in response to market volatility. The company plans to continue focusing on its core ethanol production while exploring opportunities for growth in related sectors. The management remains vigilant about market conditions and is prepared to adapt its strategies to enhance shareholder value in the coming fiscal year.
About REX AMERICAN RESOURCES Corp
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