AgroFresh revenues increase by 5% in Second Quarter
Net sales for the second quarter of 2017 were $16 million compared to $18 million in second quarter of 2016, primarily due to seasonal timing differences that can swing revenues between the first and second quarter. Net sales for the first half of 2017 were $49 million, an increase of 5 percent over the first half of 2016.
Operating margins, excluding the impact of inventory step-up amortization in 2016, were relatively stable at 76 percent in the second quarter of 2017 compared to the 78 percent recorded in the second quarter of 2016. The decrease was driven by the impact of our fixed costs on lower sales in the quarter. First half 2017 operating margins were 80 percent, in-line with the same period in 2016.
Jordi Ferre, Chief Executive Officer, commented, "We made solid progress in the second quarter to bring the first half of the year, our Southern Hemisphere season, to a successful conclusion. We continue to grow our SmartFresh revenues, primarily through our customers' increasing adoption of the SmartFresh Quality System."
"Harvista also continues to generate strong growth. Margins remain in-line with historical averages as we maintain pricing discipline. And, while costs were also down from a year ago, our transition off the Dow platform, implementation of a new ERP system, and continued efficiency and productivity improvements are expected to show additional progress over the balance of the year. The balance sheet remains strong primarily due to the strong cash flow characteristics of our asset-light business model."
“The second quarter was also a quarter of significant progress along a number of strategic fronts. Most prominently, our victory in the MirTech suit confirmed the strength of our intellectual property portfolio. We continue to pursue remedies associated with this decision. In addition, we added fungicides to the SmartFresh™ Quality System, further adding to our industry-leading value proposition.
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