AgroFresh Solutions, Inc., a global AgTech player providing a range of solutions, digital technologies and services to enhance the quality and extend the shelf life of fresh produce, has announced its financial results for the first quarter ended March 31, 2022.
Clint Lewis, Chief Executive Officer, commented: "The first quarter marks the first half of the Southern Hemisphere growing season and while most of the harvest has yet to commence, we are off to a solid start in this quarter. This quarter also shows the benefit of our diversification strategy, leveraging our global footprint and the breadth of our product portfolio to deliver both revenue and EBITDA growth relative to the first quarter of 2021 while managing through adverse weather conditions impacting select Latin American markets such as Brazil and Chile.
Financial Highlights for the First Quarter of 2022
Net sales for the first quarter of 2022 increased 2.3% to $39.9 million, compared to $39.0 million in the first quarter of 2021. Excluding foreign currency translation impacts, which reduced revenue by $1.2 million as compared to the first quarter of 2021, revenue increased 5.5%, primarily driven by leveraging a portfolio of diverse solutions. Each of the Company's diversification categories generated growth in the first quarter. Growth within Fungicides & Disinfectants was driven by market penetration and product expansion in the Middle East. The Other 1-MCP category was supported by Harvista, which experienced strong growth in South Africa, supported by an early harvest and larger crop size. This was partially offset by SmartFresh for Apple declines in the Latin America region due to unfavorable weather events.
Gross profit for the first quarter of 2022 was $28.0 million, compared to $28.7 million in the prior year period. Gross profit margin was 70.1% as compared to 73.5% in the prior year period. The lower gross margin primarily reflects the Company’s strategic transition to a more diversified product portfolio, as well as higher materials costs associated with inflationary pressures.
Research and development costs were $3.1 million in the first quarter of 2022, compared to $3.3 million in the prior year period, due primarily to the timing of projects.
Selling, general and administrative expenses decreased 12.2% to $11.9 million in the first quarter of 2022, as compared to $13.6 million in the prior year period, driven primarily by the timing of expenses.
First quarter 2022 net loss was $3.2 million, compared to net income of $8.2 million in the prior year period. During the first quarter of 2021, the Company recorded $14.4 million of other income which related primarily to the receipt of proceeds from the settlement of a litigation matter.
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AgroFresh Solutions, Inc.:
Tel.: +1 646-277-1263