AgroFresh Solutions, Inc., a global player in produce freshness solutions, today announced its financial results for the second quarter ended June 30, 2021.
Clint Lewis, Chief Executive Officer commented, “We made further progress with our diversification strategy in the second quarter, generating 36% growth over the prior year period in our product solution categories focused on diversification — Other 1-MCP Solutions, Fungicides & Disinfectants, Coatings, and Other. This performance built upon the growth we generated in the first quarter and was led by our EMEA region in particular. We had a strong finish to our first half Southern Hemisphere season, producing consolidated 13% constant currency net sales growth and a 32% increase in adjusted EBITDA. Looking ahead to the second half Northern Hemisphere season, we are in a great position and anticipate generating net sales and adjusted EBITDA growth."
Mr. Lewis added, "I continue to be energized by our team's customer centric focus. With the new leadership we announced today, I'm confident that we have the elements in place to strengthen our core competencies, while adding additional capabilities to further our diversification strategy and propel the post-harvest industry forward with future innovations. We are building a new mindset and establishing new disciplines that we believe will lead to consistent profitable long-term growth.”
Financial Highlights for the Second Quarter of 2021
Net sales for the second quarter of 2021 increased 9.7%, to $21.9 million, compared to $20.0 million in the second quarter of 2020. Excluding foreign currency translation impacts, which increased revenue by $1.0 million as compared to the second quarter of 2020, revenue increased 4.7%.
Gross profit for the second quarter was $14.8 million, compared to $13.5 million in the prior year period. Gross profit margin was essentially flat versus the prior year at 67.6%.
Research and development costs were $3.5 million in the second quarter of 2021, compared to $2.9 million in the prior year period. This increase was driven primarily by the timing of projects.
Financial Highlights for the First Half of 2021
Financial results for the first half of 2021 largely reflect the completion and performance of the business for the Southern hemisphere season. Net sales for the first half of 2021 were $60.9 million, an increase of 14.9% versus the prior year period. The impacts of foreign currency translation increased revenue by $1.1 million for the first half of 2021; excluding this impact, revenue increased approximately 12.8%. The net sales increase was primarily the result of strength in
Gross profit for the first half increased 14.4% to $43.5 million, as compared to $38.0 million in the prior year period. Gross profit margin was stable versus the prior year period at 71.4% for the year-to-date period.
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For more information:
Jeff Sonnek 
AgroFresh Solutions, Inc.
Tel.: +1 646-277-1263
Email: [email protected]
