Curious about American Vanguard net worth and its financial position in 2024?
At Ando Money, I’m here to provide you with insights into the company’s revenue breakdown and key financial factors influencing its performance.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | American Vanguard |
| Full Name | American Vanguard Corporation and Subsidiaries |
| Industry | Chemicals (Agricultural and non-crop) |
| Traded as | NYSE: AVD |
| ISIN | N/A |
| Founded | 1969 |
| Founders | N/A |
| Country/Territory | United States |
| Headquarters | Newport Beach, California |
| Chief Executive Officer | Timothy Donnelly (Acting) |
| Number of Employees | N/A |
| Market Cap | $0.15 Billion (as of Sept 2024) |
| Total Assets | $807.5 million |
| Total Equity | $353.2 million |
| Revenue (Q2 2024) | $128.2 million |
| Net Income (Q2 2024) | $(11.7) million |
What is the Net Worth/Market Cap of American Vanguard in 2024?
As of September 2024, American Vanguard‘s market cap stands at $0.15 billion, making it the world’s 8,216th most valuable company.
While the company has seen fluctuations in its financial performance, its standing is significant in the chemicals sector.
Compared to larger industry competitors, American Vanguard may not top the list, but it still holds a crucial position in the market.
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- FMC Corporation
- Corteva Agriscience
- Bayer CropScience
- Syngenta AG
- BASF SE
- Dow Chemical
- Nufarm Limited
- Adama Ltd.
- Albaugh LLC
- Valent USA
To explore the most successful companies in various sectors, check out our detailed list of the wealthiest businesses.
Financial Performance Overview
Factors Influencing the Firm’s Revenue Growth
The firm’s revenue growth is influenced by several key factors, including market demand for its agricultural and non-crop products.
In Q2 2024, revenue hit $128.2 million, a slight drop from the previous year. However, American Vanguard strategically increased sales in its domestic non-crop business, contributing to overall stability in the first half of the year.
While international sales faced challenges, robust demand in Central America played a role in sustaining revenue.
Breakdown of Revenue by Segment and Geography
A closer look reveals that U.S. Crop Sales for Q2 2024 amounted to $52.3 million, a 7% decline from the previous year. However, U.S. Non-Crop Sales experienced a 13% increase, reaching $19 million.
International sales recorded a decrease of 5%, ending at $56.9 million. Overall, the U.S. segment contributed positively, while international fluctuations balanced the revenue.
The Role of Product Lines in Financial Performance
The suspension of “Dacthal,” an agricultural product regulated by the EPA, had a noticeable impact on revenue. American Vanguard voluntarily stopped sales of Dacthal earlier in 2024, leading to its removal from sales forecasts.
Despite this, other product lines, especially within the non-crop sector, saw strong demand and partly offset the revenue drop.
Business Transformation and Cost-Reduction Initiatives
The company has embarked on a transformation journey to optimize costs and improve its financial outlook. A 4% workforce reduction was implemented to streamline operations.
Furthermore, multiple initiatives, such as inventory management and a push to maximize cash generation, were launched. These measures aim to support the company’s goal to enhance profitability and revenue efficiency.
Strategic Financial Management and Adjusted EBITDA Goals
American Vanguard’s financial management strategies are aligned with its long-term vision.
The company’s amended credit facility, which eases EBITDA-based covenants until Q3 2025, has expanded borrowing capacity.
With an adjusted EBITDA target of $40-$50 million for the full year 2024, down from an initial estimate of $60-$70 million, the firm is focused on enhancing liquidity and operational efficiency.
Impact of Non-Recurring Costs on Profitability
Non-recurring expenses significantly influenced the financial performance in 2024. Severance payments to the former CEO, transformation costs, and other one-time charges led to a lower net income.
However, these strategic moves are expected to create a leaner operation, contributing positively to American Vanguard’s future financial health.
Financial Overview: Revenue, Gross Profit, and Margins
In Q2 2024, American Vanguard’s gross profit stood at $37.8 million with a 29% gross margin, slightly down from the 32% margin in 2023.
The overall six-month performance showed steady growth, with revenue climbing to $263.4 million, up from $257.7 million in the first half of 2023.
Although cost of sales increased by 1% in Q2 2024, the firm continues to pursue cost-saving measures.
Operational Efficiency and Supply Chain Management
To enhance operational efficiency, American Vanguard has focused on manufacturing optimization and SKU rationalization.
The company has also aimed to manage its accounts receivable/payable cycle more effectively to improve liquidity and cash flow.
Financial Health and Liquidity Management
The company has been proactive in managing its financial health. As of June 30, 2024, cash and cash equivalents were at $17.9 million, marking an increase from $11.4 million at the end of 2023.
These actions, alongside improved credit terms, are designed to stabilize the company’s liquidity and borrowing power.
Future Revenue Projections and Market Outlook
American Vanguard revised its 2024 revenue forecast downward, expecting net sales to be down 2%-to-flat at $565-$580 million.
Given stable market conditions and expected demand, the firm is optimistic about maintaining its core revenue streams and achieving strategic growth in the long term.
FAQs about American Vanguard
What are the Key Business Areas of American Vanguard?
The company operates primarily in agricultural and non-crop chemicals, with significant sales in U.S. crop and non-crop markets and international regions.
How Did the Dacthal Suspension Impact Revenue?
The EPA’s emergency suspension of Dacthal affected the sales forecasts for 2024. However, the company had already ceased Dacthal sales earlier in the year.
What Is American Vanguard’s Adjusted EBITDA Target for 2024?
The firm has set a revised target of $40-$50 million in adjusted EBITDA for 2024, reflecting efforts to improve financial performance.
How Is American Vanguard Managing Costs and Efficiency?
Through workforce reductions, inventory management, and operational streamlining, the company aims to enhance financial efficiency and reduce expenses.
What Is the Gross Margin of American Vanguard in Q2 2024?
The gross margin for Q2 2024 stood at 29%, slightly down from 32% in the same quarter of 2023.
Conclusion
American Vanguard’s financial journey reflects a mix of challenges and strategic shifts.
If you have any thoughts on this analysis or want to learn more, feel free to leave a comment or explore more content on Ando Money.
