SW Seed Company Reports Financial Results for Q1 Fiscal 2025
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S&W Seed Company Reports Financial Results for Q1 Fiscal 2025
LONGMONT, Colo., Nov. 19, 2024—S&W Seed Company (Nasdaq: SANW) has disclosed its preliminary financial outcomes for the first fiscal quarter ending September 30, 2024.
Key Financial Metrics
| Metric | Q1 FY2025 | Q1 FY2024 | Year-Over-Year Change |
|---|---|---|---|
| Total Revenue | $8.3M | $10.8M | -22.8% |
| Gross Profit Margin | 16.1% | 25.3% | -9.2 percentage points |
| Adjusted EBITDA | ($3.1M) | ($1.7M) | -82.4% |
S&W Seed Company saw its total revenue drop by 22.8% from the same quarter last year, mainly owing to the exclusion of S&W Australia revenues, following the completion of voluntary administration. The company also experienced reduced gross profit margins, reporting a downturn from 25.3% in Q1 2024 to 16.1% in Q1 2025. Meanwhile, adjusted EBITDA showed a further dip to ($3.1M) compared to ($1.7M) in the previous year.
Revenue Performance by Segment
| Segment | Revenue (Q1 FY2025) |
|---|---|
| International Sales | $4.1M |
The company's strategic shift towards its core U.S. operations is expected to bolster future revenue streams, specifically through the expansion of high-margin sorghum solutions.
Operational Highlights
- S&W aimed to finalize the Voluntary Administration process for S&W Australia by the end of the month.
- Post-VA, the focus will shift entirely to high-margin U.S.-based operations, particularly the Double Team sorghum solutions.
- Introduction of new guidance for fiscal 2025 targeting adjusted EBITDA between ($1.9M) and $0.1M for the subsequent three quarters.
Management Comments
Mark Herrmann, CEO of S&W Seed Company, emphasized the company's strategic transition, highlighting the enthusiasm around its Double Team sorghum solutions. Herrmann outlined plans to grow this aspect of operations while also reducing operating expenses to aim for a break-even adjusted EBITDA by the end of fiscal 2025's three remaining quarters.
Forward Guidance
S&W expects fiscal 2025 revenue ranging between $34.5M to $38M, with an anticipated adjusted EBITDA between ($5.0M) to ($3.0M).
Stock Price Movement
Following the earnings release, S&W Seed Company's stock experienced a drop of approximately 3.40%.
These preliminary financial insights underscore a pivotal restructuring phase for S&W Seed Company as it navigates focusing efforts on its core domestic operations and adjusting to new revenue dynamics post-Voluntary Administration.
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