AgroFresh Solutions (AGFS) Tops Q2 EPS by 2c

AgroFresh Solutions (NASDAQ: AGFS) reported Q2 EPS of ($0.33), $0.02 better than the analyst estimate of ($0.35). Revenue for the quarter came in at $20 million versus the consensus estimate of $21.19 million.

"I’m pleased with our team’s resolve during the first half of 2020. We provided uninterrupted service to our southern hemisphere customers amid a challenging environment due to the global pandemic, which impacted our flower business as well as caused softness in some key local currencies. The cost optimization initiatives we launched last year helped insulate our business from the pandemic’s broader effects and drove another strong quarter of year-over-year improvement in selling, general and administrative expense, which in turn generated operating leverage and adjusted EBITDA growth during the second quarter of 2020 as compared to the prior year period. For the first half of 2020, adjusted EBITDA margin improved 310 basis points, despite the decline in revenues during our southern hemisphere season due to the aforementioned headwinds," commented Jordi Ferre, Chief Executive Officer. "We are carefully managing the business through this uncertain environment and with the closing of our comprehensive refinancing on July 27, we have reduced our balance sheet leverage by approximately two turns on a pro-forma basis as of June 30, 2020. This transaction returns our business to a position of strength where we have the available capital and flexibility to pursue our diversification and growth initiatives. We are well positioned for the coming northern hemisphere season during the second half of 2020, with the resources in place to provide the necessary products and service to help our customers navigate this dynamic environment and maximize the value of their crops."

For earnings history and earnings-related data on AgroFresh Solutions (AGFS) click here.

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