Agribusiness  November 11, 2021

S&W Seed raised rates, revenue

LONGMONT — S&W Seed Co. (Nasdaq: SANW) said in an earnings release that core revenue increased 27%  in its first fiscal 2022 quarter ended Sept. 30, with the company also raising prices.

The earnings release noted that “core revenue” is a non-GAAP — generally accepted accounting principles — metric that the seed developer uses to compare fiscal periods. It excludes revenue attributable to the termination of a seed licensing agreement in 2019.

In its first quarter this year, core revenue equaled GAAP revenue of $15.5 million. Year-over-year, that marks a 27% increase in core revenue and an 11.5% increase in GAAP revenue.

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Most core-revenue growth happened overseas, the company said.

S&W shaved losses in its most recent quarter to $6.4 million, from a $7.2 million loss year-over-year.

The company in September for all of 2021 also reported higher revenue and a lower loss.

Raised rates

President and CEO Mark Wong said S&W raised prices on most of its products and modified “the terms and conditions of standard customer contracts to address the volatility and increased costs of freight and transportation.”

GAAP gross margins increased in the quarter to about 20% from about 13%.

“Improved logistical and supply chain management are expected to show continued improvement in operating results going forward,” Wong added.

S&W was able to book $5 million in revenue in its first quarter that hadn’t been realized the prior quarter.

The company said it expects fiscal 2022 core and total revenue of $80 million to $85 million, up about 15% to 20% compared with fiscal 2021’s roughly $70 million.

S&W traded recently at a $142 million market cap.

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