S&W Seed grows losses, trims sales in second quarter
LONGMONT — S&W Seed Co. (Nasdaq: SANW) saw its year-over-year sales and earnings performance wilt in the second quarter of the 2024 fiscal year.
Revenue for the most-recent period was $10.9 million, a 16% decrease compared with the second quarter of fiscal 2023.
“The quarter-over-quarter decrease in revenue was primarily attributable to a $3.5 million decrease in (Middle East North Africa) region sales caused by management’s decision to not discount non-dormant alfalfa as cheaper European seed disrupted the market and government incentives to produce wheat in Saudi Arabia reduced demand, a $1.1 million decrease in Australia pasture products and non-dormant alfalfa, and a $0.3 million decrease in Asia sales due to inventory carryover into fiscal 2024 leading to lost sales,” S&W said this week in its earnings report.
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The company posted a net loss of almost $6.5 million in the second quarter of its 2024 fiscal year, compared with a net loss of just less than $6 million in the same period last year.
“While we are achieving strong adoption in our high margin sorghum trait technology solutions, we are closely monitoring the dynamics from the expanding conflicts in the Middle East North Africa, or MENA, region on our international alfalfa product operations,” S&W CEO Mark Herrmann,” said in a prepared statement. “The war in Ukraine, the Sudan Civil War, and expanding geopolitical disruptions have caused the transition of many alfalfa growers in the MENA region to plant wheat this upcoming season, and have caused disruptions to normal farming operations and seed distribution channels. We have already implemented a series of cost saving initiatives within our international operations, as well as production optimization initiatives, to mitigate any potential revenue impact. We will remain proactive to optimize the cost structure of the entire organization to support our near-term goal of profitability.”
