Ag Chemicals Help Increase ACETO Corp. Q3 Revenues

Crop protection products helped push ACETO Corp., Performance Chemical division to a nearly 9% increase in the third quarter of fiscal 2016 compared with the previous year.

ACETO markets, sales, and distributes crop protection, human health and pharmaceutical products internationally.

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“Performance Chemicals, benefiting from seasonally strong agricultural sales, also contributed to the quarter’s sales growth. Gross profit for the quarter increased by 4.6% driven by growth in both the Pharmaceutical Ingredients and Performance Chemicals segments partially offset by a modest decrease in the Human Health segment,” said Sal Guccione, Chief Executive Officer of ACETO.

Third Quarter Financial Review

Net sales for the third quarter of fiscal 2016 were $157.9 million, an increase of 8.3% from $145.8 million reported for the third quarter of fiscal 2015. Total Company gross profit was $38.3 million, an increase of 4.6%, compared to $36.6 million for the third quarter of fiscal 2015. Gross margin for the third quarter was 24.2% compared to 25.1% for the prior year period.

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The Performance Chemicals segment sales were $53.3 million, an increase of 8.9%, compared to $48.9 million for the third quarter of fiscal 2015, due primarily to higher agricultural protection products sales. Gross profit was $10.5 million, an increase of 5.5%, compared to $10.0 million for the third quarter of fiscal 2015. Gross margin was 19.7% for the third quarter compared to 20.4% in the prior year period.  Both specialty chemicals and agricultural protection products contributed to the increased gross profit compared to last year. The decline in the gross margin was due to product mix.

More on ACETO Corp. earnings.

 

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