AgroFresh Solutions, Inc. (NASDAQ:AGFS) saw a sharp drop in its stock this morning after releasing its Q4 and full 2018 earnings. AGFS is currently seeing losses of -15% and the agriculture stock continues to drop as the day progresses.
AgroFresh Q4 and Full 2018 Earnings
Yesterday, AgroFresh released its Q4 2018 and full year 2018 revenue results to investors. The agriculture company saw its sales increase for the full year, but in Q4, AgroFresh saw a dip in its sales.
In Q4, AgroFresh brought in $53.3 million in net sales, versus the $54.1 million it brought in Q4 2017. This is likely the cause of its sharp drop in stock, as investors might have expected stronger Q4 revenue. Despite the $1.9 million drop in sales in Q4, compared to the previous year, the company saw its net sales increase 9% in all of 2018.
Jordi Ferre, CEO of AgroFresh, states that 2018 was a transitional year for the company and blamed the loss in revenue on this. Ferre explained that the company underwent leadership changes that “refocused” the company to seek cost-efficient and sustainable growth.
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Ferre states that the company’s sales from outside North America now represent around 75% of the company’s revenue. In 2018, AgroFresh sales in Europe represent the largest market, bringing in 40% of the year’s sales. Moving into 2019, the agriculture company will focus its sales out of North America since that’s where its needs lie.
AgroFresh Stock Movement
According to Yahoo Finance, AGFS is trading at $4.12 a share, down -$0.73 (-15.05%). The company saw significant share gains the past 30 days, despite today’s dip. Year-to-date, the agriculture stock is still in the green.
About the Company
AgroFresh is a global innovator and provider of science-based solutions and data-driven technology to enhance the quality and extend the shelf life of produce. The company has been in the industry for 20+ years and revolutionized the global apple industry. Now, the company has moved onto other fruits and supports growers, packers, and retailers with its technology.
Featured Image: Unsplash
