AgroFresh Solutions Reports Results for First Quarter of 2021

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• First quarter net sales increased 18.1% to $39.0 million (17.6% on a constant currency basis) versus the prior year period.
• Net income of $8.2 million for the first quarter of 2021, as compared to net loss of $3.8 million for the first quarter of 2020.
• Adjusted EBITDA1 increased 26.3% to $14.2 million for the first quarter of 2021, and adjusted EBITDA margin increased 240 basis points to 36.3% versus the first quarter of 2020.
• Reduced debt by $9.1 million and redeemed $5.3 million of preferred equity with litigation proceeds, reducing future interest expense and dividend payments.

PHILADELPHIA, May 13, 2021 (GLOBE NEWSWIRE) — AgroFresh Solutions, Inc. (“AgroFresh” or the “Company”) (Nasdaq: AGFS), a global leader in produce freshness solutions, today announced its financial results for the first quarter ended March 31, 2021.

“I am thrilled to join AgroFresh as its new CEO at this important time in the Company’s journey. AgroFresh is a trusted brand in the post-harvest industry known for our commitment to providing quality products and our experienced sales and technical teams delivering a high-touch service model that customers have come to rely on,” commented Clint Lewis, Chief Executive Officer. “While it is still early in my onboarding process, I am confident in the Company’s strategy to drive growth through diversification. I am energized by the team’s customer focus and believe that we can chart a path toward consistent profitable top-line growth. I want to thank our global AgroFresh team for their resiliency as we continue to navigate the impacts of the pandemic, variances in global production and the reality of competition. I look forward to working with the rest of the team to advance our success.”

Graham Miao, Chief Financial Officer added, “Our Southern Hemisphere season is off to a strong start in the first quarter with a return to a more normal harvest in Latin America versus last year, generating revenue growth of 17.6% on a constant currency basis and adjusted EBITDA growth of 26.3%. Our strategies to diversify our business through both crops and geography are being supported by our global registration progress and evidence of this is visible in our diversification strategies (outside of the SmartFresh apple business), which account for approximately 40% of total trailing twelve month revenue ended March 31, 2021 and grew 14% during the same period. Growth platforms such as Harvista are also realizing the benefits from broader market access — for example, our Harvista business nearly doubled in the first quarter relative to the prior year period due to recent launches and expanded registrations in Brazil, Australia, New Zealand and South Africa, as well as labor challenges that our product was able to help mitigate. We are excited about the early customer adoption of our new innovations in products such as VitaFresh™ Botanicals and our FreshCloud digital platform and we aim to build momentum in the marketplace with additional customer placements.”

Financial Highlights for the First Quarter of 2021

Net sales for the first quarter of 2021 increased 18.1%, to $39.0 million, compared to $33.0 million in the first quarter of 2020. Excluding foreign currency translation impacts, which increased revenue by $0.1 million as compared to the first quarter of 2020, revenue increased 17.6%.   The net sales increase was the result of growth in the Company’s product solution categories, which include SmartFresh™ for apples, SmartFresh™ diversification for other crops, Harvista™ and EthylBloc, as well as our fungicides and disinfectants and coatings categories.

1Adjusted EBITDA is a non-GAAP financial measure. Please see the information under “Non-GAAP Financial Measures” below for a description of Adjusted EBITDA and the table at the end of this press release for a…