For the third quarter of fiscal year 2015 ended March 31, 2015, California’s S&W Seeds reported record revenue of $30.5 million compared to $8.1 million in the comparable period of the prior year. The increase in revenue was primarily attributable to sales under the company’s distribution and production agreements with DuPont Pioneer.
Gross margins during the third quarter of fiscal 2015 were 23.3 percent compared to gross margins of 20.3 percent in the third quarter of fiscal 2014 and adjusted gross margins of 16.2 percent in the second quarter of fiscal 2015. The increase in gross profit margins resulted from higher margins from the sale of dormant alfalfa seed lines acquired from DuPont Pioneer and the benefits of the company’s ongoing optimization program.
While there will continue to be quarterly fluctuations in gross profit margins based on product sales mix, the company continues to anticipate strong gross margins as a result of a number of initiatives it is deploying, as well as pricing improvement in the alfalfa seed market, especially within certain key markets.
“Our hard work and dedication to create the world’s largest and most diversified alfalfa seed company is beginning to produce the results we expected when we began implementing our strategy,” says Mark Grewal, president and chief executive officer of S&W Seed Company.
A full news release is available at: http://swseedco.com/press-release/sw-announces-record-results-for-the-third-quarter-of-fiscal-year-2015/