RiceBran Technologies revenues increased 61%Christian Fernsby ▼ | March 25, 2020
RiceBran Technologies announced the company's financial results for the quarter and year ended December 31, 2019.
RiceBran Technologies Revenue for the Company's stabilized rice bran business grew modestly
Topics: RiceBran Technologies
Year-over-year growth was driven by a full year of revenue from Golden Ridge, acquired in November 2018, together with three quarters of revenue from MGI Grain, acquired in early April 2019.
Revenue for the Company's stabilized rice bran business grew modestly, with annual growth impacted by lower than expected results in the fourth quarter.
Our gross profit margin fell to a negative 4% in 2019, down from a positive 20% in 2018.
The year-over-year decline in profitability was largely due to losses from Golden Ridge.
Gross profit margins from our stabilized rice bran operations also fell modestly in 2019 due to a shift in mix away from our higher margin products.
This dynamic was stronger in the second half of the year.
SG&A expenses increased to $13.7 million from $11.2 million, due to an expansion of sales, operational, and executive staff, increased expenses for outside consulting services associated with audit, accounting, and legal expenses for a variety of matters including the purchase of MGI Grain.
Losses from operations were $(13.7) million compared to losses of $(8.1) million in 2018.
Adjusted EBITDA (non-GAAP) losses, which excludes share-based compensation and acquisition related expenses, were $(10.8) million versus adjusted EBITDA (non-GAAP) losses of $(6.4) million in 2018.
Cash and cash equivalents of $8.4 million increased from $7.2 million last year, while short-term borrowing was $1.9 million, compared to $30,000 in the prior year.
There were two sequential improvements in the fourth quarter of 2019's results which included a near doubling of revenue from Golden Ridge from third quarter levels, the reduction in EBITDA and adjusted EBITDA (non-GAAP) losses due to stronger operations, and the initial impact of our targeted efforts to reduce costs and maximize efficiencies at all levels of operations. ■