Port-based Aceto Corp. profits down 46 percent in quarter

Stephen Romano
Port Washington-based Aceto Corp.

A Port Washington-based drug and chemical manufacturer reported that its profit for the third fiscal quarter was 46 percent lower than last year’s mark due to competition with rival producers and launch delays.

Aceto Corp., a national company that operates out of Port Washington on Tri Harbor Court, said its January to March profit was $5.6 million, down from last year’s $10.4 million.

The company’s net sales rose 20.4 percent, increasing from $157.9 million to $190.1 million, and its gross profit jumped 10.5 percent, according to a press release.

A larger product portfolio due to a recent acquisition caused the increase in sales, Aceto Corp. executives said.

“The third quarter represents our first operating quarter with full inclusion of the recently-acquired Citron and Lucid products,” Sal Guccione, CEO of Aceto, said. “The expansion of our product portfolio also brought us one step further along in our strategic transition towards human health with our human health and pharma ingredients business segments collectively accounting for over 75 percent of total sales for the first time ever.”

Aceto Corp.’s non-GAAP adjusted net income during the third quarter was 13.6 million — an 8.7 percent increase from last year, and its non-GAAP adjusted earnings per share decreased 7 percent, according to its financial report.

“During the quarter, we resolved the API supply disruptions that had previously caused back orders on two rising products and we launched four rising products for a total of nine products year-to-date,” Guccione said. “We also launched two Citron products.”

Guccione said he expects the company to end the 2017 fiscal year in the “low-to-mid teens percentage range” for sales growth.

“Despite this fiscal year’s operational challenges and difficult industry conditions, we are encouraged by the progress we have made in working through these challenges, and expect to see sequential growth by the legacy rising products in the fiscal fourth quarter,” he said. “Our resolve in returning to a steady annual growth state is unwavering.”

TAGGED: port washignton
Share this Article