Aceto agchem sales surge and profits plunge
The agrochemical sales of US company Aceto (Lake Success, New York) rose by 89.8% to $6.5 million in the three months ended September 30th 2010. However, gross profit for its first quarter of fiscal 2011 plunged by 48.7% to $222,000. The gross margin for the quarter dropped from 12.6% in fiscal 2010 to 3.4% in fiscal 2011. The higher sales and lower profits were due to the introduction of the herbicide, glyphosate, in the third quarter of fiscal 2010. The gross margin was lower than expected due to the “difficult and crowded market conditions” for glyphosate, Aceto points out. Agrochemicals accounted for 7.4% of Aceto’s total sales and 1.7% of gross profit during the quarter.