TOMBALL, TEXAS — An increase in revenues and sharp reduction in adjusted EBITDA losses, underpinned by improvements at every facility, led to a “successful turnaround” in operations at RiceBran Technologies, said Peter Bradley, executive chairman.
RiceBran, which develops and produces nutritional and functional ingredients derived from small and ancient grains for the food, feed, nutraceutical and pet care markets, trimmed its loss in the second quarter ended June 30 to $1.92 million, which compared with a loss of $3.95 million in the same period a year ago. Revenues, meanwhile, increased 28% to $7.57 million from $5.9 million.
In an Aug. 3 conference call with analysts, Mr. Bradley expressed excitement about RiceBran’s evolution into a specialty ingredients business.
“This transition will significantly expand our addressable market and meaningfully increase our margin profile, raising the ceiling on our business and creating significant shareholder value,” he said.
Specifically, Mr. Bradley mentioned a just-signed distribution agreement with AIDP that he said paves the way for RiceBran to increase its sales coverage in the fast-growing health and wellness sector. Based in City of Industry, Calif., AIDP, Inc. is a key supplier of specialty ingredients into the supplement and nutraceutical markets.
Mr. Bradley said RiceBran launched two new products in the second quarter. The first line includes new versions of stabilized rice bran for use in powdered beverages, tablets and capsules. The new line complements RiceBran’s existing line of SRB derivatives for these applications, he said. The second new product line features micronized rice hulls for use as a natural flow agent and emulsifier.
Although RiceBran’s focus has shifted to specialty rice-derived ingredients, Mr. Bradley was equally satisfied with the company’s two milling operations, which he said “continue to evolve as critical elements of our growth strategy.”
“Our focus on operational improvement has provided the platform to further develop these operations into specialty milling businesses,” he said. “At Golden Ridge, we commenced commercial production of SRB and are currently completing installation and new packing capabilities. And at MGI, the facility has commenced milling of specialty barley varieties. As we expand demand through our new sales organization and extend our supply with new product introductions, these operations will play an increasingly important role in our overall growth potential.”