S&W Seed Company reports lower revenue in fiscal 2018; shares slip

S&W Seed Company (NASDAQ:SANW) reported on Thursday lower revenue for fiscal 2018 as tighter water regulations in Saudi Arabia affected alfalfa seed revenues.

For the fiscal year ending on June 30, 2018, S&W reported revenue of US$64.1mln, compared to revenue of US$75.4mln in fiscal 2017.

“The decrease was largely attributable to decreased shipments to Saudi Arabia as a result of water use regulations in the country,” the company said in a statement.

Shares of the company were down 1.6% to US$3 in Thursday’s premarket, having closed on Wednesday at US$3.05.

For fiscal 2018, revenue from Saudi Arabia declined sharply to US$1.5mln compared to US$12.1mln in fiscal 2017, and US$26mln in fiscal 2016. Revenue in the United States, S&W’s largest market, was US$41.7mln in fiscal 2018, slightly up when compared to US$41.5mln in fiscal 2017.

The company reported a net loss for fiscal 2018 of US$4.7mln, or $0.21 per basic and diluted share, compared to a net loss of US$11.8mln, or $0.67 per basic and diluted share, in fiscal 2017.

S&W is a global leader in alfalfa seed, with significant research and development, production and distribution capabilities.

Its capabilities span the world’s alfalfa seed production regions, with operations in the western United States, including the San Joaquin and Imperial Valleys of California, Australia, and Canada. S&W sells its seed products in more than 30 countries around the world.

S&W Seed Company is a global agricultural company based in Sacramento, California.

Story by ProactiveInvestors