Wayne Pinsent's questions to AMERICAN VANGUARD (AVD) leadership • Q2 2025
Question
Wayne Pinsent of Gabelli Funds asked about the sustainability of the current gross margin levels, the company's comfort with current inventory levels and future reduction targets, and if there was any progress on finding strategic value for the deemphasized SIMPAS technology assets.
Answer
CEO Douglas Kaye responded that while Q2 benefited from a favorable product mix and manufacturing efficiencies, the current margin level is the target they are striving for long-term. Regarding inventory, he noted the goal is to improve inventory turns from the current 1.75 to closer to 2.0. On SIMPAS, he confirmed a team is actively pursuing strategic options, but there is nothing substantive to report publicly at this time.