ArborGen expects lower net debt and higher EBITDA.

The global seedling supplier, ArborGen, has announced that its net debt as of March 31 2024, is anticipated to be 25% to 35% lower than previously guided.

This reduction in net debt is now estimated to be between $14.5 million to $15m, compared to the earlier range of $18.3m to $19.3m.

ArborGen attributed the decrease in net debt to favourable working capital movements, lower nursery and orchard costs, as well as the deferral of some capital expenditure items.

The company also revealed that its adjusted US GAAP EBITDA is expected to be at the higher end of the guidance provided in November 2023, amounting to $11.6m to $12.6m.

ArborGen expressed confidence in its trading performance, noting record sales, pricing, and margins in Brazil, while a solid performance is anticipated in the US.

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