Distributor Inventory OverloadSupply chain disruptions in 2022 led distributors to over-purchase, creating a challenging year-over-year comparison for Aztec insecticide sales.
Product Recall ImpactThe company faced a $12 million revenue reversal due to a product recall of Dacthal, which, combined with an additional $4 million charge to the cost of goods sold, resulted in a significant $16 million hit to gross profit.
Supply Chain ChallengesAn approximate $18 million year-over-year negative impact from the Aztec insecticide was realized, attributed to previous supply chain issues.