CERES GLOBAL AG CORP. REPORTS SECOND-BEST SIX-MONTH START IN COMPANY HISTORY
Highlights for the quarter ended
(Comparisons to the quarter ended
- Gross profit for the quarter was
$7.9 million , the second-best second quarter in the Corporation's history, up from$6.7 million in the previous year. - Income from operations was
$3.7 million , increasing 280.4% from 976 thousand in the prior year. - Net income for the quarter was
$2.7 million , up$3.9 million compared to the previous year. - On
February 12, 2024 , the Corporation announced an exclusive agreement with Grupo Trimex ("Trimex"),Mexico's largest flour miller, to collaboratively develop and execute regenerative agriculture initiatives for hard red spring wheat grown inCanada andthe United States that is destined forMexico .
CEO Commentary
"Building on the strong start to the fiscal year last quarter, we continued to focus on our fundamental strategy of maximizing our network of assets and finding creative, capital-efficient methods of expanding our farmer-direct origination," commented
"Our joint ventures at
1 Adjusted net income is a non-GAAP financial measure. Please refer to "Non-IFRS Financial Measures and Reconciliations" for more details. |
Summary Financial and Operational Results
(in thousands of USD |
3-Months Ended |
3-Months Ended |
6-Months Ended |
6-Months Ended |
Revenue |
282,200 |
283,026 |
498,200 |
543,139 |
Gross profit |
7,859 |
6,747 |
22,036 |
12,312 |
Income from operations |
3,713 |
976 |
12,752 |
(1,203) |
Net income (loss) |
2,670 |
(1,127) |
8,876 |
(4,855) |
Earnings (loss) per basic |
0.09 |
(0.04) |
0.29 |
(0.16) |
Adjusted net income2 |
2,734 |
620 |
9,142 |
957 |
Adjusted EBITDA1 |
4,906 |
2,452 |
15,481 |
2,234 |
1, 2. See the Non-IFRS Financial Measures and Reconciliations section |
Outlook
"Moreover, our partnership with
Conference Call Details
Management of Ceres will host a conference call today,
A live audio webcast of the conference call will be available at: https://app.webinar.net/wzqpaep0GLY. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days.
Non-IFRS Financial Measures and Reconciliation
1. Adjusted EBITDA (adjusted Earnings before Interest, Taxes, Depreciation and Amortization) is not a standardized financial measure prescribed by IFRS; however, it is a metric that is used by management to determine the Corporation's ability to service its debt and finance capital.
In calculating adjusted EBITDA, Ceres excludes gains and losses on property, plant and equipment, assets held for sale, and gains and losses on equity investments. Ceres may calculate adjusted EBITDA differently than other companies; therefore, Ceres' adjusted EBITDA may not be comparable to similar measures presented by other issuers.
Investors are cautioned that adjusted EBITDA should not be construed as an alternative to net income or loss, or to other standardized financial measures determined in accordance with IFRS and is not intended to represent cash flows or results of operations in accordance with IFRS. See the table below for the reconciliation of adjusted EBITDA.
(in thousands of USD) |
3-Months Ended |
3-Months Ended |
6-Months Ended |
6-Months Ended |
Net income (loss) |
2,670 |
(1,267) |
8,876 |
(4,855) |
Interest expense |
2,199 |
1,990 |
3,504 |
3,358 |
Amortization of intangible |
62 |
62 |
124 |
124 |
Income tax (recovery) |
(1,131) |
412 |
812 |
590 |
Share of income (loss) in |
(496) |
(272) |
(1,025) |
(169) |
Depreciation and |
1,584 |
1,544 |
3,172 |
3,203 |
(Gain) loss on property, |
18 |
(17) |
18 |
(17) |
Adjusted EBITDA |
4,906 |
2,452 |
15,481 |
2,234 |
2. Adjusted net income is not a standardized financial measure prescribed by IFRS; however, it is a metric that the Corporation believes can provide useful information to investors and shareholders as it can be used to evaluate the performance of the business. Adjusted net income excludes major one-time write offs, such as severance and employee cost reduction measures, as well as legal fees that relate to DOJ and CFTC investigations. See the table below for the reconciliation of adjusted net income.
(in thousands of USD) |
3-Months Ended |
3-Months Ended |
6-Months Ended |
6-Months Ended |
Net income (loss) |
2,670 |
(1,267) |
8,876 |
(4,855) |
Executive severance and |
- |
264 |
13 |
2,340 |
Regulatory investigations – |
64 |
1,623 |
253 |
3,472 |
Adjusted net income |
2,734 |
620 |
9,142 |
957 |
About
Ceres and its subsidiaries add value across agricultural, energy and industrial supply chains through efficient sourcing, storing, transporting and marketing of high–quality agricultural commodities, value– added products and raw materials. Leveraging its network of commodity logistics centers and team of industry experts, Ceres connects farmers to customers around the world.
Ceres is headquartered in
Ceres has a 50% interest in
For more information about Ceres, please visit www.ceresglobalagcorp.com
Forward-looking Statements
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and
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