Bevo Agro Inc. announces second quarter results for fiscal 2014.

LANGLEY, BC., Feb. 26, 2014 /CNW/ - Bevo Agro Inc. (BVO:TSXV) is pleased to report sales totaled $5,206,237 for the second quarter ending December 31, 2013, an increase of 7.3% compared to sales of $4,852,107 for the quarter ending December 31, 2012.

Sales for the six months ending December 31, 2013 totaled $7,356,413, compared to sales of $6,934,990 for the year earlier, an increase of 6% over the same period in the previous year.

The gross profit for the six months ending December 31, 2013 totals $1,814,921 compared to $1,547,793 for the six months in the previous year.

Expenses for the six months were $2,315,192 (31% of sales) compared to $2,303,627 (33%) for the same six months last year.

The company has not provided for any bad debt write offs in the second quarter, since accounts receivable are current and collectable.

The net loss for the six months ended December 31, 2013 was $336,042 compared to the loss of $507,934 last year. It should be noted that the company's business is somewhat cyclical with the majority of sales and profits occurring in the second half of the fiscal year.

Readers are encouraged to view the Company's unaudited financial statements at December 31, 2013, and accompanying MD&A at www.sedar.com.

Financial Summary

Consolidated Interim Condensed Statements of Operations and Comprehensive Income (Loss)

     
For the three months ended Dec. 31, 2013   Dec. 31, 2012  
Sales $5,206,237 100% $4,852,107 100%
Cost of Sales $3,732,125 72% $3,625,006 75%
Gross Margin $1,474,112 28% $1,227,101 25%
         
Expenses        
Operating & administrative $337,996 6% $322,366 7%
Admin. fees, wages & benefits $283,749 5% $273,944 6%
Amortization $388,412 7% $389,255 8%
Interest expenses $214,409 4% $222,675 5%
Provision for bad debts $       000   $       000  
  $1,224,566 24% $1,208,240 25%
Earnings (loss) from operations $249,546 5% $18,861 0%
Other income $3,373   $0  
Earnings before taxes $252,919 5% $18,861 0%
Income taxes-future $75,300   $0  
Net earnings (loss) for period $177,619 3% $18,861 0%
Earnings per share $0.01   $0.00  
         
EBITDA $855,740 16% $630,791 13%
Per share $0.04   $0.03  
         
         
For the six months ended Dec. 31, 2013   Dec. 31, 2012  
Sales $7,356,413 100% $6,934,990 100%
Cost of Sales $5,541,492 75% $5,387,197 78%
Gross Margin $1,814,921 25% $1,547,793 22%
         
Expenses        
Operating & administrative $567,544 8% $538,672 8%
Admin. fees, wages & benefits $562,659 8% $541,373 8%
Amortization $763,509 10% $775,796 11%
Interest expenses $421,480 6% $447,786 6%
Provision for bad debts $000 0% $000 0%
  $2,315,192 31% $2,303,627 33%
Earnings (loss) from operations -$500,271 -7% -$755,834 -11%
Other income $19,389   $0  
Earnings before taxes -$480,882 -7% -$755,834 -11%
Income taxes-future -$144,840 -2% -$247,900 -4%
Net earnings (loss) for period -$336,042 -5% -$507,934 -7%
Earnings per share -$0.01   -$0.02  
EBITDA $704,107 10% $467,748 7%
Per share $0.03   $0.02  

Because revenue is accounted as "when goods are shipped", the Company provides the following 12 month trailing summary of financial performance. The company anticipates the upward trends in sales and EBITDA will continue as a result of new initiatives put in place over the last two years.

Bevo's trailing twelve months results are summarized below

12 months ending June 30. '12     Dec. 31, 2012     June 30. '13     Dec. 31, 2013
Sales $18,897,742   $19,899,943   $20,587,204   $21,008,627
Gross Margin $4,757,872   $4,817,838   $5,083,066   $5,350,194
Net earnings for period $571,781   $541,175   $184,533   $356,425
EBITDA  $2,605,826   $2,609,311   $2,815,045   $3,051,404

Bevo Agro is North America's leading supplier of propagated agricultural plants, growing and distributing vegetable, flower, berry and other plant seedlings to North America's growers. Bevo propagates quality seedlings and plants for wholesale vegetable greenhouse growers, field growers, nurseries and retail outlets from its 39 acre production facility.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

SOURCE Bevo Agro Inc.

For further information:

Jack Benne, President
Bevo Agro Inc.
Phone: (604) 888-0420
Fax: (604) 888-8048
Email:  jackbenne@bevofarms.com