BEVO AGRO INC. ANNOUNCES SECOND QUARTER RESULTS

(www.bevoagro.com)

LANGLEY, BC, Feb. 24 /CNW/ - Bevo Agro Inc. (BVO:TSX-V) reports sales of $4,333,408 for the second quarter ending December 31, 2010, compared to sales of $3,705,700 for the quarter ending December 31, 2009. Sales for the six months ending December 31, 2010 totaled $6,295,102, compared to sales of $6,673,144 for the six months the year earlier.  Sales and profits for the six months ending December 31, 2009, included $871,378 received from the Federal Government's AgriStability program.  Excluding AgriStability, sales for the six months ending December 31, 2009 were $5,801,766 and the net loss was $654,889.

The gross margin for the 2nd quarter was 32% compared to 30% last year. For the six months ending December 31, 2010 the gross margin was 26% versus 32% for the six months last year. Financial results for the six months ended December 31, 2009 were affected by the AgriStability payment.

Second quarter operating expenses were consistent with the previous year and totaled $2,129,717 for the six months compared to $2,208,753 the previous period.

The Company generated net earnings $134,952 for the three months ended December 31, 2010, compared to a net profit of $49,027 for the three months ending December 31, 2009.  The net loss for the six months ending December 31, 2010 was $340,701. The $54,663 net loss last year was impacted by the AgriStability payment.

Readers are encouraged to view the Company's unaudited financial statements at December 31, 2010, and accompanying MD&A at www.sedar.com.

Financial Summary;

For the three months ending       Dec 31, 2010                     Dec 31, 2009        
Sales   $4,333,408       100%   $3,705,700       100%
Cost of Sales   $2,965,051       68%   $2,589,284       70%
Gross Margin   $1,368,357       32%   $1,116,416       30%
                         
Expenses                        
Operating & administrative   $327,159       8%   $264,104       7%
Administrative fees, wages & benefits   $283,542       7%   $254,385       7%
Amortization   $358,389       8%   $356,959       10%
Interest expenses   $177,405       4%   $145,945       4%
Provision for bad debts   $23,400       1%   $34,232       1%
Total   $1,169,895       27%   $1,055,625       28%
Earnings (loss) from operations   $198,462       5%   $60,791       2%
Other                       $0           $11,311        
Earnings before taxes   $198,462       5%   $72,102       2%
Income taxes-current                        
Income taxes-future   $63,510           $23,075        
Net earnings (loss) for period   $134,952       3%   $49,027       1%
Earnings per share   $0.00           $0.00        
                         
EBITDA   $734,256       17%   $575,006       16%
                         
For the six months ending      Dec 31, 2010                    Dec 31, 2009        
Sales   $6,295,102       100%   $6,673,144       100%
Cost of Sales   $4,666,416       74%   $4,556,085       68%
Gross Margin   $1,628,686       26%   $2,117,059       32%
                         
Expenses                        
Operating & administrative   $495,647       8%   $524,886       8%
Administrative fees, wages & benefits   $541,405       9%   $586,126       9%
Amortization   $714,747       11%   $710,637       11%
Interest expenses   $339,845       5%   $294,308       4%
Provision for bad debts   $38,073       1%   $92,796       1%
Total   $2,129,717       34%   $2,208,753       33%
Earnings (loss) from operations   -$501,031       -8%   -$91,694       -1%
Other   $0           $11,311        
Earnings before taxes   -$501,031       -8%   -$80,383       -1%
Income taxes-current   $0           $0        
Income taxes-future   -$160,330       -3%   -$25,720       0%
Net earnings (loss) for period   -$340,701       -5%   -$54,663       -1%
Earnings per share   -$0.02           $0.00        
                         
EBITDA   $553,561       9%   $924,562       14%
                         
                       

Bevo Agro's trailing twelve months comparative results are summarized below

Twelve months ending     Dec 31, '08     June 30. '09     Dec 31, '09     June 30. '10     Dec 31, '10
Sales     $18,490,692     $17,876,355     $19,477,253     $19,921,973     $19,563,581
Gross Margin     $5,026,292     $5,283,767     $5,988,587     $5,776,336     $5,376,007
Earnings (loss) from operations     ($1,554,614)     $262,838     $1,214,389     $1,274,431     $896,389
Net earnings (loss) for period     ($713,062)     $767,907     $1,419,001     $1,055,294     $790,541

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 and nursery operators from its 34 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


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