Bevo Agro Inc. announces second quarter results.

LANGLEY, BC, Feb. 26, 2013 /CNW/ - Bevo Agro Inc. (BVO:TSXV) reports sales of $4,852,107 for the second quarter ending December 31, 2012, an increase of 14.65% compared to sales of $4,231,964 for the quarter ending December 31, 2011. Sales for the six months ending December 31, 2012 totaled $6,934,990, compared to sales of $5,932,789 for the year earlier, an increase of over $1,000,000 or 17%.

The gross profit for the six months ending December 31, 2012 totals $1,547,793 compared to $1,487,827 for the six months in the previous year; however the margin percentage declined to 22% versus the margin of 25% for the same period in the prior year. The margin decline was caused by higher delivery costs, as well as increased wage costs related to an increase in the provincial minimum wage.

Operating expenses increased by 4.5% ($51,263) in the second quarter, and 5.2% ($113,852) for the year to date. $50,000 of the increase for the six months is a result of higher amortization, with the balance made up of smaller increases in administration costs.

Since the accounts receivable are current and collectable, the company did not provide for any bad debts in the second quarter.

The net loss for the six months ended December 31, 2012 was $507,934 compared to the loss of $477,328 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, 2012, and accompanying MD&A at www.sedar.com.

Financial Summary

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

For the three months ending Dec 31, 2012     Dec 31, 2011    
Sales $4,852,107 100%   $4,231,964 100%    
Cost of Sales $3,625,006 75%   $2,997,490 71%    
Gross Margin $1,227,101 25%   $1,234,474 29%    
               
Expenses              
Operating & administrative $322,366 7%   $269,162 6%    
Administrative fees, wages & benefits $273,944 6%   $264,148 6%    
Amortization $389,255 8%   $375,380 9%    
Interest expenses $222,675 5%   $226,837 5%    
Provision for bad debts $0 0%   $21,450 1%    
  $1,208,240 25%   $1,156,977 27%    
Earnings (loss) from operations $18,861 0%   $77,497 2%    
               
Earnings before taxes $18,861 0%   $77,497 2%    
Income taxes-future       $17,920      
Net earnings (loss) for period $18,861 0%   $59,577 1%    
Earnings per share $0.00     $0.00      
               
               
               
               
For the six months ending Dec 31, 2012     Dec 31, 2011          
Sales $6,934,990 100%   $5,932,789 100%    
Cost of Sales $5,387,197 78%   $4,444,962 75%    
Gross Margin $1,547,793 22%   $1,487,827 25%    
               
Expenses              
Operating & administrative $538,672 8%   $464,144 8%    
Administrative fees, wages & benefits $541,373 8%   $529,440 9%    
Amortization $775,796 11%   $725,808 12%    
Interest expenses $447,786 6%   $440,403 7%    
Provision for bad debts $0 0%   $38,073 1%    
  $2,303,627 33%   $2,189,775 37%    
Earnings (loss) from operations -$755,834 -11%   -$701,948 -12%    
               
Earnings before taxes -$755,834 -11%   -$701,948 -12%    
Income taxes-future -$247,900 -4%   -$224,620 -4%    
Net earnings (loss) for period -$507,934 -7%   -$477,328 -8%    
Earnings per share -$0.02     -$0.02      
               

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 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


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