Bevo Agro Inc. announces first quarter results



    LANGLEY, BC, Nov. 29 /CNW/ - Bevo Agro Inc. (BVO:TSX-Ven.) announces
results for the three months ended September 30, 2007.
    Bevo recorded sales of $1,638,213 for the first quarter ending Sept. 30,
2007, compared to sales of $2,873,509 for the first quarter the year earlier.
    The net after tax loss for the first quarter was $843,795 compared to a
net loss of $407, 920 in the first quarter last year.
    Bevo's sales are subject to seasonal variations. The first quarter is the
weakest in terms of sales and earnings given that operating costs remain fixed
regardless of the time of year. Consequently, the first quarter operating
ratio (EBITDA/sales) is lower in this reporting period. Readers are encouraged
to view the complete MDA report at www.sedar.com.
    As previously announced, Banyan has agreed to extend the $5,000,000
debenture to January 31, 2008. Bevo is currently negotiating alternative
sources of long-term financing with the cooperation of Banyan Capital
Partners.

    
    Financial Summary
    3 months ended              Sept. 30, 2007         Sept. 30, 2006
    --------------              --------------         --------------
    Sales                          $ 1,638,213   100%     $ 2,873,509   100%
    Cost of Sales                  $ 1,535,604    94%     $ 1,942,217    68%
                                   -----------   ----     -----------   ----
    Gross Margin                   $   102,609     6%     $   931,292    32%

    Expenses
    Operating & administrative     $   283,036    17%     $   278,733    10%
    Admin. fees, wages & benefits  $   267,307    16%     $   266,662     9%
    Amortization                   $   387,042    24%     $   456,197    16%
    Interest expenses              $   398,737    24%     $   411,221    14%
    Provision for bad debts        $     7,362     0%     $   182,353     6%
                                   -----------   ----     -----------   ----
                                   $ 1,343,484    82%     $ 1,595,166    56%
                                   -----------   ----     -----------   ----
    Earnings (loss) from
     operations                    ($1,240,875)  -76%       ($663,874)  -23%
    Other                                                 $    11,470
                                                          ------------
    Earnings before taxes          ($1,240,875)             ($652,404)
    Income taxes-current
    Income taxes-future              ($397,080)             ($244,484)
                                     ----------             ----------
    Net earnings (loss) for
     period                          ($843,795)  -52%       ($407,920)  -14%

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


    12 mths end  Sept. 30, 2006  Dec. 31, 2006  June 30, 2007  Sept. 30, 2007
    -----------  --------------  -------------  -------------  --------------
    Sales        $  22,276,867   $ 20,705,370   $ 19,795,142   $  18,559,846
    Gross Margin $   7,385,650   $  6,756,680   $  6,572,922   $   5,744,239
    Net earnings
     (loss) for
     period      $     959,330   $    507,665      ($279,606)      ($715,481)
    EBITDA       $   4,604,460   $  3,840,451   $  3,434,972   $   2,764,862
    

    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.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or the accuracy of this news release.




For further information:

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


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890