Bevo Agro Inc. announces second quarter results



    LANGLEY, BC, Feb. 26 /CNW/ - Bevo Agro Inc. (BVO:TSX-Ven.) reports sales
of $3,768,651 for the second quarter ending December 31, 2008, a decline of
20% compared to $4,706,799 for the quarter ending December 31, 2007. Sales for
the six months ending December 31, 2008 totaled $5,072,246. Sales for the same
period the year earlier were $6,345.012. The decrease is sales results from a
lower demand for the company's services due to economic conditions.
    The gross margin in the six months ended December 31, 2008 was 33% of
sales compared to 38% a year earlier as cold weather in Q2 caused a
significant increase in heating and utility costs.
    Expense reductions continue with all expenses lower on a comparative
basis.
    The Company generated net earnings of $11,404 for the three months ended
December 31, 2008, compared to a net profit of $187,405 for the three months
ending December 31, 2007. The net loss for the six months ending December 31,
2008 was $705,757 compares to a net loss of $656,390 last year.

    
    Financial Summary
    -----------------
                                 3 months                  3 months
    Period ending               31-Dec-08                 31-Dec-07

    Sales                      $3,768,651      100%      $4,706,799     100%
    Cost of Sales              $2,541,429       67%      $2,899,256      62%
                              -----------------------------------------------
    Gross Margin               $1,227,222       33%      $1,807,543      38%

    Expenses
    Operating & admin.           $253,176        7%        $407,377       9%
    Admin fees, wages,
     benefits                    $264,031        7%        $296,330       6%
    Amortization                 $378,797       10%        $376,465       8%
    Interest expenses            $283,381        8%        $405,284       9%
    Provision for bad debts       $36,433        1%         $46,482       1%
                              -----------------------------------------------
    Total expenses             $1,215,818       32%      $1,531,938      33%
    Earnings (loss) from
     operations                   $11,404        0%        $275,605       6%

    Earnings before taxes         $11,404                  $275,605
    Income taxes-current               $0                        $0
    Income taxes-future                $0                   $88,200
                              -----------------------------------------------
    Net earnings (loss)
     for period                   $11,404        0%        $187,405       4%

    EBITDA                       $673,582       18%      $1,057,354      22%


    Financial Summary
    -----------------
                                   6 mths                    6 mths
    Period ending               31-Dec-08                 31-Dec-07

    Sales                      $5,072,246      100%      $6,345,012     100%
    Cost of Sales              $3,660,007       72%      $4,434,860      70%
                              -----------------------------------------------
    Gross Margin               $1,412,239       28%      $1,910,152      30%
    Expenses
    Operating & admin.           $505,747       10%        $690,413      11%
    Admin fees, wages,
     benefits                    $518,110       10%        $563,637       9%
    Amortization                 $755,538       15%        $763,507      12%
    Interest expenses            $627,235       12%        $804,021      13%
    Provision for bad debts       $48,854        1%         $53,844       1%
                              -----------------------------------------------
    Total expenses             $2,455,484       48%      $2,875,422      45%
    Earnings (loss) from
     operations               ($1,043,245)     -21%       ($965,270)    -15%

    Earnings before taxes     ($1,043,245)                ($965,270)
    Income taxes-current               $0                        $0
    Income taxes-future         ($337,488)                ($308,880)
                              -----------------------------------------------
    Net earnings (loss)
     for period                 ($705,757)                ($656,390)

    EBITDA                       $339,528        7%        $602,258       9%



    Bevo Agro's trailing twelve months comparative results are summarized
below:
                           June 30,       Dec 31,      June 30,       Dec 31,
    12 months ended           2007          2007          2008          2008
    ---------------   ------------- ------------- ------------- -------------
    Sales              $19,795,142   $19,152,369   $19,763,458   $18,490,692
    Gross Margin        $6,572,922    $5,820,188    $5,452,491    $4,954,578
    Net (loss)
     for period          ($279,606)    ($492,585)    ($650,943)    ($700,310)
    EBITDA              $3,434,972    $3,000,442    $2,254,499    $1,991,769


    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


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