Bevo Agro Inc. announces second quarter results.

LANGLEY, BC, Feb. 25 /CNW/ - Bevo Agro Inc. (BVO:TSX-Ven.) reports sales of $3,705,700 for the second quarter ending December 31, 2009, compared to sales of $3,768,651 for the quarter ending December 31, 2008. Sales for the six months ending December 31, 2009 totaled $6,673,144, an increase of $1.6 million over sales of $5,072,246 for the six months ending December 31, 2008. $871,378 of the increase resulted from the Federal Government's AgriStability payment.

Total expenses for the most recent quarter are $160,193 lower than the same quarter the previous year as a result of lower borrowing costs and amortization.

The Company generated net earnings of $49,027 for the three months ended December 31, 2009, compared to a net profit of $11,404 for the three months ending December 31, 2008. The net loss for the six months ending December 31, 2009 was $54,663 compares to a net loss of $705,757 last year.

Net earnings for the 12 months ending December 31, 2009 have increased to nearly $3,486,656 from trailing twelve month earnings of 1,991,769 at December 31, 2008.

    
    Financial Summary:
    ------------------

    3 months ending                      Dec 31, 2009         Dec 31, 2008
    ---------------                      ------------         ------------
    Sales                              $3,705,700   100%    $3,768,651   100%
    Cost of Sales                      $2,589,284    70%    $2,541,429    67%
                                      ------------ -----   ------------ -----
    Gross Margin                       $1,116,416    30%    $1,227,222    33%

    Expenses
    Operating & administrative           $264,104     7%      $253,176     7%
    Admin fees, wages & benefits         $254,385     7%      $264,031     7%
    Amortization                         $356,959    10%      $378,797    10%
    Interest expenses                    $145,945     4%      $283,381     8%
    Provision for bad debts               $34,232     1%       $36,433     1%
                                      ------------ -----   ------------ -----
                                       $1,055,625    28%    $1,215,818    32%
                                      ------------ -----   ------------ -----
    Earnings from operations              $60,791     2%       $11,404     2%
    Other                                 $11,311     0%                   0%
                                      ------------ -----                -----
    Earnings before taxes                 $72,102     2%       $11,404     0%
    Income taxes-current                       $0                   $0
    Income taxes-future                   $23,075     1%            $0     0%
                                      ------------ -----   ------------ -----
    Net earnings for period               $49,027     1%       $11,404     0%
    Earnings per share                      $0.00                $0.00



    6 months ending                      Dec 31, 2009         Dec 31, 2008
    ---------------                      ------------         ------------
    Sales                              $6,673,144   100%    $5,072,246   100%
    Cost of Sales                      $4,556,085    68%    $3,660,007    72%
                                      ------------ -----   ------------ -----
    Gross Margin                       $2,117,059    32%    $1,412,239    28%

    Expenses
    Operating & administrative           $524,886     8%      $505,747    10%
    Admin fees, wages & benefits         $586,126     9%      $518,110    10%
    Amortization                         $710,637    11%      $755,538    15%
    Interest expenses                    $294,308     4%      $627,235    12%
    Provision for bad debts               $48,854     1%       $48,854     1%
                                      ------------ -----   ------------ -----
                                       $2,208,753    33%    $2,455,484    48%
                                      ------------ -----   ------------ -----
    Earnings (loss) from operations      ($91,694)    2%   ($1,043,245)    2%
    Other                                 $11,311     0%            $0     0%
                                      ------------ -----   ------------ -----
    Earnings before taxes                ($80,383)   -1%   ($1,043,245)  -21%
    Income taxes-current                       $0                   $0
    Income taxes-future                  ($25,720)    0%     ($337,488)   -7%
                                      ------------ -----   ------------ -----
    Net earnings (loss) for period       ($54,663)    0%     ($705,757)   -7%
    Earnings per share                      $0.00               ($0.03)


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

    12 months
    ---------
     ending         June 30. '08          Dec 31, '08         June 30. '09
     ------         ------------          -----------         ------------
    Sales        $19,763,458   100%   $18,490,692   100%   $17,876,355   100%
    Gross Margin  $5,452,491    28%    $4,954,578    27%    $5,283,767    30%
    Net earnings
     (loss)        ($650,943)   -3%     ($700,310)   -4%      $767,907     4%
    EBITDA        $2,254,499    11%    $1,991,769    11%    $2,901,622    16%


    12 months
    ---------
     ending         Dec 31, '09
     ------         -----------
    Sales        $19,477,253   100%
    Gross Margin  $5,988,587    31%
    Net earnings
     (loss)       $1,419,001     7%
    EBITDA        $3,486,656    18%
    

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: 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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