BEVO AGRO INC. ANNOUNCES THIRD QUARTER RESULTS

LANGLEY, BC, May 18 /CNW/ - Bevo Agro Inc. (TSXV: BVO) is pleased to report sales for the third quarter ending March 31, 2011 were $3,346,268 compared to sales of  $3,456,505 during the same quarter last year. Sales for the nine months ending March 31, 2011 were $9,641,370, compared to sales of $10,129,649 the previous year. During the nine months ending March 31, 2010 the Company received $1,101,624 in payments from the Federal Government's AgriStability program. This payment had a positive impact on sales and earnings during 2010 compared to other years.

Total expenses for the third quarter increased by approximately $128,000 over the same quarter last year. Legal fees related to accounts receivable represented $93,000 of the increase and interest costs were approximately $28,000 for the third quarter. Administrative fees and wages and amortization were lower than Q3 last year. For the nine month period total expenses are in line with last year.

Net earnings for the three months ending March 31, 2011 totaled $287,524 compared to $499,209 for the same period last year. The nine month results show a loss of $53,177. The $444,546 net profit of the previous year was impacted by the $1.1 million of payments from the Federal Government's AgriStability program.

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

Financial Summary

3 months ending Mar. 31 ,2011     Mar.  31 ,2010  
Sales $3,346,268 100%   $3,456,505 100%
Cost of Sales $1,735,927 52%   $1,653,982 48%
Gross Margin $1,610,341 48%   $1,802,523 52%
           
Expenses          
Operating & administrative $348,652 10%   $242,962 7%
Administrative fees, wages & benefits $265,534 8%   $268,571 8%
Amortization $367,557 11%   $370,064 11%
Interest expenses $171,944 5%   $143,555 4%
Provision for bad debts $34,200 1%   $34,700 1%
Total $1,187,887 35%   $1,059,852 31%
Earnings (loss) from operations $422,454 13%   $742,671 21%
Income (Expense)       - $8,552 0%
Earnings before taxes $422,454 13%   $734,119 21%
Income taxes-current $0 0%   $0 0%
Income taxes-future $134,930 4%   $234,910 7%
Net earnings (loss) for period $287,524 9%   $499,209 14%
           
9 months ending Mar. 31 ,2011     Mar. 31 ,2010  
Sales $9,641,370 100%   $10,129,649 100%
Cost of Sales $6,402,343 66%   $6,210,067 61%
Gross Margin $3,239,027 34%   $3,919,582 39%
           
Operating & administrative $844,299 9%   $767,848 8%
Administrative fees, wages & benefits $806,939 8%   $854,697 8%
Amortization $1,082,304 11%   $1,080,701 11%
Interest expenses $511,789 5%   $437,863 4%
Provision for bad debts $72,273 1%   $127,496 1%
Total $3,317,604 34%   $3,268,605 32%
Earnings (loss) from operations - $78,577 -1%   $650,977 6%
Income (Expense) $0 0%   $2,759 0%
Earnings before taxes - $78,577 -1%   $653,736 6%
Income taxes-current $0 0%   $0 0%
Income taxes-future -$25,400 0%   $209,190 2%
Net earnings (loss) for period - $53,177 -1%   $444,546 4%

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

12 months ended     Mar 31 ,2008   Mar 31 ,2009   Mar 31 ,2010   Mar 31 ,2011
Sales     $18,789,620   $17,237,976   $19,938,024   $19,433,694
Gross Margin     $5,879,387   $4,645,388   $6,198,460   $5,095,781
Net earnings (loss) for period     - $636,611   - $543,752    $1,621,739   $557,571
EBITDA     $3,101,752   $1,883,261   $3,704,052   $2,787,441

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 Company recently announced plans for a five acre expansion which is estimated to cost $4.2 million.

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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