Bevo Agro Inc. announces third quarter results



    LANGLEY, BC, May 28 /CNW/ - Bevo Agro Inc. (BVO:TSX-Ven.) is pleased to
report net earnings for the three months ending March 31, 2009, more than
doubled to $296,471 from $127,161 in the same period last year. As a result,
the loss for the nine months has been reduced to $409,286 compared to the nine
month loss of $529,229 experienced in 2008.
    The improved earnings occurred despite a 29% reduction of Q3 sales to
$2,995,734 from $4,248,450 for the same three months last year as a result of
an economic environment which has challenged Bevo and their clients. Sales for
the nine months ended March 31, 2009 were $8,067,980. Sales last year totaled
$10,593,462.
    Financial results for the three and nine months were positively impacted
by improved gross margins from diversification of products and an aggressive
program to reduce operating and administrative expenses. The operating and
administrative expenses were 31% lower in Q3 than the same quarter last year
and are 23% lower for the nine months ended March 31, 2009.
    Interest expenses have declined by nearly $325,000 to $213,429 for the
quarter and over $500,000 year to date. The company benefited from lower
interest rates, but has also reduced long term debt by over $1.0 million in
the last nine months.

    
    Financial Summary
    -----------------
    For the 3 months ended             Mar 31, 2009       Mar 31, 2008
                                       ------------       ------------
    Sales                                $2,995,734  100%   $4,248,450  100%
    Cost of Sales                        $1,403,084   47%   $2,274,896   54%
                                 --------------------------------------------
    Gross Margin                         $1,592,650   53%   $1,973,554   46%

    Expenses
    Operating & admin.                     $269,969    9%     $497,373   12%
    Admin fees, wages, benefits            $260,734    9%     $272,146    6%
    Amortization                           $381,042   13%     $403,848   10%
    Interest expenses                      $213,429    7%     $538,289   13%
    Provision for bad debts                 $31,605    1%      $84,466    2%
                                 --------------------------------------------
                                         $1,156,779   39%   $1,796,122   42%
                                 --------------------------------------------
    Earnings from operations               $435,871   15%     $177,432    4%
    Other                                              0%       $6,529    0%
                                 --------------------------------------------
    Earnings before taxes                  $435,871   15%     $183,961    4%
    Income taxes-current                         $0                 $0
    Income taxes-future                    $139,400    5%      $56,800    1%
                                 --------------------------------------------
    Net earnings for period                $296,471   10%     $127,161    3%

    EBITDA                               $1,030,342   34%   $1,126,098   27%
    Earnings Share                            $0.01              $0.01
    EBITDA/Share                              $0.05              $0.05
    -------------------------------------------------------------------------

    For the 9 months ended             Mar 31, 2009       Mar 31, 2008
                                       ------------       ------------
    Sales                                $8,067,980  100%  $10,593,462  100%
    Cost of Sales                        $5,063,091   63%   $6,709,756   63%
                                 --------------------------------------------
    Gross Margin                         $3,004,889   37%   $3,883,706   37%

    Expenses
    Operating & admin.                     $775,716   10%   $1,187,786   11%
    Admin fees, wages, benefits            $778,844   10%     $835,783    8%
    Amortization                         $1,136,580   14%   $1,167,355   11%
    Interest expenses                      $840,664   10%   $1,342,310   13%
    Provision for bad debts                 $80,459    1%     $138,310    1%
                                 --------------------------------------------
                                         $3,612,263   45%   $4,671,544   44%
                                 --------------------------------------------
    Earnings (loss) from operations       ($607,374)  -8%    ($787,838)  -7%
    Other                                              0%       $6,529    0%
                                 --------------------------------------------
    Earnings before taxes                 ($607,374)  -8%    ($781,309)  -7%
    Income taxes-current                         $0                 $0
    Income taxes-future                   ($198,088)  -2%    ($252,080)  -2%
                                 --------------------------------------------
    Net earnings (loss) for period        ($409,286)  -5%    ($529,229)  -5%

    EBITDA                               $1,369,870   17%   $1,728,356   16%

    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