Bevo Agro Inc. announces third quarter results

LANGLEY, BC, May 25 /CNW/ - Bevo Agro Inc. (BVO:TSX-Ven.) is pleased to report net earnings of $499,209 for the three months ended March 31, 2010, compared to net earnings of $296,471 for the three months ending March 31, 2009, an increase of 68%.

Earnings for the nine months total $444,546 compared to a net loss of $409,286 for the same nine months last year.

The gross profit margin for the 3rd quarter was $1,802,523 (52%) of sales compared to $1,592,650 (53%) for the same quarter last year. Margins for the nine months are 39% of sales, consistent with the previous year.

Total expenses for Q3 and year to date are lower than the same periods last year as interest costs and operating expenses decrease.

Sales for the third quarter ending March 31, 2010 were $3,456,505, a 15% increase over sales of $2,995,734 for the same quarter last year. Sales for the nine months ending March 31, 2010 totaled $10,129,649, an increase of $2.0 million over sales of $8,067,980 for the nine months ending March 31, 2009. Sales for the nine months ending March 31, 2010 include $1.1 million in payments from the Federal Government's AgriStability program.

Comparative results on a trailing twelve month basis continue to demonstrate improvement.

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

    
    Financial Summary
    -----------------
    Three months ending   Mar 31,2010               Mar 31,2009
    -------------------   -----------               -----------

    Sales                  $3,456,505         100%   $2,995,734         100%
    Cost of Sales          $1,653,982          48%   $1,403,084          47%
                          ---------------------------------------------------
    Gross Margin           $1,802,523          52%   $1,592,650          53%

    Expenses
    Operating &
     administrative          $242,962           7%     $269,969           9%
    Administrative wages
     & benefits              $268,571           8%     $260,734           9%
    Amortization             $370,064          11%     $381,042          13%
    Interest expenses        $143,555           4%     $213,429           7%
    Provision for
     bad debts            $    34,700           1%  $    31,605           1%
                          ---------------------------------------------------
                           $1,059,852          31%   $1,156,779          39%
    Earnings from
     operations              $742,671          21%     $435,871          15%
    Other                     ($8,552)          0%           $0           0%
                          ---------------------------------------------------
    Earnings before taxes    $734,119          21%     $435,871          15%
    Income taxes-current           $0           0%           $0           0%
    Income taxes-future      $234,910           7%     $139,400           5%
                          ---------------------------------------------------
    Net earnings for period  $499,209          14%     $296,471          10%
    Earnings per share          $0.02                     $0.01
    EBITDA                 $1,247,738          36%   $1,030,342          34%

    Nine months ending    Mar 31,2010               Mar 31,2009
    ------------------    -----------               -----------
    Sales                 $10,129,649         100%   $8,067,980         100%
    Cost of Sales          $6,210,067          61%   $5,063,091          61%
                          ---------------------------------------------------
    Gross Margin           $3,919,582          39%   $3,004,889          39%

    Expenses
    Operating &
     administrative          $767,848           8%     $775,716          10%
    Administrative wages
     & benefits              $854,697           8%     $778,844          10%
    Amortization           $1,080,701          11%   $1,136,580          14%
    Interest expenses        $437,863           4%     $840,664          10%
    Provision for
     bad debts            $   127,496           1%  $    80,459           1%
                          ---------------------------------------------------
                           $3,268,605          32%   $3,612,263          45%
    Earnings (loss) from
     operations              $650,977           6%    ($607,374)         -8%
    Other                      $2,759           0%           $0           0%
                          ---------------------------------------------------
    Earnings before taxes    $653,736           6%    ($607,374)         -8%
    Income taxes-current           $0           0%           $0           0%
    Income taxes-future      $209,190           2%    ($198,088)         -2%
                          ---------------------------------------------------
    Net earnings (loss)
     for period              $444,546           4%    ($409,286)         -5%
    Earnings per share          $0.02                    ($0.02)
    EBITDA                 $2,169,541          21%   $1,369,870          17%
    

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

    
    12 months  Mar 31,     Sept 30,      Mar 31,     Sept 30,      Mar 31,
    ---------  -------     --------      -------     --------      -------
    ended       2008         2008         2009         2009         2010
    -----       ----         ----         ----         ----         ----
    Sales    $18,789,620  $19,428,840  $17,237,976  $19,540,204  $19,938,024
    Gross
     Margin   $5,879,387   $5,534,899   $4,573,674   $6,099,393   $6,198,460
    Net
     earnings
     (loss)    ($636,611)   ($608,775)   ($615,466)  $1,381,378   $1,621,739
    EBITDA    $3,101,752   $2,291,075   $1,811,547   $3,585,232   $3,704,052
    

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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