Bevo Agro Inc. reports fiscal 2008 results



    LANGLEY, BC, Oct. 27 /CNW/ - Bevo Agro Inc. (BVO: TSX-Ven.) announces
financial results for the year ended June 30, 2008.
    Sales for the year ended June 30, 2008 totaled $19,763,458, compared to
$19,795,142 for the year ended June 30, 2007.
    The gross margin decreased to 28% of sales from 33% last year.
    On the expense side, operating expenses were reduced by 8% and
administrative expenses reduced by 4%. In total, the reductions in General and
Administrative expenses resulted in savings of $178,000.
    Interest expenses increased by $310,000 or 19%. $124,000 of the increase
was a write off of deferred financing costs and a further $242,000 was
prepayment penalties on loans.
    The mortgage receivable dated August 23, 2004 has been in default since
December of 2006. While Bevo has initiated foreclosure proceedings on the
property, there are uncertainties as to the collectability. Management feels
it is prudent to record a $629,892 allowance (impairment) against the full
amount. For the year ended June 30, 2008, the Company recovered $9,933 of bad
debts compared to a bad debt expense of $394,615 in 2007.
    The company incurred a net loss of $643,581 for the year ended June 30,
2008 compared to a loss of $279,606 last year.

    
    Financial Summary
    For the years ended                 June 30. '08       June 30. '07
    --------------------                ------------       ------------
    Sales                                $19,763,458 100%   $19,795,142 100%
    Cost of Sales                        $14,310,967  72%   $13,177,470  67%
                                       ------------------ ------------------
    Gross Margin                          $5,452,491  28%    $6,617,672  33%

    Expenses
    Operating & administrative            $1,433,495   7%    $1,562,712   8%
    Administrative fees, wages &
     benefits                             $1,143,705   6%    $1,192,093   6%
    Amortization                          $1,743,009   9%    $1,838,771   9%
    Interest expenses                     $1,968,848  10%    $1,658,926   8%
    Bad debts (recovery)                     ($9,933)  0%      $394,615   2%
    Allowance for mortgage receivable       $629,892   3%            $0   0%
                                       --------------------------------------
                                          $6,909,016  35%    $6,647,117  34%
                                       --------------------------------------
    Earnings (loss) from operations      ($1,456,525) -7%      ($29,445)  0%
    Other                                     $6,529   0%       $11,470   0%
                                       --------------------------------------
    Earnings before taxes                ($1,449,996) -7%      ($17,975)  0%
                                       --------------------------------------
    Income taxes-current                          $0   0%     ($182,898) -1%
    Income taxes-future                    ($806,415) -4%      $444,529   2%
                                       --------------------------------------
    Net earnings (loss) for period         ($643,581) -3%     ($279,606) -1%
    Basic & diluted loss per share             $0.02              $0.01

    EBITDA                                $2,261,861  11%    $3,434,972  17%


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

    The 12
     months ended     June 30. '05  June 30. '06  June 30. '07  June 30. '08
    --------------    ------------  ------------  ------------  ------------
    Sales              $21,756,304   $22,036,072   $19,795,142   $19,763,458
    Gross Margin        $6,766,286    $7,031,258    $6,572,922    $5,452,491
    Earnings (loss)
     from operations      $514,636      $797,702      ($29,445)  ($1,456,525)
    Net earnings          $985,782      $805,129     ($279,606)    ($643,581)
    EBITDA              $4,397,946    $4,412,000    $3,434,972    $2,261,861
    

    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 primarily 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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