Bevo Agro Inc. Reports Increase In Sales and Profit

LANGLEY, BC, Feb. 24, 2016 /CNW/ - Bevo Agro Inc. (TSXV: BVO) achieved record operating and financial results for the second quarter and for the six months ending December 31, 2015.

Second Quarter Highlights (versus Q2 last year)

  • Record Q2 sales of $6,776,711, an increase of 5.5% over sales of $6,422,391 in Q2 last year.
  • Net earnings of $364,948 in the second quarter.
  • EBITDA totaling $1,136,051, a 77% increase over EBITDA of $642,742 last year.

Year to date Highlights (versus the first six months of last year)

  • Record sales $11,288,378, an increase of 8.8% over the same six month period last year.
  • Net earnings of $241,479 for the six month period, versus a loss last year.
  • EBITDA totaling $1,604,574, a 66.5% increase over last year.

Bevo Agro Inc. (BVO: TSXV) reports record sales of $ $6,776,711 for the second quarter ending December 31, 2015, an increase of 5.5% on sales of $6,422,391 last year.

Sales for the six months ending December 31, 2015 totaled $11,288,378, compared to sales of $10,370,796 for the same period the year earlier.  Sales for both the three month (Q2) and six month periods represent all-time record highs for the company during these respective periods.

The gross profit for the three months ending December 31, 2015 was $1,709,775 compared to $1,295,981 in the same quarter the previous year. The gross profit of $2,820,345 for the first six months was a 31% increase over $2,151,744 last year.

Expenses for the six months were $2,494,026 (22% of sales) compared $2,474,360 (24%) for the same six months last year.

The company has not provided for any bad debt write offs in the second quarter, since accounts receivable which are reviewed monthly, are current and collectible.

The net profit for the six months ended December 31, 2015 was $241,479 versus a loss of $188,455 for the same period last year.

Readers are encouraged to view the Company's unaudited financial statements as at December 31, 2015, and accompanying MD&A at www.sedar.com.

Financial Summary

Consolidated Interim Condensed Statements of Operations and Comprehensive Income (Loss)

For the three months ending

     Dec 31, 2015



Dec 31, 2014


Change

Sales

$6,776,711

100%


$6,422,391

100%

$354,320

Cost of Sales

$5,066,936

75%


$5,126,410

80%

($59,474)

Gross Margin

$1,709,775

25%


$1,295,981

20%

$413,794








Expenses







Operating & administrative

$279,042

4%


$345,800

5%

($66,758)

Admin wages & benefits

$294,682

4%


$307,439

5%

($12,757)

Amortization

$447,394

7%


$415,500

6%

$31,894

Interest expenses

$195,489

3%


$209,846

3%

($14,357)

Total

$1,216,607

18%


$1,278,585

20%

($61,978)

Earnings (loss) from operations

$493,168

7%


$17,396

0%

$475,772

Other







Earnings before taxes

$493,168

7%


$17,396

0%

$475,772

Income taxes-future

$128,220



$4,530


$123,690

Net earnings (loss) for period

$364,948

5%


$12,866

0%

$352,082

per share

$0.00



$0.00



EBITDA

$1,136,051

17%


$642,742

10%

$493,309

per share

$0.04



$0.03










For the six months ending

       Dec 31, 2015



Dec 31, 2014


Change

Sales

$11,288,378

100%


$10,370,796

100%

$917,582

Cost of Sales

$8,468,033

75%


$8,219,052

79%

$248,981

Gross Margin

$2,820,345

25%


$2,151,744

21%

$668,601








Expenses







Operating & administrative

$611,879

5%


$644,138

6%

($32,259)

Admin wages & benefits

$603,892

5%


$611,962

6%

($8,070)

Amortization

$886,365

8%


$805,383

8%

$80,982

Interest expenses

$391,890

3%


$412,877

4%

($20,987)

Total

$2,494,026

22%


$2,474,360

24%

$19,666

Earnings (loss) from operations

$326,319

3%


($322,616)

-3%

$648,935

Other

$0



$67,951



Earnings before taxes

$326,319

3%


($254,665)

-2%

$580,984

Income taxes-future

$84,840

1%


($66,210)

-1%

$151,050

Net earnings (loss) for period

$241,479

2%


($188,455)

-2%

$429,934

per share

$0.01



($0.01)



EBITDA

$1,604,574

14%


$963,595

9%

$640,979

per share

$0.07



$0.04










 

Because revenue is accounted as "when goods are shipped", the Company provides the following 12 month trailing summary of financial performance.  

Bevo's trailing twelve months results are summarized below

12 months end

 Dec 31, '13

June 30. '14

 Dec 31, '14

June 30. '15

 Dec 31, '15

Since 2013

Sales

$21,008,627

$23,309,085

$26,323,468

$26,221,677

$27,139,259

29%

Gross Margin

$5,350,194

$5,918,741

$6,255,564

$6,801,354

$7,469,955

40%

Pretax Earnings

$433,895

$923,245

$1,149,462

$1,509,756

$2,090,740

382%

Net earnings

$356,425

$738,745

$886,332

$1,197,556

$1,627,490

357%

EBITDA 

$2,866,060

$3,359,710

$3,619,198

$4,078,579

$4,719,558

65%








Bevo Agro is North America's leading supplier of propagated agricultural plants, operating 45 acres of greenhouse facilities on 98 acres of land in Langley, BC and 20 acres of land in Pitt Meadows, BC. The Company's main products are the propagation of vegetable plants such as tomatoes, peppers, cucumbers, and other plants such as bedding plants, flowers and grasses.  The Company markets its products to established greenhouse growers, nurseries and retail outlets throughout North America.  The majority of Bevo's sales result from repeat orders through recurring multiyear contracts. 

Bevo has achieved a ranking in the 2015 TSX Venture 50® which recognizes the strongest companies on TSXV by share price, trading volume, market capitalization and analyst coverage. The winning companies have seen impressive growth over the past year, offered strong return to their shareholders and are actively traded in the market.

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

RELATED LINKS
http://www.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