Bevo Agro Inc. announces first quarter results

LANGLEY, BC, Nov. 25 /CNW/ - Bevo Agro Inc. (BVO:TSX-Ven.) announces results for the three months ended September 30, 2009.

Sales for the first quarter were $2,967,444 which included an AgriStability payment from the federal government in the amount of $871,378. AgriStability is a program that provides financial assistance to farms that experience margin declines. This compares to sales of $1,303,595 for the first quarter the year earlier. Increased propagation and cucumber production generated a significant increase in sales.

The gross margin for the quarter was $1,000,643 compared to $185,017 the prior year. The increase in gross margin is a result of the receipt of the AgriStability payment.

Total expenses for the quarter totaled $1,153,128 compared to $1,239,666 in the same quarter the year earlier. The decrease in expenses is primarily a result of lower interest costs. The total debt of the Company has been reduced by over $3.0 million since September 30, 2008.

The net loss and comprehensive loss for the quarter was $103,690 compared to $717,161 for the previous year.

The shareholders' equity at September 30, 2009 was $9,716,269 compared to $8,334,891 at September 30, 2008.

Readers are encouraged to view the Company's unaudited financial statements at September 30, 2009, and accompanying MD&A at www.sedar.com.

    
    Financial Summary
    3 months ended                      Sept. 30, 2009      Sept. 30, 2008
    --------------                      --------------      --------------

    Sales                              $2,967,444   100%   $1,303,595   100%
    Cost of Sales                      $1,966,801    66%   $1,118,578    86%
                                      ------------------- -------------------
    Gross Margin                       $1,000,643    34%     $185,017    14%

    Expenses
    Operating & administrative           $260,782     9%     $252,571    19%
    Admin. fees, wages & benefits        $331,741    11%     $254,079    19%
    Amortization                         $353,678    12%     $376,741    29%
    Interest expenses                    $148,363     5%     $343,854    26%
    Provision for bad debts               $58,564     2%      $12,421     1%
                                      ------------------- -------------------
                                       $1,153,128    39%   $1,239,666    95%
                                      ------------------- -------------------
    Earnings (loss) from operations     ($152,485)   -5%  ($1,054,649)  -81%
    Other                                      $0                  $0
                                      ------------------- -------------------
    Earnings before taxes               ($152,485)        ($1,054,649)
    Income taxes - current                     $0                  $0
    Income taxes - future                ($48,795)          ($337,488)
                                      ------------------- -------------------
    Net earnings (loss) for period      ($103,690)   -3%    ($717,161)  -55%

    Earnings per share                      $0.00              ($0.03)
    EBITDA                               $349,556    12%    ($334,054)  -26%
    

Bevo Agro is North America's leading propagator of vegetable plants including tomatoes, peppers, cucumbers as well as bedding plants, flowers and poinsettias. In addition to being a certified organic grower, Bevo also produces cucumbers which are marketed and sold through a licensed marketing agency. Bevo's vigorous, well rooted, healthy and pest free plants are grown under stringent controlled conditions 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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