Bevo Agro Inc. Reports Fiscal 2017 Results

LANGLEY, BC, Oct. 30, 2017 /CNW/ - Bevo Agro Inc. (TSXV: BVO) is pleased to report all-time records achieved for sales, EBITDA and net earnings for the fiscal year ending June 30, 2017.

Major 2017 Highlights

• All-time records achieved for revenue, EBITDA and Net Income
• Record revenues totaling $33,351,285
• Record EBITDA of $7,048,609.
• Record earnings per share of $0.12.

Fiscal 2017 Highlights (versus 2016)

• Revenues increased by $2.184M or 7%
• 8% increase in Net earnings
• Earnings per share of $0.12 compared to $0.11.
• EBITDA increased by 21% to $7.048M.

Fourth Quarter Highlights (2017 versus 2016)

• Revenues increased by 23%.
• Net earnings increased by 8%
• EBITDA increased by 44%.

Net earnings increased by 8% to $3,056,232, an all-time record, for the year ending June 30, 2017 compared to the previous year earnings of 2,825,603.  Net earnings for the fourth quarter were $1,881,623, an increase of 11% over net earnings of $1,700,264 in Q4 last year.

Bevo experienced all-time record sales for the year ending June 30, 2017 of $33,351,285, an increase of 7% over sales of $31,167,250 for the year ended June 30, 2016.   Sales for the fourth quarter rose 23% to $16,151,587 from $13,110,528 in Q4 last year.

The gross profit was $10,276,740 (31% of sales) for the year ending June 30, 2017 compared $8,610,294 (28% of sales) for fiscal 2016.  The gross profit for Q4 of fiscal 2017 was $4,762,713 (30%) compared $3,289,134 (25%) for the same quarter last year. The improvement in margins results from improved efficiencies and utilization in all areas of the greenhouses.

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 21% to $7,048,609 for the year ending June 30, 2017 compared to $5,806,890 of EBITDA for the previous  year. EBITDA for Q4 of fiscal 2017 was $3,374,501, a 44% improvement over $2,351,272 of EBITDA for the same quarter last year.

Operating expenses totaled $2,714,078 for the fourth quarter compared to $1,590,505 the same quarter last year.  $942,272 of the increase was related to CubicFarm System Corp, a 51% subsidiary of Bevo Agro Inc. Depreciation expenses were approximately $130,000 higher because of increases in fixed assets.

Bevo Agro maintains a balance of fixed and floating rates on borrowings as a hedge against interest rate fluctuations.  From a balance sheet perspective, the Company maintains sufficient working capital to manage its business and to maintain conservative financial ratios.

Readers are encouraged to view the Company's audited financial statements at June 30, 2017, and accompanying MD&A at www.sedar.com.

Summary- Consolidated Condensed Statements of Operations and Comprehensive Income

Summary- Consolidated Condensed Statements for Q4

Bevo's Trailing Twelve Months comparative results are summarized below

Bevo Agro is North America's leading supplier of propagated agricultural plants, operating greenhouse facilities in Langley, BC and 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 customer orders through recurring multiyear contracts. 

Bevo achieved a ranking in the 2015 TSX Venture 50® which recognized the strongest companies on TSXV by share price, trading volume, market capitalization and analyst coverage. The winning companies have seen impressive growth over the previous year, offered strong returns 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.