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.

    
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    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    

For further information: Jack Benne, President, Bevo Agro Inc., Phone: [phone], Fax: [phone], Email: [email protected]